19.40 -0.05 (-0.26%)
After hours: 7:19PM EDT
|Bid||19.45 x 1000|
|Ask||19.47 x 2200|
|Day's Range||19.33 - 20.78|
|52 Week Range||16.05 - 46.67|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||44.10|
|Earnings Date||Oct 1, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||36.25|
Ah, the startup mania. This market cycle has seen a flood of "unicorns" and other venture-backed companies capture investor attention like Pets.com and other startups did in prior bubble periods. The current drama surrounding WeWork's efforts to go public is a perfect example of a company that at the core is a boring sub-leasing provider but has dressed itself up.Give me a break.These companies are largely not profitable, are burning cash badly and have been focused on razzle-dazzle more than anything. Now, these recent IPO stocks are filtering under the intense scrutiny that the public markets bring. Here are seven that are suffering.InvestorPlace - Stock Market News, Stock Advice & Trading Tips IPO Stocks: Uber (UBER)The biggest of the venture-backed companies to go public this cycle, Uber (NYSE:UBER) shares are languishing beneath their IPO price and look headed for further losses as California passes legislation, headed to the governor's desk, that would force the company to classify its drivers as employees rather than independent contractors. The company will next report results on Nov. 7 after the close. Analysts are looking for a loss of 82 cents per share on revenues of $3.7 billion. Lyft (LYFT)Lyft (NASDAQ:LYFT) shares are also suffering, down by roughly 50% from the company's post-IPO high and crushing through its prior lows set in May. While the company beat arch rival Uber to IPO, both are locked in a seemingly endless cash burn cycle. The company will next report results on Nov. 7 after the close. Analysts are looking for a loss of $1.67 per share on revenues of $912 million. Slack (WORK)Shares of Slack (NYSE:WORK), the provider of an instant messaging system for corporate settings (which is basically a huge time waster) are in a post-IPO free fall, down nearly 40% from the post-IPO high. Worries are surrounding the company, likely due to competitive pressure from Microsoft (NASDAQ:MSFT). The company will next report results Dec. 3 after the close. Analysts are looking for a loss of 8 cents per share on revenues of $155.7 million. Spotify (SPOT)Shares of Spotify (NYSE:SPOT), the music service that had a unique direct listing IPO with lots of hype, is once again trading below its 200-day moving average and is down more than 30% from its all-time high as investors continue to worry about competitive pressures from the likes of Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL). The company will next report results on Oct. 31 before the bell. Analysts are looking for a loss of 32 cents per share on revenues of $1.9 billion. Fiverr (FVRR)Fiverr (NYSE:FVRR), another gig-economy icon, is watching in horror as its share price continues to drop after reaching a post-IPO high of more than $44. As the job market tightens and the freelance economy loses its luster, FVRR stock has fallen by more than 50%. The company will next report results on Nov. 11. Analysts are looking for a loss of 19 cents per share on revenues of $26.1 million. CrowdStrike (CRWD)CrowdStrike (NASDAQ:CRWD), a developer of cloud-based security systems that protects corporations and was founded by former McAfee employees, is seeing its share price drift down to its post-IPO lows. The company will next report results on Dec. 5 after the close. Analysts are looking for a loss of 12 cents per share on revenues of $118.9 million. Concerns center on the company's lack of profitability and trying valuations. Stitch Fix (SFIX)The clothes-in-a-box purveyor Stitch Fix (NASDAQ:SFIX), which went public back in 2017, continues to languish badly as investors realize the company lacks pricing power and is under constant threat of attack from Amazon's efforts in the fashion space. The company will next report results on Oct. 1 after the close. Analysts are looking for earnings of 4 cents per share on revenues of $432.4 million. Keep an eye on active client growth, which turned lower.As of this writing, William Roth did not hold any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post 7 Recent IPO Stocks That Are Melting Down appeared first on InvestorPlace.
Austin-based model and actress Brooklyn Decker, RetailMeNot founder Cotter Cunningham and venture capital firm Next Coast Ventures are all tied to Finery, a New York-based startup that just sold some intellectual property to fashion tech giant Stitch FX.
