Earnings Trip Over Supply Chain Issues
Michael Spencer
A.I. Writer, researcher and curator - full-time Newsletter publication manager.
Since LinkedIn doesn't actually cover real business news around the valuations of companies let's talk about how supply chain issues are impacting major companies and their stocks shall we?
These include the death spiral of the Fitness Metaverse and why acquiring all your competition (while pretending you are more profitable than you actually are) in a short period may not be a good business plan.
This week has been volatile for quite a few names getting major corrections including:
Supply chain issues and post-Covid-19 demand are challenging a number of companies.
Peloton
$PTON is down 34% today. The at-home fitness equipment maker slashed its annual sales forecast by as much as $1 billion. Momentum is fading for its bikes and treadmill machines, and more consumers are heading back to gyms. The?Fitness Metaverse?is not looking good this Fall.
Moderna
Q3 Earnings have not been great for everyone. Moderna shares fell Thursday after it cut its Covid-19 vaccine sales forecast for the year. $MRNA shares fell an additional 22% today so far. The company said some doses for delivery this year have been shifted to early 2022 amid production issues and as it prioritizes deliveries to low-income countries through COVAX. In releasing its third-quarter earnings, Moderna said it is now expecting to deliver between 700 million and 800 million doses this year, down from its previous expectations of between 800 million and 1 billion doses. The company also said it projects sales of $17 billion to $22 billion in 2022.
NRx
$NRXP NRX Pharmaceuticals’s stock is down 20% so far today due to the FDA rejection of its EUA for Zyesami. You can read?more about it here. ?This also impacts its Swiss partner $RLFTF whose stock is down even more. This is a volatile pharma Covid-19 treatment related name and I only recommend it now for meme stock enthusiasts.
Lightspeed Commerce
Lightspeed’s stock has been on a downward trend in recent weeks for a?variety of reasons . The Spruce Point Capital report was pretty interesting. The stock is down 28% in the last five days. The company announced a loss that doubled the year before by 203% to US$59.1 million. Weak outlook and bad supply chain issues mean more pain is coming. The company’s acquisition binge is costly and its attempt to get more into E-commerce seems disorganized.
Roku
Roku missed revenue estimates in its latest Earnings. They said the slowdown is a result of “global supply chain disruptions that have impacted the U.S. TV market.”The company’s revenue came in at $680 million, just below a Refinitiv forecast of $683.4 million. That’s still up 51% from a year earlier. Roku’s chart is very volatile and a buy on any major dip is highly recommended if you are a long-term investor.
For my serious coverage of?micro cap stocks go to StockQuest . My?Buy calls for premium?members?take place twice a month, as well as my?Stock alerts, and that is where my best calls are made with price targets in a swing trade buy the dip strategy that’s scalable to compound brokerage accounts.
Speak Truth to Power
3 年Peloton Bikes are expensive. It might be cheaper to buy a car. I'll always remember them for the commercial where a subservient woman is told by her boyfriend to lose weight when she looked good in the first place.