Ambastha Financial LLC

By Kuldip K. Ambastha

On Thursday, September 1, 2022, the stock of Okta, Inc. (OKTA), a technology company providing cloud-based identity management support for businesses, fell in price by -33.7% per share for the trading day. While 2Q2022 results surpassed Wall Street expectations, areas of concern on a going forward basis drove this sharp decline in the share price and many equity research analysts have downgraded the stock. Specifically, Auth0 (acquired in 2021) has not been successfully integrated into Okta at this time, and sales professionals affiliated with Auth0 have been leaving Okta at an elevated rate. Okta leadership may need to consider changes in sales compensation structures and in corporate strategies to improve profitability in the future. Tough decisions could lie ahead, especially as more and more technology companies are initiating workforce reduction plans given the current economic landscape.

Keywords – Okta, Inc., Okta, OKTA, Auth0, technology, tech, cloud, identity management support, Wall Street, equity research, downgrade, sales, strategies, workforce reduction, economy.

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

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 Burlington Stores, Inc. (BURL), an American off-price (discount) department store retailer once known as Burlington Coat Factory, fell by -10.2% per share on the trading day of Thursday, August 25, 2022. 2Q2022 corporate performance results were quite satisfactory, in general. However, 3Q2022 and 2022 corporate performance guidance disappointed Wall Street. Burlington Stores leaders mentioned lower earnings per share (EPS) expectations for 3Q2022 and fiscal year 2022, compared with the Wall Street consensus estimates in place prior to this new information being disclosed. An inventory overhang plus a weakened consumer buying capacity are key concerns for Burlington.

Keywords – Burlington Stores, Inc., Burlington Stores, Burlington, Burlington Coat Factory, BURL, off-price, discount, department store, retailer, retail, 2Q2022, 2022, fiscal year, performance, earnings per share, EPS, Wall Street, consensus estimates, inventory overhang, consumer, American, USA.

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

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 the trading day of Friday, August 19, 2022, the stock price of Foot Locker, Inc. (FL), a multi-channel athletic shoe and apparel retailer, rose by +20.0% per share. For 2Q2022, the company reported a $0.99 earnings per share (EPS) figure, which surpassed expectations. That said, the company also disclosed a $2.07 billion total sales figure, a decline from the prior quarter which now leads company management to expect a decline in total sales for the year of 2022. Aside from performance figures, the biggest Foot Locker news driving the stock price increase was on the Chief Executive Officer (CEO) transition front. Dick Johnson will be retiring effective Thursday, September 1, 2022, and will be succeeded by the well-respected and highly experienced Mary Dillon who Wall Street is expecting will initiate bold, new strategies at Foot Locker.

Keywords – Foot Locker, Inc., Foot Locker, FL, multi-channel, athletic, shoe, apparel, retailer, retail, earnings per share, EPS, sales, strategies, 2Q2022, 2022, Chief Executive Officer, CEO, Dick Johnson, Mary Dillon, Wall Street.

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

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 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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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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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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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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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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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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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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