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Showing posts from February, 2022

Block: Same Square Problems

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  Block rallied 26% following strong Q4'21 earnings. The big rally is nearly equal to the returns any investors should expect for the full year. The stock is already expensive trading back at 12x adjusted revenue targets while the BNPL product introduces additional lending risks. Looking for more investing ideas like this one? Get them exclusively at Out Fox The Street.  Learn More » Block  ( SQ ) is finally worth a serious look after the fintech sector has corrected the last few months. The company has a new name, but investors still have to make sure the correct financials are analyzed due to the massive amount of revenues generated by bitcoin. My investment thesis is far more constructive on the stock now, though disappointed in the massive post-earnings jump and the acquisition of Afterpay. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details.   Update - Feb. 28   These analysts won't quit over payin

Teladoc Health: Buy After COVID-19 Bubble Ends

  Teladoc Health trades back to pre-covid levels despite forecasted strong growth. The telehealth provider continues to expand health products pushing strong into mental health with a higher recurring visit stream. The stock trades at only 33x '22 EBITDA targets, nearly equal to revenue growth targets. Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our model portfolio.  Learn More » After several warnings to investors,  Teladoc Health  ( TDOC ) collapsed back to pre-covid levels. Even with dramatic telehealth demand pulled forward, the stock isn't actually trading higher than back at the 2018 highs. My  investment thesis  is finally Bullish on the telehealth provider now that the market is undervaluing the business opportunity. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Macy's Is Easily Worth $50

  Macy's got a surprise analyst price target of $50, 100% above the previous stock price. The department store retailer has long had valuable real estate with the latest estimate at $7 billion, an amount nearly matching the current stock valuation. The stock is easily worth $50 based on just 10x EPS targets. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More » In a shocking move, Evercore ISI raised the price target on  Macy's  ( M ) to $50. Similar to recent moves in  Kohl's  ( KSS ), the department store retailer is a major play on improving retail sales and a massive undervalued real estate play. My  investment thesis  remains very Bullish on Macy's as the company quits donating market share in the retail sector and can now focus on monetizing valuable real estate. Read the full article on Seeking Alpha.  Disclosure: Long M. Please review the disclaimer page for more details.  Update - Feb. 22 Big qu

Under Armour: Temporary Speed Bump

  Under Armour reported another strong quarter with numbers smashing analyst estimates. The athletic apparel retailer guided to high supply chain pressures in the current quarter, but the situation is just a speed bump on long-term profit growth. The stock is ridiculously priced at 1x EV/S targets for 2022. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More » Under Armour  ( UA ,  UAA ) remains on track for a strong turnaround, but the market reacted negative last week to some transitional supply chain issues. The athletic apparel maker has successfully transitioned back to a performance brand after years sidetracked on junk apparel sold to off-price channels. My  investment thesis  remains ultra Bullish on the stock following the irrational dip since the mid-November highs above $27. Read the full article on Seeking Alpha.  Disclosure: Long UA. Please review the disclaimer page for more details. 

Meta Platforms: More Pain Ahead

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  Meta Platforms '22 EPS estimate has seen major cuts by analysts. The company forecast the Reality Labs division to see meaningful losses beyond the $10 billion loss in 2021. The stock trades closer to 20x reasonable '22 EPS targets, making Meta still expensive for the lack of EPS growth. Looking for a helping hand in the market? Members of Out Fox The Street get exclusive ideas and guidance to navigate any climate.  Learn More » Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details.  Another top trending article on Seeking Alpha. 

Roblox: Still On The Chopping Block

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  Roblox got hit by new allegations surrounding child porn on the platform. The company already faces declining user growth issues with a normalization of the user base following pandemic pull-forwards. The stock just isn't cheap enough at 9x forward sales with revenue growth targeted at only 20% and these allegations possibly further hitting user numbers. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More » As company after company falls due to normalization of user growth following pandemic pull-forwards in prior years,  Roblox  ( RBLX ) remains on the chopping block. The stock is already down 55% from the highs and the  new short report  from  The Bear Cave  could easily push Roblox down to new lows. My  investment thesis  is no longer ultra-Bearish on the metaverse gaming stock at $60, but Roblox is likely to trade lower before hitting bottom. Read the full article on Seeking Alpha.  Disclosure: No position men

Pinterest: Big Snap Back

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  Pinterest reports a mixed picture for Q3'21 with MAUs again down 13 million sequentially. The stock is soaring AHs based on solid guidance and a return to user growth in January. The stock trades at ~6x sales targets making Pinterest appealing here with a return to user growth and a long path towards higher ARPUs. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More » Following the horrendous Q4'21 results from  Meta Platforms  ( FB ), the market was fearing the worst from  Pinterest  ( PINS ) heading into their quarterly report. The company didn't exactly wow investors with the  quarterly numbers , but the stock is soaring on better than feared guidance. My  investment thesis  is more Bullish on Pinterest in the low-$30s following a 50% decline in the stock heading into earnings. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Meta Platforms: Yikes

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  Meta Platforms reported a horrible quarter in the first quarterly report after changing its name from Facebook. The social media platform is now losing over $13 billion annually on the Reality Labs segment focused on the Metaverse. The stock isn't investable with the disconnect between revenue growth and soaring expenses leading to massive EPS cuts going forward. Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our model portfolio.  Learn More » Read the full article on Seeking Alpha.  Disclosure: No position. Please review the disclaimer page for more details.  The article is currently the top trending one on Seeking Alpha.