|Bid||2.9100 x 28000|
|Ask||3.0000 x 38800|
|Day's Range||2.8900 - 3.0100|
|52 Week Range||2.8500 - 6.9600|
|Beta (3Y Monthly)||0.56|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 29, 2019 - Nov 4, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||5.24|
The major bright spot in Apple’s (AAPL) recent earnings was the growth in its “Wearables, Home and Accessories” division—but don't overlook Apple Watch.
Second-quarter earnings generally were strong. 75% of S&P 500 components, according to Factset Research, posted a positive bottom-line surprise for the quarter. But several stocks in the market -- among them Uber (NYSE:UBER) stock -- fell sharply after weak earnings reports that made them, in many investors' eyes, stocks to sell. * 10 Stocks Under $5 to Buy for Fall These 10 stocks all tumbled after second quarter releases. In some cases, those declines have led to attractive, if high-risk, bull cases. For others, the sell-offs seem like signals of more trouble ahead. In all cases, however, earnings reports mattered -- and will likely color the stories going forward.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Uber (UBER)Source: Shutterstock To be fair, Uber didn't have a terrible quarter. Revenue, adjusted for a one-time driver bonus related to the company's IPO, still increased 26% year-over-year in Q2. And while UBER stock did fall almost 7% the day after earnings, it had gained over 8% the day of the after-close report, thanks to an earnings beat from rival Lyft (NASDAQ:LYFT).That said, UBER stock continued to decline in the following days, losing 21% of its value in just four sessions. That's over $16 billion in lost market value in less than a week. That's almost certainly the biggest loss on an absolute basis in the market this earnings season. UBER now trades at an all-time low, though admittedly it has only been public for just over three months.It's not at all clear that the decline is a buying opportunity. Uber remains unprofitable: its Adjusted EBITDA loss more than doubled year-over-year. UBER stock isn't cheap on a revenue basis, either. Its market capitalization remains over $56 billion, despite the fact that there are real long-term questions about the company's business model.In recent years, we have seen 'hot' IPOs tumble sharply: both Facebook (NASDAQ:FB) and Snap (NYSE:SNAP) come to mind. At least at the moment, UBER stock looks like it could follow that trend. Given that both of those stocks dropped more than 50% from their IPO price, UBER could have further downside ahead. 2U (TWOU)Source: Shutterstock Only one company saw a bigger post-earnings decline, on a percentage basis, then educational technology provider 2U (NASDAQ:TWOU). TWOU shares fell a stunning 65% in a single session the day after its second-quarter earnings report. That decline was topped only by Sanchez Midstream Partners LP (NYSEAMERICAN:SNMP), which dropped 69% and filed for bankruptcy less than a week later.Some investors saw the decline as an overreaction: TWOU shares have bounced 22% since. But there are real risks here.TWOU's guidance badly missed Street estimates on the bottom line -- and the company now is slowing its revenue growth as it focuses on controlling spending. One analyst called the report a "breaking of the company's model." And it's not like TWOU was soaring heading into the release. In fact, the stock posted a one-day drop of 25% after the Q1 release in May, and headed into second quarter earnings down almost 60% from its 52-week high. * 15 Growth Stocks to Buy for the Long Haul That said, for intrepid investors, there's a case to try and time the bottom. TWOU now trades at just 2x revenue. Its role in online education should drive some growth going forward, even if it will lag the 39% year-over-year increased posted in Q2. After the last two quarters, it would take a lot of gumption to own 2U stock into another earnings report. But perhaps, at least, TWOU can't perform much worse next time around. Kraft Heinz (KHC)Source: Shutterstock The disastrous run continued for Kraft Heinz (NASDAQ:KHC) in the second quarter. KHC shares fell 8.6% after earnings and tacked on another 6.1% decline the following day. KHC trades at an all-time low, and from both a short- and long-term standpoint, it's not difficult to see why.Q2 was yet another disappointing quarter. Sales declined 1.5% year-over-year on an organic basis, including a nearly 2% drop in the U.S. Adjusted EBITDA fell 19%; adjusted EPS dropped 23%. And those numbers are a reflection of a longer-term strategy that simply isn't working.3G Capital, with the help of Warren Buffett's Berkshire Hathaway (NYSE:BRK.A,NYSE:BRK.B), put Kraft and Heinz together, while planning to follow 3G's "zero-based budgeting" strategy. That strategy instead has starved Kraft Heinz brands of needed marketing and innovation spend, leading the company to underperform in an already-difficult consumer packaged goods space.There's a case to bet on a turnaround here. I made such a case at the beginning of the year, and many hedge funds have been buyers of late. But KHC's new CEO seemed to suggest no improvements were on the way any time