Author: Kuldip K. Ambastha

By Kuldip K. Ambastha

Teladoc Health, Inc. (TDOC) is a multinational virtual healthcare and telemedicine company. On Thursday, April 29, 2021, the company’s stock dropped by -8.3% for the trading day. Wall Street research analysts had expected a net loss for the latest (1Q2021) quarterly results. Teladoc surprised Wall Street research analysts by announcing a net loss which was larger in absolute value magnitude than expected. Specifically, on a per share basis for the calendar quarter of 1Q2021, Teladoc’s diluted net loss was -$1.31, while the Wall Street research analyst consensus estimate was instead -$0.54.

While total revenues were strong, total expenses were very high and thus led to a significant net loss in 1Q2021. After the net loss was announced, various Wall Street research analysts revised their analyses to reflect lower price targets for the stock going forward. The virtual healthcare and telemedicine sector has benefited from patients seeking out efficient, accessible, technology-based health solutions, but Teladoc nonetheless had a tough 1Q2021.

Keywords – Teladoc Health, Inc., Teladoc Health, Teladoc, multinational, virtual, healthcare, telemedicine, health solutions, Wall Street, 1Q2021, net loss, price target.

Disclosure – The principals and 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 © 2021 – Ambastha Financial LLC.

By Kuldip K. Ambastha

UiPath Inc. (PATH) was founded in Romania, is now headquartered in New York City, and is a global software platform company focused on robotic process automation. The company’s IPO date was Wednesday, April 21, 2021, during this past trading week. The IPO reference price was $56.00 per share, for 23,890,777 Class A shares. This IPO was one of the largest IPOs ever seen in the software industry and drew the attention of many investors. On Wednesday, April 21, 2021, the stock opened at $65.50 per share. On Friday, April 23, 2021, the stock closed at $75.10 per share. If strong investor demand continues to be seen for the shares of UiPath and other publicly traded software companies, more software companies may IPO in the calendar year of 2021.

Keywords – UiPath Inc., UiPath, PATH, Romania, New York City, global, technology, tech, software, platform, robotic process automation, IPO, Initial Public Offering, equities, stocks, shares.

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

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 © 2021 – Ambastha Financial LLC.

By Kuldip K. Ambastha

Investors all over the world continue to be intrigued by the cryptocurrency and blockchain sector. Coinbase Global Inc. (COIN) had a reference price of $250.00 for its NasdaqGS direct listing of pre-existing private shares. Wednesday, April 14, 2021 was the first full day of public trading for Coinbase Global, with the stock opening at $381.00 and closing at $328.28. At the end of Friday, April 16, 2021, the stock closed at $342.00.

As more institutions and governments take proactive steps to move the cryptocurrency and blockchain sector into the mainstream, the strong interest in shares of Coinbase Global was expected. That said, the cryptocurrency and blockchain sector is a definitely high-risk and potentially high-return sort of investment proposition for now. Only time will tell if the volatile sector will mature and cryptocurrencies will become a safe store of value like gold is now considered.

Keywords – Coinbase Global Inc., Coinbase Global, Coinbase, COIN, cryptocurrencies, cryptocurrency, blockchain, NasdaqGS, direct listing, public trading, stock, mainstream, high-risk, high-return, store of value, gold.

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

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 © 2021 – Ambastha Financial LLC.

By Kuldip K. Ambastha

Blink Charging Co. (BLNK) is a company in the electric vehicle (EV) space, focused on operating and providing EVs, charging equipment, and networked EV charging services. On Thursday, April 8, 2021, the company’s stock returned +12.9% for the trading day. Blink’s large stock gain on this trading day was driven by the public announcement of an agreement with Four Brothers Pizza Inn (Four Brothers). Blink will be deploying 42 charging ports (specifically, 21 chargers with 2 ports each) at 10 Four Brothers locations across the state of New York.