August was a particularly volatile month for investors. With ongoing US-China trade tensions and recession signals from the bond market, it's not surprising that the S&P 500 posted 11 moves of over 1%. What's more worrying is that it is unlikely the volatility will abate anytime soon. The Cboe Volatility Index remains at elevated levels- and in any case, September is a notoriously difficult month for the markets.So where does this leave investors? Well one option is to tune in to the Street and see which stocks analysts are recommending right now. Here we take a closer look at seven stocks, all with recent bullish calls from Goldman Sachs. Furthermore, as you will see, each of these stocks shows over 20% upside potential from current levels- meaning now could be a compelling time to buy in. Let's take a closer look at which stocks are on Goldman's buy list now: Uber Technologies Inc (UBER)Five-star Goldman Sachs analyst Heath Terry has a buy rating and $56 price target on ride-hailing giant Uber. From current levels that indicates impressive upside potential of 72%. He clearly sees a buying opportunity from Uber’s current weakness. Indeed, the stock is currently trading at just $33- a far cry from its IPO price of $45 back in May. That’s with shares plunging 23% in August after Uber reported a huge net loss of $5.24 billion for Q219. Even without the ‘one-off’ hit of stock-based compensation, the loss still amounted to $1.3 billion- up around 30% from the first quarter. “While there are considerable risks in ownership across the space given the intense competition, regulatory issues, and operating pressures, we continue to believe the risk/reward in owning the leader in this space is favorable and we remain Buy-rated” Terry told investors. Plus Terry did note that Uber’s core ride-hailing business generated $12.19 billion in Q2 gross bookings, beating the estimated $12.11 billion.In total, UBER still earns a ‘Strong Buy’ Street consensus. In the last three months the stock has scored 20 buy ratings and 6 hold ratings. At $55 the average analyst price target falls marginally below Terry’s own estimate, and suggests upside potential of 68%. Micron Technology Inc (MU)Goldman Sachs analyst Mark Delaney recently carried out a slew of tech stock upgrades. And one of the key stocks on his upgrade list was chip maker Micron.“We are now more positive on global memory stocks. ... We believe that Micron’s stock will trade more on memory pricing trends and intermediate term EPS expectations than FY20 earnings,” the three-star analyst said in a note to clients last month. He has a $56 price target on MU, suggesting 24% upside potential lies ahead. Bear in mind that’s with shares already soaring 43% year-to-date. “We now believe that inventory at the memory companies ... is being depleted faster than we previously expected. In addition, we continue to expect the underlying rate of production to fall below longer-term demand growth in 2020,” added Delaney.Overall, MU shows a relatively optimistic take from the Street. That’s with a Moderate Buy consensus based on 13 buy ratings, 6 hold ratings and 2 sell ratings. However the average price target of $48 only suggests 6% upside potential from current levels. CommScope Holding Co Inc (COMM)CommScope Holding helps design, build, and manage wired and wireless networks around the world. It's another stock that Goldman Sachs analyst Mark Delaney has recently boosted to buy. “While we were incrementally positive on the stock after the company reported a 1.17 BTB for 1Q16 with strength in both fiber and mobile, CommScope announced a small cell win on May 2nd that gives us increased confidence on its ability to be successful in this key market for 5G,” the analyst explained. He now has a buy rating on COMM with a $19 price target. Given that the stock trades at just $11, this indicates upside potential of 77%. Delaney also pointed out that the “small cell win implies CommScope is better positioned than we had thought in the $2–$2.5 billion small cell market.”Encouragingly, CommScope also earns a ‘Strong Buy’ consensus from the Street. In the last three months, 8 analysts have published buy ratings on the stock with two analysts staying sidelined. The average analyst price target works out at $20.25. Amazon.com Inc (AMZN)Amazon is another top stock on Heath Terry’s buy list. Year-to-date, the stock has climbed 18%, and Terry sees a further 35% upside for the months ahead. “We continue to believe AMZN represents the best risk/reward in Internet given the relatively early-stage shift of workloads to the cloud, the transition of traditional retail online, and share gains in its advertising business, the long-term benefits of each we believe the market continues to underestimate for Amazon...” the analyst tells investors. Even though the company released mixed Q2 earnings, Terry remains optimistic. He points out that Q2 revenue spiked 20% year-over-year, with