Out Fox The $treet

  NIO has a potential inflection point with record vehicle deliveries, launching a new sub-brand, and introducing new technology. The Chinese EV company aims to turn profitable by increasing monthly deliveries and improving gross margins with the launch of the ONVO brand. The stock has seen the market valuation dip to only $8 billion, a fraction of 2025 sales targets. The EV space has faced a tough year or so, causing investors to forget the difficulties of building a new brand.  NIO, Inc.  ( NYSE: NIO ) is a prime example of a Chinese  EV company beaten down, yet the company is coming off their most successful delivery period. My  investment thesis  remains Bullish on the stock, with the lower valuation and signs of a bottoming process coming to an end soon. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details. 

  Cloudflare plans to dominate the AI inference market with their distributed network capabilities. Despite the strong growth potential in the AI market, the company offered up disappointing Q2 guidance, raising concerns about short-term performance. The stock has surged to unsustainable valuation levels, making it a risky investment despite promising long-term prospects. Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our subscriber-only portfolios.  Learn More » Just when  Cloudflare, Inc.  ( NYSE: NET ) appeared set for a reasonable valuation where investors could load up for the long term, the stock bounced off support and has surged to close the gap following the disappointing Q1 numbers. The  cloud networking and cybersecurity company has outlined a promising future with AI inferencing market growth. My  investment thesis  is Neutral on the stock here, with the ongoing rally likely to continue...

Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our subscriber-only portfolios.  Learn More » Update - June 24, 2024 Carnival reported a h uge quarter with massive cash flows. Not sure why the market got so negative on the stock, but the cruise line is now far more profitable than thought. The  $17 stock likely has earnings power of up to $2 in a few years.  -Q2 Non-GAAP EPS of $0.11 beats by $0.13. -Revenue of $5.78B (+17.7% Y/Y) beats by $90M. -Total customer deposits reached an all-time high of $8.3 billion, surpassing the previous record by $1.1 billion ($7.2 billion as of May 31, 2023). Original article posted on May 13, 2024 Carnival Corporation & plc stock has trended down to $14, providing an opportunity for investors to buy back in. The upcoming August quarter is expected to bring strong earnings finally for Carnival, with a quarterly profit topping $1 per share. Carnival's positive cash flows will help bo...

  Novavax, Inc. secured a lucrative deal with Sanofi, receiving potentially $1.2 billion in cash and future royalties for Covid vaccines. The deal significantly improved Novavax's financial position, but the stock has already rallied from $4 to $14, limiting potential upside. Novavax's future success hinges on the royalty revenue from the Sanofi deal in 2025, with limited ability to compete with Sanofi's commercialization capabilities. Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our subscriber-only portfolios.  Learn More » In a matter of months,  Novavax, Inc.  ( NASDAQ: NVAX ) went from a biotech with a questionable future to one flush with cash and a potentially huge royalty deal. Investors being too greedy and not alert were probably caught  on the wrong side of the trade. My  investment thesis  is more Neutral on the biotech due to the stock now trading at nearly $14, up from only $4. Read ...

Updated - June 12 Celsius continues to collapse due to Pepsi optimizing inventory levels. Pepsi cut inventory levels by another $20 to $30 million in Q2 following $20 million in Q1 for a total of up to $50 million. The stock has now fallen from $100 to only $62 and lily on the path to the previous lows at $50.  Celsius Holdings ( NASDAQ: CELH ) is on watch after several analysts lowered Q2 estimates on the energy drink company due in part to further inventory reduction by PepsiCo ( PEP ). During an investor conference on Tuesday, Celsius Holdings ( CELH ) management quantified the  PepsiCo ( PEP ) inventory reduction during the quarter at $20 million to $30 million sequentially, which came on the heels of a $20 million inventory reduction in Q1. "While some of the reduction was driven by PEP's working capital efficiencies and CELH starting to ship more to PEP's smaller distribution warehouses vs larger mixing centers, we believe the bulk of the 1H inventory cut reflects th...

  Enphase Energy, Inc. has seen initial signs of a turnaround in the residential solar business in key European countries, but actual demand is lower than expected. The company has been under shipping demand to reduce inventory in the channel, but the market forecasts a nearly 70% boost in sales from the current sell-through levels. The stock already trades at 20x '26 EPS targets, with many questions about the aggressive growth required to reach those levels. Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our subscriber-only portfolios.  Learn More » The solar space has gone through a digestion phase with light at the end of the tunnel finally.  Enphase Energy, Inc.  ( NASDAQ: ENPH ) has seen initial signs of the residential solar business turning in key European countries, but  the actual demand was far less than expected. My  investment thesis  remains Neutral on the stock after the recent rally ...

Update - May 21  Hims has slumped some after the initial 30% rally on Monday. The telehealth company should benefit from offering a compound GLP-1 version at a discounted price. The big question is the financial impact. The stock only trades at 3x '24 sales targets making Hims intriguing on any further dip.  -Hims & Hers Health (NYSE:HIMS) is offering customers access to compounded versions of Novo Nordisk's (NVO) semaglutide -- the active drug in its weight loss medication Wegovy -- at a fraction of the cost of the brand-name version. -The company said plans for injections of its compounded semaglutide -- which is also sold as the type 2 diabetes med Ozempic -- start at $199 a month. It is also offering a $79 a month plan for an oral version of semaglutide. That is also known as Novo's diabetes pill Rybelsus. Original article posted on May 7 Hims & Hers Health, Inc. is leading in personalized health and building a strong health and wellness platform, leading to str...