Earnings

February 21, 2024

Renewable Stocks Lack A Charge

The current market environment has not been kind to renewable energy stocks like electric vehicle makers or solar manufacturers. And that trend continued today with lackluster earnings results. 👎

Rivian kicked it off by saying that it’s laying off 10% of its workforce due to EV pricing pressures. Although it built and shipped more than double the vehicles it did in 2022, its 2023 losses still totaled more than $5.40 billion. đŸĒĢ

Lucid Motors didn’t fare much better, now predicting it will build just 9,000 EVs in 2024. That’s down from previous estimates of 90,000… It’s no big deal, just an extra zero on there. Its 2023 financial results showed the company lost $2.80 billion as it slashed prices to stoke demand.

SolarEdge tumbled sharply after issuing weaker-than-expected first-quarter guidance yesterday. Weak is putting it lightly, with management forecasting less than half of what Wall Street had anticipated. Elevated interest rates have depressed residential solar market demand, leaving the company (and its competitors) with a large inventory backlog to work through. ⛈ī¸

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SunRun followed suit today, with its revenues also missing expectations amid slumping demand. Its CEO and management feel confident that installations will grow considerably from current levels, but the market isn’t buying that narrative just yet. 

For solar and electric vehicle stocks, it’s all about the numbers. Until demand stabilizes and these companies give investors confidence that further dilution isn’t coming, they will likely remain in a downward spiral. đŸ˜ĩ‍đŸ’Ģ

Here’s a peek at the stocks mentioned and their 1-year total return. It’s not a great look in a market environment where most sectors and industry groups have charged higher with the bulls. 🤷

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March 4, 2024

The Battle Of The Clothing Boxes

The online personal styling business might’ve been a solid bet during the ZIRP era, but it has really taken a beating in the post-pandemic world. Today, we heard from Stitch Fix and ThredUp, battling for survival in the public markets. đŸ“Ļ

First up, Stitch Fix reported a $0.29 per share loss on $330.40 million in revenues. Both numbers missed estimates of a $0.22 loss and $330.88 million. Looking ahead, the company’s third-quarter revenue guidance of $300 to $310 million also missed expectations. đŸ”ģ

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February 15, 2024

Speculation Heightens As Jumia Jumps

As we’ve discussed, speculation continues to spread to all corners of the market. Even those areas that have been left for dead for quite some time. Today’s example of this is Jumia Technologies, the “Amazon of Africa” that caught wildfire early in its life before the gravity of reality brought it back down to earth. 🛒

The company reported reducing its losses by over 90% in the fourth quarter as it focused on restoring order and gross merchandise value (GMV) growth. Like other struggling companies, it cut costs significantly and leveraged lower tax provisions to help drive the earnings improvement. 

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Earnings

March 1, 2024

Plug Power Recharges Amid Market Rally

It was another day of records for the U.S. stock market as more and more stocks got snatched up in the bullish animal spirits. Let’s continue this week’s trend of pointing out the ragingly bullish action traders have been dealing with. 👇

Below is a chart of the S&P 500 showing prices rising for 16 of the last 18 months, posting a 25% rally since the end of October. It was also announced after the bell that Super Micro Computer and Deckers Outdoor will join the index, replacing Whirpool and Zions Bancorp. 📈

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Earnings

February 15, 2024

Another Day, Another Chip Rally

It’s another day, which means investors and traders were buying anything in the semiconductor space that isn’t tied down. Let’s see what you missed. 👇

First up, chip-equipment company Applied Materials soared to new all-time highs after citing “artificial intelligence” momentum during its earnings call. Adjusted earnings per share and revenues both topped expectations, while its current-quarter expectations also beat estimates. 🏭

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February 27, 2024

Buyers Move Beyond Tech

Animal spirits have been a big theme of this newsletter since October, and boy, are things getting wild. While the mainstream media continues focusing on tech giants like Nvidia, investors and traders are searching far and wide for new opportunities to squeeze the shorts and make a killing. đŸ•ĩī¸â€â™‚ī¸

Today’s surefire sign of this speculative fervor building in the market is everyone’s favorite non-meat meat stock, Beyond Meat. đŸĢ¨

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Earnings

February 13, 2024

Lyft’s IR Department Just Whiffed

Investor relations departments are the silent heroes of a public company, receiving little recognition for the critical role they play. When they do receive a lot of attention, it’s generally not for good reason. That’s unfortunately what Lyft’s team is finding out today. đŸ˜ĩ‍đŸ’Ģ

After the bell, ridesharing company Lyft reported fourth-quarter results that were good, not great. But the stock immediately shot up and notched as high as a 60% gain before anyone realized what happened. Did the company just invent a cure for rare diseases? Are they pivoting to crypto or semiconductors? What was the cause of this?

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Earnings

February 20, 2024

Walmart Bets Big On Advertising

One of the core themes we’ve been discussing for a long time is the “ad-ification” of everything. No matter where you go or what you do, you’re likely being targeted by some form of advertising. And the reason why is because it’s such a high-margin, profitable business opportunity. đŸŽ¯

As a result, it’s no surprise to see America’s largest employer and big-box retailer, Walmart, leaning heavily into that narrative during its earnings call. 

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