Funding from programs within the state of New York (the Make Ready incentive of New York utilities, plus the Charge Ready program from the New York State Energy Research and Development Authority [NYSERDA]) made this agreement lucrative to both Blink and Four Brothers. In the USA at the federal government level, legislation aimed at building a national EV charging system may be possible in the future. If this federal legislation is passed, Blink’s stock price may benefit even further going forward.

Keywords – Blink Charging Co., Blink Charging, Blink, BLNK, electric vehicle, EV, Four Brothers Pizza Inn, Four Brothers, New York, NY, state of New York, The Empire State, Make Ready, Charge Ready, New York State Energy Research and Development Authority, NYSERDA.

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

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 © 2021 – Ambastha Financial LLC.

By Kuldip K. Ambastha

Chewy Inc. (CHWY) is an American company focused on the online retailing of pet food and other pet-related items. On the trading day of Wednesday, March 31, 2021, the stock rose by +5.4% due to impressive quarterly performance figures. In the latest quarter, sales exceeded $2 billion for the first time in the company’s history, with a profit of $21 million. Consumer demand for higher-end Chewy product offerings, a need for consumers to shop online because of the ongoing coronavirus pandemic lockdowns, and less dollars focused on costly marketing efforts all benefited Chewy. Company management has expressed a positive outlook for the future, but it remains to be seen if Chewy’s positive results will continue in later quarters.

Keywords – Chewy Inc., Chewy, CHWY, online, retailer, retailing, retail, pets, pet, food, quarter, quarterly, performance, sales, profit, consumers, consumer, COVID-19, coronavirus, pandemic, lockdowns, lockdown, marketing, revenues, revenue, costs, cost, past, present, future.

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 © 2021 – Ambastha Financial LLC.

By Kuldip K. Ambastha

On Sunday, March 21, 2021, Canadian Pacific Railway Limited (CP) announced that it would be buying Kansas City Southern (KSU), for $29 billion ($25 billion in cash and equity, along with $4 billion in outstanding Kansas City Southern debt). The surprise announcement resulted in a +11.1% return for Kansas City Southern plus a -5.8% return for Canadian Pacific, both as seen on the trading day of Monday, March 22, 2021. Subject to regulatory approvals, the merged entity would connect the USA, Canada, and Mexico (the three major countries of North America) through a railroad-based network of about 20,000 miles.

The new entity would be headquartered in Calgary, Alberta, Canada, and led by Keith Creel, the current Chief Executive Officer (CEO) of Canadian Pacific. Post-merger, the company to be called Canadian Pacific Kansas City (CPKC) will have approximately 20,000 employees. No job cuts have been announced. This is the largest-ever merger to be done in the railroad sector.

Politically, the United States-Mexico-Canada Agreement (USMCA) has updated the North American Free Trade Agreement (NAFTA). Canadian Pacific Kansas City (CPKC) will likely benefit from the terms of trade described in the USMCA.

Keywords – Canadian Pacific Railway Limited, Canadian Pacific Railway, Canadian Pacific, CP, Kansas City Southern, KSU, equity, debt, cash, merger, North America, USA, Canada, Mexico, railroad, Calgary, Alberta, Keith Creel, Canadian Pacific Kansas City, CPKC, United States-Mexico-Canada Agreement, USMCA, North American Free Trade Agreement, NAFTA.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in CP or KSU.

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 © 2021 – Ambastha Financial LLC.

By Kuldip K. Ambastha

Williams-Sonoma, Inc. (WSM), a home products retailer, had two strongly positive daily returns to end this past trading week: +18.5% (Thursday, March 18, 2021) and +8.2% (Friday, March 19, 2021). For the most recent fiscal quarter, the company exceeded consensus estimates related to earnings and revenues. All of its underlying brands plus its e-commerce division did well during the quarter. Due to the global coronavirus (COVID-19) public health pandemic, people have been spending most of their time at home and this has benefited Williams-Sonoma significantly. Starting with the next dividend payout, the stock’s quarterly dividend will be increased by +11.3%. A $1 billion share repurchase plan will be administered in the future as well. In short, the company had its most profitable quarter ever.