soon -- and the crushing debt load created (in part) by the merger can continue to weigh on the equity here. It may seem incredible, but bond markets now reflect a not-insignificant chance that KHC stock goes to zero. Any investor buying KHC for a turnaround -- or its dividend -- should keep that in mind. GoPro (GPRO)Source: Shutterstock In recent years, investors have fled hardware manufacturers like GoPro (NASDAQ:GPRO). Second quarter earnings reports across the group prove why -- and will make it very difficult for the market to trust the sector any time soon.For GoPro, Q2 numbers weren't that bad. Revenue actually increased roughly 3% year-over-year, though the Street was looking for growth almost double that. Management forecast a strong second half and sounded an optimistic tone toward next year. Meanwhile, the midpoint of EPS guidance suggests GPRO stock trades at a roughly 10x P/E multiple.But investors weren't buying it -- literally. GPRO shares fell 13% after earnings. They're now just shy of an all-time low reached in December. And as I wrote last month, the short case here still seems to hold. GoPro has the action camera market mostly to itself; the problem is that the market simply isn't growing. Execution hasn't been great, and margins are somewhat thin. * 7 Safe Dividend Stocks for Investors to Buy Right Now And at a certain point, investors are going to tire of bidding GPRO up on hopes of a turnaround -- only for the company to disappoint and re-test the lows. In fact, it's likely that most investors already have. Fitbit (FIT)Source: Shutterstock There are more than a few parallels between Fitbit (NYSE:FIT) and GoPro. Both stocks soared after their IPOs (though GPRO stock saw a much bigger bounce), only to reverse to steep and almost uninterrupted declines. The two companies have been undertaking various turnaround strategies -- new products, cost-cutting, etc. -- for years now, none of which really has taken hold. And both firms are looking to subscription revenue as a way to offset the margin pressure on hardware sales.Fitbit, however, has it worse at the moment, in a number of ways. Its stock isn't just challenging an all-time low: it closed at one on Wednesday. FIT dropped 21% following earnings, against the 13% decline in GPRO, after the Q2 release came with a full-year guidance cut. And unlike GoPro, Fitbit isn't a market leader anymore: Apple (NASDAQ:AAPL) clearly has taken the smartwatch crown, with Garmin (NASDAQ:GRMN) also a legitimate player.For GPRO, there is at least is a case that the stock is cheap enough that even some growth can, at some point, drive the stock higher. FIT stock doesn't even have that case. The company does have a ton of cash: some $565 million (including marketable securities) at the end of the second quarter, against a market capitalization below $800 million. But it's also burning some of that cash, with even Adjusted EBITDA guided to a loss for the full year.Given market share erosion, it's hard to see how that reverses. The same is true of Fitbit stock. Arlo Technologies (ARLO)Source: Shutterstock For IP camera manufacturer Arlo Technologies (NYSE:ARLO), GPRO and FIT should have served as cautionary tales. ARLO stock has somewhat followed the same trend as its hardware peers, but the gains were smaller and the declines came much sooner.ARLO now has fallen 82% from its IPO price a little over a year after it debuted on the public markets. That includes an 18% decline after second quarter earnings earlier this month.It could get worse. Given that Arlo was spun off from NETGEAR (NASDAQ:NTGR) on the last day of 2018, it likely can't sell itself before 2021 without creating an enormous tax liability. But the company, at this point, may not be able to survive on its own. It's guiding for an adjusted operating loss in the range of $100 million this year. If that guidance is hit, Arlo will end the year with roughly $100 million in cash.In other words, performance needs to get better -- and quickly -- or else solvency becomes a real concern next year. But sales are declining as is and even that full-year guidance looks at risk. Arlo needs a huge Q4 just to hit its full year outlook -- and must then keep that momentum going into 2020. * 7 Stocks Under $7 to Invest in Now That might be difficult. Competition remains intense. Arlo still is discounting heavily: adjusted gross margin is guided to just 9-12% in the third quarter. The company is relying on the launch of its Ultra 4K camera and a video doorbell to drive sales growth -- but it has basically zero room for error. Arlo needs a huge holiday season this year, or the stock might be at zero before the next one. Groupon (GRPN)Source: Shutterstock It's not just hardware companies that turn into busted IPOs. Groupon (NASDAQ:GRPN) doesn't sell physical products, but it feels a bit like those hardware stocks.GRPN, too, is testing an all-time low after a disappointing earnings report undercut turnaround hopes. It is looking for subscription revenue with the launch of its Groupon Select offering.Groupon at least is profitable -- and has a fortress balance sheet, with almost $400 million in cash