What Caught Our Attention in the Investment World? – Week of August 8-12, 2022

By Kuldip K. Ambastha

The stock of VIZIO Holding Corp. (VZIO), a company involved in designing and manufacturing consumer electronics, had a +18.1% per share rise in price on Thursday, August 11, 2022. For 2Q2022, the company’s sales did not match or exceed Wall Street equity research analyst expectations. However, the company also delivered a profit, linked mostly to cost-cutting measures. VIZIO’s Platform+ offering seems to have a bright future, and the company has been added to the Russell 3000 Index. VIZIO’s 2Q2022 earnings per share figure was $0.01.

Keywords – VIZIO Holding Corp., VIZIO Holding, VIZIO, VZIO, Platform+, Russell 3000 Index, designing, manufacturing, consumer electronics, sales, profits, costs, earnings per share, EPS, Wall Street, equity research, analyst expectations.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in VZIO.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2022 – Ambastha Financial LLC.

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What Caught Our Attention in the Investment World? – Week of August 1-5, 2022

By Kuldip K. Ambastha

On Wednesday, August 3, 2022, the stock price of SoFi Technologies, Inc. (SOFI), an American online personal finance company, rose by a sharp +28.4% per share for the trading day. (See past coverage if needed: “What Caught Our Attention in the Investment World? – Week of October 11-15, 2021; By Kuldip K. Ambastha.”) Net revenues were impressive for the latest quarter, and SoFi obtained over 450,000 new members on its fintech platform. Member deposits stand at $2.7 billion, and these dollars serve as a stable source of funding for SoFi’s loan business unit. Because of these developments, SoFi leadership sees a much improved full-year earnings outlook in the near future.

Keywords – SoFi Technologies, Inc., SoFi Technologies, SoFi, SOFI, World Wide Web, WWW, Internet, online, personal, finance, technology, tech, fintech, loans, revenues, earnings, members, deposits.

Disclosure – The principals of Ambastha Financial LLC have a long equity and a short option position in SOFI. The clients of Ambastha Financial LLC have no positions in SOFI.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2022 – Ambastha Financial LLC.

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What Caught Our Attention in the Investment World? – Week of July 25-29, 2022

By Kuldip K. Ambastha

On Wednesday, July 27, 2022, the stock of global pharmaceutical company Teva Pharmaceutical Industries Limited (TEVA) rose in price by +28.4% per share. Teva is the world’s largest generic medicine producer, and has been struggling for the last five years because of weakness in the American generic medicine sector plus intense competition against its Copaxone multiple sclerosis drug offering. However, the stock on Wednesday benefited from the conclusion of many years of negotiation related to opioid lawsuits. A proposed $4.35 billion settlement for the relevant American lawsuits was received warmly, but still needs to be finalized and approved before taking effect. If the proposal ends up being successfully implemented in full, it will clear the way for Teva to have stronger revenue growth with less legal uncertainty in the future.

Keywords – Teva Pharmaceutical Industries Limited, Teva Pharmaceutical Industries, Teva Pharmaceutical, Teva, TEVA, pharmaceutical, medicine, generic, multiple sclerosis, Copaxone, opioids, settlement, revenues, law.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in TEVA.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2022 – Ambastha Financial LLC.

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What Caught Our Attention in the Investment World? – Week of July 18-22, 2022

By Kuldip K. Ambastha

Carnival Corporation & plc (CCL), a leisure travel company, had its stock fall by -11.2% on Thursday, July 21, 2022 and -6.0% on Friday, July 22, 2022 to close out the trading week. (See past coverage if needed: “What Caught Our Attention in the Investment World? – Week of December 20-23, 2021; By Kuldip K. Ambastha” and “What Caught Our Attention in the Investment World? – Week of April 6-10, 2020; By Kuldip K. Ambastha.”) The immediate cause of the stock price drop for this company (plus its sector peers) was an equity sale of about $1 billion which was done at the low end of per share figures for prior equity sales. The 102 million in equity shares sold were priced at $9.95 per share (while prior equity sales were done at between $9.95 and $10.50 per share), with the proceeds likely to be used to retire debts due in 2023. In other news, on Monday, August 1, 2022 the current Chief Executive Officer (CEO) Arnold Donald will be stepping down, with the current Chief Operations Officer (COO) Josh Weinstein becoming the next CEO.

Keywords – Carnival Corporation & plc, Carnival Corporation, Carnival Corp., Carnival, CCL, cruise, travel, leisure, tourism, equity, debt, Chief Executive Officer, CEO, Arnold Donald, Chief Operations Officer, COO, Josh Weinstein.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in CCL.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2022 – Ambastha Financial LLC.

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What Caught Our Attention in the Investment World? – Week of July 11-15, 2022

By Kuldip K. Ambastha

The stock of Tilray Brands, Inc. (TLRY), a Canadian company with an extensive presence worldwide in the cannabis sector, delivered +14.6% on Thursday, July 14, 2022 followed by -10.6% on Friday, July 15, 2022. Politics plays a big role in the success or failure of any cannabis sector company. On Thursday, positive news was released in terms of potential cannabis legalization in the USA and Germany through legislation. The enthusiasm seen on Thursday was partially reversed through an aggressive sell-off on Friday. Despite some momentum being made in various countries towards cannabis legalization, in the current day cannabis sector companies are still in a highly restricted legal landscape all over the world.

Keywords – Tilray Brands, Inc., Tilray Brands, Tilray, Canadian, cannabis, marijuana, politics, legalization, legislation, regulation.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in TLRY.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2022 – Ambastha Financial LLC.