Keywords – Williams-Sonoma, Inc., Williams-Sonoma, WSM, home products, retailer, quarter, quarterly, earnings, revenues, global, coronavirus, COVID-19, public health, pandemic, dividend payout, share repurchase plan, most profitable quarter ever.

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

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 © 2021 – Ambastha Financial LLC.

By Kuldip K. Ambastha

Roblox Corporation (RBLX) went public in this past trading week through a direct listing on the New York Stock Exchange (NYSE). Roblox is an online gaming and entertainment platform which brings people together over shared interests. The stock’s reference price for the direct listing was $45.00. On Wednesday, March 10, 2021, the stock closed at $69.50, making for a +54.4% daily gain on the first trading day when contrasting the day’s adjusted closing price with the reference price. During the coronavirus (COVID-19) pandemic (which has resulted in people spending most of their time at home), more and more new users have flocked to the Roblox platform over time.

It remains to be seen if this trend will continue for Roblox once coronavirus (COVID-19) vaccinations have changed public health conditions on a more permanent basis around the world. Roblox allows users to create and monetize their own online games through Roblox Studio, and as of September 2020 had 31.1 million daily active users (DAUs). Of this number, 7.0 million users had created online games. If Roblox can keep the current DAUs and creators and also gain new DAUs and creators, then further daily stock price gains will be seen in the future.

Keywords – Roblox Corporation, Roblox Corp., Roblox, Roblox Studio, direct listing, New York Stock Exchange, NYSE, online, Internet, Web, gaming, entertainment, platform, users, daily active users, DAUs, creators, coronavirus, COVID-19, pandemic, vaccinations, public health.

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

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 © 2021 – Ambastha Financial LLC.

By Kuldip K. Ambastha

Rocket Companies, Inc. (RKT) was in the news during this past trading week. Rocket Companies is a Detroit, MI-based holding company which owns many underlying personal finance and consumer service brands. Rocket Companies prides itself on providing exceptional customer experiences through online solutions aiding the ultimate goals of home ownership and financial freedom for individuals. Retail investors showed a substantial interest in the shares of Rocket Companies during the past trading week. Per the table above, this interest resulted in two days of positive returns which were followed by three days of negative returns.

In the recent past, institutional investors were bearish about the stock and thus shorted it. Upon seeing this trend, retail investors moved into the stock, drove up the price of the stock, and forced many institutional investors to close out short positions. However, the upward return momentum stopped after two trading days. The mortgage market is expected to be strong going forward, but not so strong as to justify the positive price movement in the stock of Rocket Companies. Thus, the trading week ended with three days of negative returns. It remains to be seen what the next stock of massive interest to retail investors will be.

Keywords – Rocket Companies, Inc., Rocket Companies, RKT, Detroit, Michigan, MI, holding company, personal finance, consumer service, customer experience, home ownership, financial freedom, retail, institutional.

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

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 © 2021 – Ambastha Financial LLC.

By Kuldip K. Ambastha

In the past trading week, The Goodyear Tire & Rubber Company (GT) announced plans to acquire Cooper Tire & Rubber Company (CTB). The plans were made public on Monday, February 22, 2021, and on that same trading day Goodyear stock had a +21.0% gain while Cooper stock had a +29.4% gain. The strong gains on that trading day for the shares of both companies imply that Wall Street is bullish about this deal. Goodyear and Cooper are both American tire companies headquartered in Ohio.

With this acquisition, Goodyear will be able to enhance its dominant presence in the USA and approximately double its presence in China. Cost savings are estimated to be about $165 million in the first two years after the acquisition. Beyond cost savings, other details of how a combined entity would operate were not yet available. This deal is still subject to regulatory review and has to be approved by Cooper shareholders. If it closes, the deal will close in 2021 within the second half of the calendar year.

Keywords – The Goodyear Tire & Rubber Company, Goodyear, GT, Cooper Tire & Rubber Company, Cooper, CTB, USA, American, tire, Ohio, China, Wall Street, merger, acquisition, M&A, cost savings.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in GT or CTB.

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 © 2021 – Ambastha Financial LLC.