net of debt. But revenue is declining, and cost-cutting opportunities likely limited at this point. And the broad problem that I highlighted in April remains. This isn't really a 'tech' company -- not with some 2,000 salespeople on staff. The business model runs through the Internet, but it's not a high-margin platform story like Match Group (NASDAQ:MTCH) or Etsy (NASDAQ:ETSY).Instead, it's a tough, low-margin, labor-intensive business with high customer turnover. It's a business that simply hasn't been able to drive consistent growth. Until that changes, GRPN stock is going to stay cheap. Align Technology (ALGN)Source: Shutterstock A year ago, Align Technology (NASDAQ:ALGN) could do no wrong. Shares of the Invisalign manufacturer were soaring in a hot market. Valuation was a concern, admittedly. But ALGN stock seemed like the kind of stock where investors would keep paying up for its growth.A jittery market ended the rally at the beginning of October. Soft Q4 guidance given with Q3 earnings later that month sent ALGN tumbling. The stock lost more than half its value in the fourth quarter alone. But a new year led to a new rally: by early May, Align Technology stock had risen 58% in 2019.Those gains now are gone. ALGN has fallen 47% and has reversed to a 16% loss for this year. Once again, it was weak guidance that tripped up the stock, as the company cited a slowdown in growth in China and choppy performance among teens in the U.S.ALGN is tempting on the decline. This still seems to be a wonderful business model. Growth should continue, particularly in developing markets. Management remained confident after Q2 that revenue in China would rebound. And while competition is a risk, Align seems the leader in clear aligners -- which should take more share from traditional braces over time. * 7 Stocks to Buy With Over 20% Upside From Current Levels The one catch is that the stock simply isn't that cheap yet. ALGN still trades at 27x 2020 consensus EPS. With fears about the Chinese economy dominating the market, and a "falling knife" stock chart, even investors intrigued by the stock might do well to show some patience. Farfetch (FTCH)Source: nikkimeel / Shutterstock.com There are two common drivers of big downward moves. A company can miss earnings expectations -- or it can make an acquisition with which investors disagree. Luxury marketplace Farfetch (NYSE:FTCH) did both this month -- and its shares declined 44% as a result.The company is spending $675 million to acquire New Guards Group, a so-called "brand platform" that has launched luxury labels. That buy was announced the same day as Q2 results and lowered full-year guidance for GMV (gross merchandise value). So disappointing was Farfetch's outlook that RealReal Inc (NASDAQ:REAL), a used luxury good marketplace, fell 23% in sympathy.FTCH shares have managed to hold a bottom since, however, even in a market seemingly primed to punish luxury sellers. And there's a case that investors can buy an attractive growth story at a much cheaper price. Oppenheimer still sees a clean double. FTCH stock now trades at a more attractive ~4x multiple to 2020 revenue estimates. And the New Guards acquisition is a part of a strategy for Farfetch to develop and sell its own products, in addition to those of other boutiques.In a market where growth stocks still aren't cheap, or close, FTCH looks at least reasonably valued by comparison. And if management's strategy is on point, the post-Q2 declines in retrospect will look like a massive buying opportunity. DXC Technology (DXC)Source: Shutterstock There may not be a better stock for contrarian investors right now than DXC Technology (NASDAQ:DXC), the result of a merger of Computer Sciences Corporation with assets from Hewlett Packard Enterprise (NYSE:HPE).DXC shares are down roughly two-thirds from all-time highs reached in September. The stock trades at less than five times the low end of updated 2019 adjusted EPS guidance -- and barely four times the high end. There are worries, notably in the consulting business. But a sharp sell-off of late, including a 30% one-day decline after second quarter earnings, seems like an overreaction.That said, investors do need to be careful. Selling pressure hasn't let up yet, though weaker broad markets are a factor. DXC does have a decent amount of debt: almost $10 billion against a market capitalization now just above $12 billion. DXC is cheap relative to guidance, but that guidance was cut sharply after the second quarter and could see another reduction before the year is out. Contrarian investing in this market has been difficult, if not dangerous.Still, a sub-5x P/E multiple is attractive. There should be room for cost cuts going forward. Investors need to understand just what they're getting into -- but it's hard to find much in the way of cheaper stocks than DXC.As of this writing, Vince Martin is long shares of NETGEAR. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks Under $5 to Buy for Fall * 5 Stocks to Avoid Amid the Ongoing Trade War * 7 5G Stocks to Buy Now for the Future The post The 10 Biggest Losers from Q2 Earnings appeared first on InvestorPlace.