North America retail growth driving the revenue outperformance. And despite the surprising deceleration in Amazon’s cloud service AWS, the shift to the cloud remains relatively early-stage and overall revenue growth is still accelerating, says the analyst. Indeed, the Street is now unanimously positive on AMZN stock. In the last three months, Amazon has received 29 consecutive buy ratings. Plus the average analyst price target of $2,286 indicates 29% upside potential. Twitter Inc (TWTR)President Trump’s favorite social media platform, Twitter has just posted strong Q2 results. Alongside stable revenue growth, TWTR is now looking at sequential quarters of impressive engagement growth trends. In particular, analyst Heath Terry noted that Twitter's monetizable DAU growth accelerated to 14% in Q2 thanks to an ongoing slate of product improvements.“Twitter continues to build on ‘Information Quality’ efforts… by moderating unwanted behavior, spam accounts, and low quality tweets through product innovation, acquisition, or more active removal of violating accounts and developer applications,” Terry wrote. “Our ad partner checks suggest that these efforts have generally been well received by advertisers and ... are contributing to incremental ad dollars flowing onto the platform.”“Twitter continues to focus on the relevance of its product for its core user base, particularly on Video where the company highlighted in the first quarter improved click through rates,” he added. As a result, the analyst reiterated his TWTR buy rating with a $52 price target (22% upside potential).The Street is notably more restrained on its Twitter outlook. With only 4 buy ratings, 17 hold ratings and even 3 sell ratings, the consensus is a clear Hold. What’s more, with shares already up 48% year-to-date, the average analyst price target of $41 now falls 3% below the current share price. Alibaba Group Holding Ltd (BABA)Chinese e-commerce giant Alibaba scores 100% buy ratings from the Street. No less than 15 analysts have published back-to-back buy ratings on Alibaba. Meanwhile the average analyst price target indicates 28% upside potential from current levels.One of the analysts singing the stock’s praises is Goldman Sachs’ Piyush Mubayi. This four-star analyst has a $236 price target on BABA, for upside potential of 35%. And following the company’s FQ1 earnings beat, Mubayi reiterated his Conviction Buy rating on shares. “We remain impressed with Alibaba’s overall leverage to China consumption growth given its strategy, positioning, ability to build new businesses (such as new retail) and its execution,” Mubayi said in a note to clients. “We expect Alibaba to continue to invest for future growth on multiple fronts.” “In our view, the continuous investment in cloud technology demonstrates Alibaba’s determination to solidify its leading position in the industry and take up more market share in the future,” he continued. “We believe Ant Financial will continue to be the ‘enabler’ of Alibaba’s New Retail strategy and help the company navigate the globalization road map.” For the fiscal first quarter, revenue growth decelerated 10pts, but still reflected a robust 40%+ Y/Y growth, while EBITDA accelerated 5pts to 34% Y/Y. Stitch Fix Inc (SFIX)Online personal styling service Stitch Fix has a radical data-driven way of selling clothes. It sends clients direct shipments of apparel that have been specially selected through the combination of data science and personal stylists. So far this strategy appears to be paying off. The company has just reported nine straight quarter of mid- to high- 20s% year-over-year revenue growth. And that’s on a $1.6 billion revenue run rate."We upgrade SFIX to Buy from Neutral as we see more compelling risk/reward in the company’s ability to lean into its existing core customer base while also efficiently expanding to new categories and geographies (UK)” commented Terry on July 22. He sees significant opportunities “for further outperformance," boosted by the increase in retail store closures (particularly in apparel).Along with his new buy rating comes a $38 price target- suggesting shares can explode by 99%. Shares have dropped recently on concerns about Amazon’s rival Prime service, but analysts are remaining on-side. “We believe the company’s data science capabilities and brand access are key competitive advantages versus Amazon and other emerging players” said Stifel Nicolaus' Scott Devitt. This Top 100 analyst has also just upgraded SFIX to buy with a $35 price target. Overall the Street has a cautiously optimistic take on SFIX. Its Moderate Buy consensus is based on 4 recent buy ratings vs 3 hold ratings. That’s with an average analyst price target of $37. Discover the Street’s best-rated stocks with the Top Analysts’ Stocks tool
Stitch Fix, the publicly traded online personal styling service, expanded its tech portfolio today with the purchase of digital wardrobe startup, Finery.
