Carvana Careens To New Highs

The return of “left for dead” stocks continues as investors look for opportunities in the market beyond the “magnificent seven.” 🔍

Carvana is an excellent example of this turnaround story in action, with the stock posting its first-ever annual profit and catching several analyst upgrades. 💊

The online car retailer’s $450 million in net income during 2023 compared to a $1.59 billion loss in 2022. Management’s focus on cost-cutting is paying dividends, and it is currently working on step two of a three-step restructuring plan.

While management admitted the macroeconomic car-selling environment remains uncertain, it now expects to grow retail units sold in 2024. And with its total gross profit per unit more than doubling to $5,283 last quarter, improved unit economics should help it approach breakeven on an adjusted EBITDA basis. 🔚

Long story long, the stock was priced for bankruptcy, but the company actually turned things around. It’s still got a long road ahead of it, but “not dead” is a big improvement from imminent bankruptcy… And that is certainly reflected in $CVNA shares, which made a new cycle high and are now up 2,100% from their lows. 📈

We’ll see if it can continue, but the wild ride for Carvana bears certainly continued this week. ðŸĪŠ

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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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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. ðŸŽŊ

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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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. ðŸĪĐ

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. 💊

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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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