Fitbit Inc. shares continue to slump in the weeks following the company's disappointing financial outlook, with the stock dropping below $3 in intraday trading for the first time on Thursday. The stock is down more than 6% on the day and more than 30% so far in August. Fitbit slashed its full-year forecast in conjunction with its earnings report on July 31, disclosing that its new Versa Lite smartwatch isn't selling as well as expected and that the company misjudged consumer preferences on the marketing and pricing of wearables. Fitbit's stock has fallen 42% so far this year, while the S&P 500 has risen 14%.
When Boston University professor Ed Damiano set out to raise a new tranche of funding for a startup last year, his hopes were low: Diabetes device makers were struggling to raise money in a field that was being increasingly dominated by two players.
Stocks got absolutely crushed at the start of August. From Wednesday's less dovish than hoped for rate cut onward, the stock market went into steep decline. President Donald Trump's latest provocations in the trade war only added to the nervous mood on Wall Street. Instead of looking for stocks to invest in, traders headed for the exits.The S&P 500 dropped far under the psychological 3,000 level. Meanwhile the Dow Jones Industrial Average shed 1,000 points from its recent highs. Tech stocks got particularly hammered.With all that selling, however, comes opportunity. In particular, a lot of folks are looking for lower-priced stocks that could move back up quickly once the market finds its footing. While stock price alone doesn't indicate a company's value or riskiness -- it is market cap that counts more -- low-priced shares are often more volatile. As a result, these stocks could bounce back in a hurry as the market recovers.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 8 Dividend Aristocrat Stocks to Buy Now No Matter What Here are seven stocks to invest in now following the recent market declines. Stocks to Invest in: Fitbit (FIT)Source: Shutterstock Fitbit (NYSE:FIT) just announced another lousy quarter. Traders, not surprisingly, have pummeled the stock down to fresh 52-week lows. And, since its IPO, FIT stock is now down a crushing 90%. Since February alone, FIT stock has lost nearly half its remaining value.But it's not game over for Fitbit just yet. That's because the company has a substantial net cash position. It should exit 2019 with something like $550 million to $600 million in cash against a market cap of just $850 million. This means that a competitor can buy Fitbit for something like $1.2 billion -- a nearly 50% premium to the current depressed stock price -- and still only pay $600 million to get the actual company net of cash.Why would a competitor buy Fitbit? To compete with Apple (NASDAQ:AAPL). Apple's watches are doing well, and it is hard for Fitbit to compete as a standalone company. They are having to cut expenses, including research, which makes it hard to keep up. By contrast, a competitor with far more resources could benefit from having the Fitbit brand and reinvigorating it with more tech and marketing dollars. FIT stock will likely continue to erode in value if nothing happens, however, so be careful of that. The exit strategy here is clearly a takeover. Lloyds Banking Group (LYG)Source: Shutterstock Britain's will-they-or-won't-they Brexit drama has taken another turn. The controversial right-wing figure Boris Johnson became Britain's newest prime minister just over a week ago. Already, his new government was dealt a blow. A special election dropped Johnson's conservative party majority to just one seat. This heightens speculation that Johnson will need to call new elections before Oct. 31, which is the current deadline for the United Kingdom to leave the European Union.All this uncertainty has led British assets to fall even farther. The British pound is back to its 2016 lows against the dollar and is threatening to hit new all-time lows against the euro. People are dumping everything British. Lloyds Banking Group (NYSE:LYG), the $45 billion financial giant, has seen its stock slump from $2.80 to $2.45 just in the past few weeks. But is it really so bad?For one thing, the Brexit drama has been running for more than three years now. The British economy has already slowed down due to uncertainty. At this point, any businesses and consumers who were going to act out of worry about Brexit have done so already. On the plus side, Johnson is promising pro-business measures. He's often described as a British Trump, which certainly raises people's concerns. But if you bought stocks when Trump was elected, you've done very well. Johnson could usher in a similar surprise for beaten-down British stocks. * 5 Cheap Stocks to Buy Now That the Fed Cut Rates LYG stock in particular is now offering a more than 7% trailing-12-month dividend yield. It's trading at just 9x trailing and 8x forward earnings. It is also at less than 80% of book value. Even mediocre large banks tend to trade for at least book value if not a slight premium, which would suggest LYG stock is worth closer to $3.50 instead of the current $2.50 price. Groupon (GRPN)Source: Shutterstock Groupon (NASDAQ:GRPN) certainly isn't a hot stock anymore. At one time, people thought Groupon could be the internet's next big advertising platform. In fact, Groupon was so popular that rivals like Living Social attracted multi-billion dollar valuations as well. Well, the hype has definitely worn off. But Groupon is far from dead, and its share price discount makes it one of our stocks to invest in.The company has consolidated its rivals and faces little meaningful competition in its niche anymore. And business is still strong; there are plenty of people who like coupons, after all.It's not all great news for Groupon. The company's revenues have been declining at a single digit rate in recent years. It is trying to offset that with bigger average deal and international expansion. However, with