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¸

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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Advertisers Remain Un-Pinterested

Although mega-cap technology giants like Meta, Alphabet, and Amazon are having no trouble in the advertising market, smaller players like Snap are. That trend continued today, with Pinterest missing revenue estimates. Let’s take a look at the numbers. 👇

The social media company’s adjusted earnings per share of $0.53 topped the expected $0.51. However, revenues of $981 million were $10 million shy of estimates despite rising 12% YoY.

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The Internet Of Things Grows Wings

While sentiment surges around crypto and artificial intelligence, it’s no surprise to see that hype around the “Internet of Things” company Samsara is also popping off. 🤩

The stock jumped to fresh all-time highs in the after-hours session following better-than-expected results. Its fourth-quarter revenues of $276.3 million topped estimates of $258.3 million, with its adjusted loss also narrower than anticipated. đŸ’Ē

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Disney Snags Two Content Whales

Disney has been struggling with a number of issues ranging from streaming losses to activist investor and political pressures. However, today’s earnings report offered some hope to investors betting on a longer-term turnaround in the stock. 🕊ī¸

The media giant reported $1.22 in adjusted earnings per share on $23.55 billion in revenues. Earnings topped estimates, while revenues were just shy. 

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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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