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What Caught Our Attention in the Investment World? – Week of July 5-8, 2022

By Kuldip K. Ambastha

GameStop Corporation (GME), a video game retailer, had an up-and-down trading week for its stock with three negative daily returns and one positive daily return. (Monday, July 4, 2022 was an American holiday – Independence Day / Fourth of July – and thus not a trading day.) (See past coverage if needed: “What Caught Our Attention in the Investment World? – Week of February 1-5, 2021; By Kuldip K. Ambastha” and “What Caught Our Attention in the Investment World? – Week of January 25-29, 2021; By Kuldip K. Ambastha.”) In a weakening economy, GameStop may be administering layoffs in the near future. Also, the company’s Chief Financial Officer (CFO) will be leaving his position soon. These two points negatively affected the company’s stock on most days of the trading week.

That said, on Thursday, July 7, 2022, the stock increased by a significant +15.1% for the day because of the announcement of a 4-for-1 stock split. GameStop Corporation, a meme stock coveted by speculators, clearly is in volatile times and may or may not be able to execute a successful turnaround in the future. When it comes to GameStop Corporation, this trading week was a prime example of how positive and negative news items can drive a stock’s daily returns.

Keywords – GameStop Corporation, GameStop Corp., GameStop, GME, video game, retailer, positive, negative, Chief Financial Officer, CFO, layoffs, stock split.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in GME.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2022 – Ambastha Financial LLC.

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What Caught Our Attention in the Investment World? – Week of June 27-July 1, 2022

By Kuldip K. Ambastha

The stock of RH (RH), a luxury lifestyle retailer perhaps better known by its former name of Restoration Hardware, had four negative return days and one positive return day in this past trading week. The worst day’s return was -10.6% per share, as seen on Thursday, June 30, 2022. The company has lowered its performance expectations for the near future, especially from the perspective of revenues. Less than ideal economic conditions and a potential recessionary environment in the USA have led to lessened demand for luxury items provided by retailers such as RH. Accordingly, the stock of RH may be in value trap or value play territory at the moment, depending on the prospects for recovery in the retail space going forward.

Keywords – RH, Restoration Hardware, luxury, lifestyle, retailer, retail, negative, positive, performance, revenues, economic, conditions, recessionary, recession, demand, value, trap, play, recovery.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in RH.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2022 – Ambastha Financial LLC.

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What Caught Our Attention in the Investment World? – Week of June 21-24, 2022

By Kuldip K. Ambastha

In the past trading week, the global beauty company Revlon, Inc. (REV) had mostly positive daily returns except for a price decline of -11.5% per share seen on Thursday, June 23, 2022. Per an announcement dated Thursday, June 16, 2022, Revlon has filed for voluntary Chapter 11 bankruptcy and reorganization for prominent units of the company. After this announcement from the prior trading week, Revlon became the latest meme stock which speculators believe perhaps has a bright future despite current troubles. Accordingly, the -11.5% negative return seen for Thursday, June 23, 2022 could be a sign of temporarily declining corporate fundamentals which could improve later on per what retail investors are hoping. However, only time will tell if the speculators are right to be bullish at this point.

Keywords – Revlon, Inc., Revlon, REV, beauty, Chapter 11, bankruptcy, reorganization, meme stock, speculation, bullish.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in REV.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2022 – Ambastha Financial LLC.

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What Caught Our Attention in the Investment World? – Week of June 13-17, 2022

By Kuldip K. Ambastha

On Monday, June 13, 2022, MicroStrategy Incorporated (MSTR), an American technology company, had its stock price fall by -25.2% per share. MicroStrategy offers business intelligence, mobile software, and cloud-based services, and is often in the news because of its exposure to bitcoins which secure a $205 million, 3-year loan from a cryptocurrency bank. As the price of bitcoin and many other cryptocurrencies have fluctuated wildly in the recent past, MicroStrategy has also been affected as one of the companies with the biggest exposure to bitcoin. Investors are concerned for the health of MicroStrategy, since a margin call (demand for more bitcoins as collateral) could be initiated if the price of bitcoin drops significantly. MicroStrategy claims to have enough unrestricted bitcoins available to cover any margin call, but clearly Wall Street is skeptical on this front given the stock price decline seen on Monday, June 13, 2022.

Keywords – MicroStrategy Incorporated, MicroStrategy, MSTR, technology, tech, cryptocurrency, bitcoin, exposure, margin call, collateral, Wall Street.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in MSTR.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2022 – Ambastha Financial LLC.

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What Caught Our Attention in the Investment World? – Week of June 6-10, 2022

By Kuldip K. Ambastha

Novavax, Inc. (NVAX), a clinical-stage vaccine company, had its stock price fall by -17.2% per share on Thursday, June 9, 2022. (See past coverage if needed: “What Caught Our Attention in the Investment World? – Week of December 27-31, 2021; By Kuldip K. Ambastha.”) In 1Q2022, earnings per share plus total revenues did not surpass Wall Street’s consensus estimates, and furthermore Wall Street has now adjusted its future expectations downwards. In the USA, the Vaccines and Related Biological Products Advisory Committee of the Food and Drug Administration (FDA) has voted to give emergency-use authorization (EUA) to Novavax’s COVID-19 vaccine NVX-CoV2373. However, the FDA has also stated that changes in Novavax’s production processes need to be reviewed further, and this negative regulatory news dominated anything positive seen for Novavax in the past trading week.

Keywords – Novavax, Inc., Novavax, NVAX, clinical-stage, vaccine, NVX-CoV2373, COVID-19, coronavirus, pandemic, 1Q2022, earnings per share, revenues, emergency-use authorization, EUA, United States of America, United States, USA, Food and Drug Administration, FDA, regulation.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in NVAX.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2022 – Ambastha Financial LLC.

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