the company's strong cash position, it has plenty of time to turn things around. Additionally, trading at less than 10x cash flow and 5x EBITDA, GRPN stock is cheap for an internet property. That could make it a takeover target for a larger firm or private equity. Cemex (CX)Source: Wikimedia CommonsIf you're like many people, the last time you heard about Cemex (NYSE:CX) was a few years ago when CNBC was hyping a few trades to take advantage of the Trump election. In theory, Cemex was supposed to be a great pick because they'd supply cement to build the wall. For a variety of reasons, this never played out, and CX stock has dropped 50% since then, including a 20% decline just over the past month.But with Cemex totally off everyone's radars, it has now become one of our stocks to invest in. Although Cemex is a Mexican company, it is one of the largest cement producers in America as well. Not surprisingly, investors have dumped the stock given concerns about the American economy and the uncertainty in Mexico since the new government took over there last winter.However, this consensus is mistaken. For one thing, Mexico's economic outlook is still strong, particularly with the North American Free Trade Agreement replacement deal now heading for approval. And the panic over a potential U.S. recession seems overblown. The jobs numbers and consumer confidence are both still near 20-year highs. Additionally, the Federal Reserve rate cuts will lower interest rates, allowing businesses to borrow more money. This, in turn, leads to more construction. * 10 Stocks to Buy on the Trade War Dip Why buy Cemex stock specifically? The company is selling off non-core European assets at favorable valuation ratios to reduce its debt. With that taken care of, the company should return more capital to shareholders in coming years. On a current EV/EBITDA basis, CX stock should be worth closer to $5 instead of the current $3.25 price. Additionally, when CX stock traded down to $3 in both 2012 and 2016, it subsequently rebounded to $10. A similar repeat now would cause shares to triple from here. B2Gold (BTG)Source: Shutterstock I last discussed B2Gold (NYSEAMERICAN:BTG) in my "3 Stocks Under $3 To Consider" article earlier this summer. BTG stock is no longer eligible for that category, as shares have surged 20% in recent weeks to top the $3 mark. In fact, BTG stock just hit fresh 52-week highs on Wednesday despite the broad market selling.I'd refer you back to my previous article for a more detailed overview of B2Gold's operations. The summary, however, remains that it is one of the most diversified smaller gold mining operations out there with impressive growth and an above-average caliber management team.More broadly, gold is continuing to power higher this summer, and silver has started tagging along for the ride. This indicates that investor sentiment for precious metals is rapidly heating up. Throw in the recent Fed rate cut and market unease elsewhere and things are coming together nicely for the precious metals here. BTG stock will continue to ride that wave higher. Sandstorm Gold (SAND)Source: Shutterstock With gold stocks on an absolute tear, it's worth featuring another one among our stocks to invest in as well. Sandstorm Gold (NYSEAMERICAN:SAND) is different from most gold firms because it is a streamer, not a miner. That means that it gets royalties from the production of other company's mines. In effect, Sandstorm is a specialty mining finance operation. This greatly reduces operating risk, because the mining firm, not the royalty owner, takes the hit if the mine fails to live up to expectations or other issues such as strikes or geopolitical problems occur.Over the past decade, while gold mining stocks, as a sector, have lost close to half their value in composite, the streamers have gained value. And Sandstorm, as one of the smallest and fastest-growing, has incredible leverage to the upside in the price of gold. Sandstorm just announced record gold-equivalent ounces of production last quarter. And it has big new asset streams coming online over the next couple of years. * 10 Cyclical Stocks to Buy (or Sell) Now SAND stock is already close to a double from last year's lows. But it could have a lot farther to go, especially if gold tops $1,500/oz this fall. Republic First Bancorp (FRBK)Source: Shutterstock Republic First Bancorp (NASDAQ:FRBK) is the last of our stocks to invest in. It's also in the doghouse at the moment. The northeastern regional bank has dropped from $7.50 in December to near $4 per share this summer. But it may not stay there long.Republic First has a few positive features that most small banks lack. For one, it has a superstar backer in the form of Vernon Hill. Hill led Commerce Bank to such great success that Canadian giant Toronto-Dominion Bank (NYSE:TD) eventually acquired it. Hill used that success to launch Metro Bank in the U.K. and bolster Republic First over here. He owns a large chunk of FRBK stock, and First Republic has brought in many of Hill's executives from Commerce to work for it.Republic First is now growing aggressively. It's posting double-digit deposit and loan growth rates. On top of that, the bank is set to open a premium Manhattan branch location at the corner of 14th St. and 5th Ave., which is a massive pedestrian traffic spot. Combine the bank's aggressive growth with its book value -- currently $4.22 -- and there's a lot to like. Downside on the stock is most limited as it already merely trades for book. But with 15%-20% growth in deposits and loans annually, this thing could take off in a hurry, as it is one of the fastest-growing Northeastern banks.At the time of this writing, Ian Bezek owned SAND stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 Dividend Aristocrat Stocks to Buy Now No Matter What * 7 Stocks to Buy to Ride the Vegan Wave * 4 Safe Stocks to Buy Amid Trade War Turbulence The post 7 Stocks Under $7 to Invest in Now appeared first on InvestorPlace.
