Ambastha Financial LLC

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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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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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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By Kuldip K. Ambastha

On Thursday, June 2, 2022, the stock price of Chewy, Inc. (CHWY) rose by +24.2% per share. (See past coverage if needed: “What Caught Our Attention in the Investment World? – Week of March 29-April 1, 2021; By Kuldip K. Ambastha.”) Chewy, Inc. (CHWY), an online retailer of pet food and other pet-related items, delivered surprising results to Wall Street on this trading day. In 1Q2022, the company had earnings of 4 cents per share alongside revenues of $2.43 billion, with both of these measures beating their respective forecasted consensus estimates. In a highly volatile stock market environment, this surprise on the upside was welcome news.

Keywords – Chewy, Inc., Chewy, CHWY, online, retailer, retailing, retail, pets, food, 1Q2022, quarter, quarterly, performance, earnings, revenues, positive, upside, surprise, Wall Street.

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

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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By Kuldip K. Ambastha

Snap Inc. (SNAP), a social media technology company with smartphone camera application Snapchat as its flagship offering, had its stock price drop by -43.1% per share on Tuesday, May 24, 2022. (See past coverage if needed: “What Caught Our Attention in the Investment World? – Week of April 20-24, 2020; By Kuldip K. Ambastha” and “What Caught Our Attention in the Investment World? – Week of January 13-17, 2020; By Kuldip K. Ambastha and Anil K. Ambastha.”) This stock price plunge was the biggest one-day decline ever for Snap, and also led to negative price action on other publicly traded social media company names. Snap has cut its revenue and profit forecasts, since its advertising business will suffer if forecasts for a weaker economy going forward come true. Because of the challenges Snap is facing, new staff in 2022 will be less than what was seen in 2021, pre-existing staff will be expected to improve productivity, and a comprehensive spending review will be administered.

Keywords – Snap Inc., Snap, SNAP, Snapchat, technology, tech, social media, smartphone, camera, price, decline, negative, revenue, profit, advertising, weaker, economy, challenges, staff, productivity, spending, review.

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

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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By Kuldip K. Ambastha

Ross Stores, Inc. (ROST), an American chain (“Ross Dress for Less”) of discount department stores, had its stock price drop by -22.5% per share on Friday, May 20, 2022. 1Q2022 sales were down from the same figure released for 1Q2021. Inflationary pressures have resulted in customers spending less overall, including at Ross Stores. Full 2022 year forecasts for sales and profits have been cut. Wall Street was not pleased.

Keywords – Ross Stores, Inc., Ross Stores, Ross, Ross Dress for Less, ROST, discount, department, retail, store, sales, profits, 1Q2022, 1Q2021, 2022, Wall Street.

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

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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By Kuldip K. Ambastha

The stock price of Unity Software Inc. (U), a videogame software development company, fell by -37.0% per share on Wednesday, May 11, 2022. In Unity Software’s latest quarterly conference call, company leaders disclosed impressive 1Q2022 results, but also noted disappointing 2Q2022 and 2022 full-year guidance. Wall Street was displeased with the guidance on future revenues, in particular. Unity Software had been considered a company which could deliver strongly in a future metaverse world, where people flock to a comprehensive and enjoyable 3D virtual experience online. If Unity Software continues to disappoint going forward, it may not become a dominant player in the metaverse space.

Keywords – Unity Software Inc., Unity Software, Unity, U, technology, tech, videogame, software, metaverse, 3D, virtual, experience, online, 1Q2022, 2Q2022, 2022, guidance, future, revenues.

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

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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By Kuldip K. Ambastha

On Tuesday, May 3, 2022, the stock price of Chegg, Inc. (CHGG), a direct-to-student online learning platform, dropped by -30.3% per share. (See past coverage if needed: “What Caught Our Attention in the Investment World? – Week of November 1-5, 2021; By Kuldip K. Ambastha.”) In the latest quarter, the company reported positive information related to revenues, net income, and subscriber count. However, the company also gave discouraging guidance for the future, a future in which inflation (higher cost of living combined with higher wages) may result in more and more people wanting to prioritize work over education. Wall Street was clearly displeased with this future guidance from the leaders of Chegg.

Keywords – Chegg, Inc., Chegg, CHGG, online learning, education, students, revenues, net income, subscriber count, inflation, costs, wages, future guidance, work, Wall Street.

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

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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By Kuldip K. Ambastha

The stock of Teladoc Health, Inc. (TDOC), a multinational virtual healthcare and telemedicine company, dropped by -40.2% per share on Thursday, April 28, 2022. (See past coverage if needed: “What Caught Our Attention in the Investment World? – Week of April 26-30, 2021; By Kuldip K. Ambastha.”) Wall Street did not like the information Teladoc announced as part of the latest quarter’s performance announcement. Some items of concern were a $6.6 billion impairment charge to goodwill, lower than expected sales, slowing growth, and decreased revenue guidance for the year. The end result was a $41.58 earnings per share (EPS) loss, which was significantly more negative than what any equity research analyst was expecting for the last quarter.

Keywords – Teladoc Health, Inc., Teladoc Health, Teladoc, multinational, virtual, healthcare, telemedicine, health solutions, Wall Street, equity research, quarter, year, goodwill, impairment, sales, growth, revenue, guidance, earnings per share, EPS, loss.

Disclosure – The principals of Ambastha Financial LLC have a short position in TDOC. The clients of Ambastha Financial LLC have no positions in TDOC.

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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By Kuldip K. Ambastha

On Wednesday, April 20, 2022, the stock price of Netflix, Inc. (NFLX), a subscription streaming service and production company, dropped by -35.1% per share. (See past coverage if needed: “What Caught Our Attention in the Investment World? – Week of July 15-19, 2019; By Anil K. Ambastha and Kuldip K. Ambastha.”) The stock had benefited from stay-at-home COVID-19 public health pandemic best practices, but is now struggling. In the latest quarter, Netflix reported a surprise net subscriber loss and also, in the next quarter, said it is expecting further loss in the near future.

Netflix will be cracking down on account password sharing, and also will be making other changes which may or may not benefit its stock price over the long-term. Wall Street equity research analysts have downgraded the stock and / or instituted cuts in the stock’s price target. Many investors seem to have lost confidence in Netflix. The sharp drop in the stock price of Netflix may hint at future turmoil in technology sector companies going forward.

Keywords – Netflix, Inc., Netflix, NFLX, technology, tech, subscription, streaming, production, drop, loss, downgrade, cut, price, target.

Disclosure – The principals of Ambastha Financial LLC have a short position in NFLX. The clients of Ambastha Financial LLC have no positions in NFLX.

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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