Apple (AAPL) has partnered with Eli Lily (LLY) to research whether the iPhone and Apple Watch can identify Alzheimer’s and dementia among users.
U.S. equities sliding lower on Friday as renewed concerns about U.S.-China trade relations weighs on sentiment. It also didn't help that this week's Federal Reserve interest rate cut wasn't well received as chairman Jerome Powell downplayed expectations that the 0.25% cut was the start of a prolonged easing cycle. Instead, he suggested it was a mere mid-cycle correction.Source: Shutterstock Not what the cheap money junkies on Wall Street wanted to hear. * 8 of the Most Shorted Stocks in the Markets Right Now Tech stocks seem to be bearing the brunt of the selling pressure so far today, with a number of well-known names taking it on the chin. Here are six tech stocks worth selling right now:InvestorPlace - Stock Market News, Stock Advice & Trading Tips AMD (AMD)Shares of GPU maker AMD (NASDAQ:AMD) are breaking below their year-to-date uptrend with an accelerating decline below its 50-day moving average. Watch for a move down to its 200-day moving average, which would be worth a loss of roughly 14% from here. Analysts at The Benchmark Company recently initiated coverage with a Hold rating on valuation concerns despite strong execution.The company will next report results on October 23 after the close. Analysts are looking for earnings of 18 cents per share on revenues of $1.8 billion. When the company last reported on July 30, earnings of eight cents per share matched estimates on a 12.8% decline in revenues. Fitbit (FIT)Fitbit (NYSE:FIT) shares are lurching to fresh lows, down by nearly a quarter over the past week to cap a 50%+ decline from its late February highs. Not exactly the response the company wanted to the reporting of its latest quarterly numbers on Wednesday, with a loss of 14 cents per share beating estimates by four cents on a 4.8% rise in revenues. The company continues to move downmarket with its average selling price falling to $86 per device as it tries to get out of the way of Apple (NASDAQ:AAPL) on the high end. * 7 A-Rated Stocks Under $10 The company will next report results on October 30 after the close. Analysts are looking for a loss of nine cents per share on revenues of $345.2 million. When the company last reported on July 31, earnings of four cents per share missed estimates by 14 cents on a 4.8% rise in revenues. QUALCOMM (QCOM)Shares of QUALCOMM (NASDAQ:QCOM) are falling away from a two-month consolidation range and look set for a move down to its 200-day moving average, which would be worth a loss of more than 10% from here. The stock has been under pressure since Apple announced it would be purchasing Intel's (NASDAQ:INTC) 5G modem business -- essentially undercutting QCOM's strategy of getting a chokehold on the wireless modem industry.The company will next report results on November 6. Analysts are looking for earnings of 70 cents per share on revenues of $4.7 billion. When the company last reported on July 31, earnings of 80 cents per share beat estimates by three cents on a 12.7% decline in revenues. Salesforce.com (CRM)Shares of Salesforce (NYSE:CRM) are once again testing below their 200-day moving average, threatening to break down out of a multi-month consolidation range going back to February. Next stop is likely to be the November/December trading range near $125, which would be worth a loss of roughly 14% from here. * The 10 Best Stocks to Invest in for August The company will next report results on August 22 after the close. Analysts are looking for earnings of 47 cents per share on revenues of nearly $4 billion. When the company last reported on June 4, earnings of 66 cents per share beat estimates by five cents on a 24.3% rise in revenues. Cisco (CSCO)Shares of Cisco (NASDAQ:CSCO) are falling out of a five-month consolidation range and look headed for a test of multiple lines of support near $51 coinciding with its 200-day moving average and its May/June lows. The company recently acquired Acacia Communications (NASDAQ:ACIA), which sells optical network equipment.The company will next report results on August 14 after the close. Analysts are looking for earnings of 82 cents on revenues of $13.4 billion. When the company last reported on May 15, earnings of 78 cents per share beat estimates by a penny on a 4% rise in revenues. GoPro (GPRO)Action camera maker GoPro (NASDAQ:GPRO) is suffering a nasty 14%+ decline this morning, returning to levels not seen since late December, after reporting disappointing results after the close on Thursday. Earnings of three cents per share missed estimates by a penny despite a 3.4% rise in revenues. The company's GoPro Plus subscription service passed 252,000 active subscribers, up 15% from the first quarter, but ongoing worries about hardware sales and supply chain exposure to China is weighing on sentiment. * 10 High-Yield Monthly Dividend Stocks to Buy The company will next report results on October 31 after the close.As of this writing, the author held no positions in the aforementioned securities.The post 6 Tech Stocks in Trouble Today appeared first on InvestorPlace.
Everyone I know seems to have a Fitbit (NYSE:FIT). But maybe that's just a thing for old white folks.Source: Shutterstock Fitbit issued a terrible, horrible, no good, very bad quarterly report July 29, with miserable guidance. It lost $68.5 million, 27 cents per share, on revenue of $313.6 million and will lose money for the full year.At a stop during a recent walk, the reason was clear. People like Fitbit trackers, but most won't spend up for the smart watch. We also don't take the tracker data seriously. It's like a Tamagotchi for grandpas.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe trackers cost under $100, and the Versa Lite watch retails at $200. The Versa Lite tries to compete with the Apple (NASDAQ:AAPL) Watch, but lacks key features. Apple reported $5.5 billion in revenue from "wearables, home and accessories" during its most recent quarter. They seem to have it figured out. A Fitbit Is Not a Medical DeviceThe problem is that the Fitbit is not a medical device. The company doesn't have enough cash to make it one. If a wearable were classed as a medical device, doctors could prescribe them to patients and huge new market opportunities would open. * 8 of the Most Shorted Stocks in the Markets Right Now Doctors have resisted tracker data from patients, saying wearables lack accuracy. They don't know how to interpret the data and worry about legal liability.This is slowly starting to change.Some doctors have used Fitbit devices to track patients after surgery. There are hints that "one more feature," like blood pressure monitoring, could be a "tipping point" leading to widespread use. But that remains tantalizingly far off. Fitbit is also testing a pulse sensor but has yet to release it.Apple has low-level FDA clearances for its irregular heart rhythm alert and E.C.G. A friend wrote recently that these features helped save his life. Continuous glucose monitors, worn on the skin, can also interface directly with smart phones.The Food and Drug Administration has a software pilot program for wearables, and claims it is trying to develop a "speedy" review process. Apple is working with several start-ups whose apps and add-ons might connect to the Watch but the market breakthrough hasn't happened yet. No More MoneyWhile Fitbit teases its next watch as more Apple-like, integrating with Amazon's (NASDAQ:AMZN) Alexa, it is running out of money.The company reported $335 million in cash in its June report, down from $474 million in December. During the first six months, it lost $147 million, meaning it could potentially run out of money in a year. That's after cutting its research budget. The company has spent $148 million on research over the last six months, down from $176 million a year ago.All this is reflected in the stock price, which has been cut in half since February, opening August 2 at $3.31. Analysts are saying "just sell," calling this a winner take all market that Apple has won. This doesn't mean the game is over. Verily, which is one of the "other bets" of Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), has gotten Class II FDA approval for its EKG monitoring, and is looking at applications in areas like PTSD and Parkinson's. It bought out the intellectual property of Fossil, another smartwatch maker, early this year. But Verily remains a good distance from the market, and Alphabet has the money to be patient. The Bottom LineI bought a Versa Lite during the most recent quarter. I like it. But I don't take it seriously. I use it as a goad to get more exercise and better sleep. It's not a medical device. I don't talk about it with my doctor.Until doctors take wearables seriously, the space won't grow. And Fitbit lacks the cash, and the time, to get into that game.Dana Blankenhorn is a financial and technology journalist. He is the author of a new environmental story, Bridget O'Flynn and the Bear , available now at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in AMZN and AAPL. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 of the Most Shorted Stocks in the Markets Right Now * 7 Charts That Should Concern Marijuana Stock Investors * 8 Monthly Dividend Stocks to Buy for Consistent Income The post Fitbit Stock Is In the Emergency Room appeared first on InvestorPlace.
Even with the bulk of the bounce Nio (NYSE:NIO) shares made in July remaining intact, it's difficult to categorize Nio stock as anything but a disappointment. The current Nio stock price near $3.40 is barely more than half its December IPO price of $6.16, and it looks like China's EV market is starting to slow down. There are multiple reasons for the headwind.Source: Shutterstock Pessimistic analysts and investors have had a field day with the meltdown of the stock, of course, not to mention the very idea that making EVs would be a profitable venture anytime soon. * 7 A-Rated Stocks Under $10 The thing is, none of Nio's story to date is truly surprising. More important, the story could be about to make a turn for the better.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Nio Falls Short of the Unfair HypeIt's one of those secrets few investors are willing to publicly concede, but privately know. That is, sometimes hype gets the better of them.One doesn't have to look very hard to find several relevant examples. GoPro (NASDAQ:GPRO) undoubtedly makes the best action camera in the world. But, as it turns out, the world just doesn't need that many action cameras. Everyone wants to live healthier, but a Fitbit (NYSE:FIT) isn't quite the solution people are looking for.In that same vein, the premise of a rival to Tesla (NASDAQ:TSLA) -- which has admittedly mainstreamed electric vehicles -- sounded compelling.Reality has set in over the course of the past few months, however. The 3,553 EVs Nio delivered in the second quarter of the year isn't even close to being on par with Tesla-like production levels, and nowhere near enough to even put the company within striking distance of profitability.That was never going to happen … at least not yet. Starting a whole new kind of car company from scratch, as it turns out, isn't easy.Matters have seemingly worsened in the meantime. Though demand for electric vehicles in China, where Nio is almost entirely focused, was rock-solid last year, growth in the number of purchases in May fell to only 2% on a year-over-year basis. And that was the last month a $10,100 subsidy was available. It decreased to $3600 in late June.It looks bad.None if this, however, was truly unexpected. The bad news is also largely (albeit not completely) out of the way. Halfway Through the Post-Hype ResetIf the idea rings familiar, it may be because yours truly more-or-less suggested the same thing in May. Specifically, I noted at the time:As we've seen far too often within just the past several months, investors are willing to dive head-first into a euphoric initial public offering based on a story, ignoring the fact that it's a sales pitch. Only afterwards do those pesky fundamentals start to matter, deflating puffed-up public offerings. Nio is the real deal, though. Even analysts expect big things soon. The period between the public offering and validation, however, could be a rough one.It's a scenario that's similar, though not identical to, Tesla's early days … which also required CEO Elon Musk to validate the idea of electric vehicles, figure out the infrastructure and simultaneously make the EVs he was looking to sell. For Nio, at least the proof-of-concept step has been completed.There's still turbulence ahead though. With the end of most of China's subsidies, corresponding higher prices are expected by some to push some of China's EV-related startups into bankruptcy.That may ultimately be a good thing for Nio though, as the only comparable competition in a position to survive China's EV headwind is Xpeng, backed by Alibaba (NYSE:BABA).As time passes and picks off China's wannabe EV players, Nio will get better, and China's consumers will further embrace the more-proven concept of battery powered automobiles. EVs are an inevitable future, even if it's a distant future. Looking Ahead for Nio StockAs I also cautioned in May, the "in the meantime" could prove rather miserable. Although Nio stock has stopped its profuse bleeding from earlier in the year, the recent rebound may or may not be built to last.There's also the not-so-small matter of a tariff war between China and the United States that, despite what some suggest, is hurting China considerably more than it's hurting the U.S. Sales of all vehicles, including combustion-powered vehicles, were down more than 16% on a year-over-year basis in May, but have been negative since July of last year.Meanwhile, Nio hasn't made much of a dent in Europe, and though eyeing the U.S. market, it's done little to prepare for a serious entry into North America.All of those impasses are subject to change in China as they have in the United States.It was wobbly at first, but the EV business in the United States can stand on its own, without subsidies. The charging infrastructure here is now somewhat pervasive; Nio has 300,000 charging stations working to its advantage in China, dwarfing Tesla's charging network. Electric vehicles are also not subject to China's anti-pollution efforts, which limits the number of days a combustion-powered vehicle can be driven during any given week. An end to the trade war could reinvigorate China's economy.It was never going to be a get-rich-quick affair, but here in the dregs of despair, Nio stock might be worth stepping into as a small buy-it-and-forget-it trade.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 A-Rated Stocks Under $10 * 8 Monthly Dividend Stocks to Buy for Consistent Income * 7 Disruptive Biotech Stocks to Buy for 2025 The post Predictable Nio Is Worth a Shot appeared first on InvestorPlace.
Fitbit (FIT) stock was down close to 20.0% in early market trading. It's now trading at $3.38, and it reached an all-time low of $3.27 today.
Fitbit shares nosedive after cutting guidance for the current quarter on the back of its Q2 earnings report. Yahoo Finance's Akiko Fujita and Ines Ferre discuss.