On the heels of its second-quarter Source: Jonathan Weiss / Shutterstock.com earnings report last week, Nordstrom (NYSE:JWN) got a much-needed boost. The Nordstrom stock price swiftly went from $25 to $29. But of course, for those who have been long on JWN stock for some time, this was far from enough. The fact is the shares have been a portfolio buzz kill for the past five years. During this period, the return was an average -10% or so. In fact, for the past 12 months, the shares are off over 50%!Keep in mind that the latest earnings report was still not particularly good either. For the most part, it was better than the terrible Wall Street expectations, at least on the bottom line. The decline in earnings per share was less than the consensus forecast.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAnd yes, JWN continues to have struggle ginning up growth on the top line. During Q2, revenues dropped 5% on a year-over-year basis to $3.87 billion. This was the third consecutive decline.The fiscal year guidance also calls for a decline of 2%. Note that the prior guidance was for 0% to -2%. The Real ProblemsSo then what now for Nordstrom stock? Could this be a contrarian play? Or should investors be cautious? * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off Well, there are definitely some positive factors to consider. For example, in the latest quarter, JWN reported much better inventory management (there was a 7% drop on an annual basis), which helped keep costs lower.It's also encouraging that the company has remained focused on being disciplined with growth. There has also been innovation with new formats, such as local stores.Oh, and JWN has a solid digital footprint, which is seamless with the physical stores. About 30% of overall sales come from ecommerce, which is one of the highest among traditional retailers.And of course, the company has the advantages of strong customer service and unique merchandise- which should provide competitive advantages.But unfortunately, such factors may still not be enough. With the relentless drive of operators like Amazon.com (NASDAQ:AMZN), there has been a transformation of consumer behavior.There are also fast-growing startups, like the Stitch Fix (NASDAQ:SFIX) and RealReal (NASDAQ:REAL), that are innovating the market such as with easy access to second-hand goods or the leveraging of AI (Artificial Intelligence) and ML (Machine Learning).No doubt, it does not help that JWN's locations are heavily concentrated in malls, which have seen deteriorating traffic. Because of this, it may not matter much if the company has strong inventory or a solid omnichannel strategy.In the meantime, the leadership structure does not look ideal. It's essentially a committee of three family members that manage different parts of the business and come to decisions via consensus. In today's dynamic world, this appears to be a recipe for slow-moving reactions and initiatives. Bottom Line on Nordstrom StockOn the face of it, Nordstrom stock is trading at bargain levels. Consider that the forward price-to-earnings ratio is 8.3X. There is also a juicy dividend yield, which is at 5.3%.What's more, there could be some near-term catalysts for Nordstrom stock. According to the Wall Street Journal, the Nordstrom family is evaluating the increase in the equity stake from 33% to 50%. This may include a major buyback at a premium to the current stock price.But this does not solve the core problem with Nordstrom stock: growth. Regardless of its investments and innovations, there has been little impact on the top line.In other words, the bull moves may prove to be temporary events.Tom Taulli is the author of the book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off * 7 'Strong Buy' Stocks to Beat Volatility * 7 Mega-Cap Tech Stocks on a Rebound Now The post Recent Moves in Nordstrom Stock Are Just a Dead Cat Bounce appeared first on InvestorPlace.
Scotia Global Asset Management announces August 2019 cash distribution for Scotia Strategic Fixed Income ETF Portfolio
CEO of Stitch Fix Inc (30-Year Financial, Insider Trades) Katrina Lake (insider trades) sold 100,000 shares of SFIX on 08/21/2019 at an average price of $20.55 a share. Continue reading...
The idea of disruptors - single companies that (usually quickly) change the landscape of an entire industry or sector - isn't new. Henry Ford and Ford Motor (F) revolutionized automaking in the early 1990s. Phil Knight's Nike (NKE) forever altered the athletic-shoe industry.In the process, these and other similar game-changers were colossally successful stock picks, shooting higher year after year as they ate the rest of their industry's share.Today, institutional investors with deep pockets still are committing large sums of capital to disruptive technologies. For instance, in Canada, Quebec's largest pension fund - Caisse de dépôt et placement du Québec - recently announced that it would invest up to $2 billion in public-company stocks and pre-initial public offering (IPO) companies with the potential to become leaders in their industries.Here in the U.S., investment managers such as Ark Investment Management LLC, are focused exclusively on disruptive innovation. Ark defines disruptive innovation "as the introduction of a technologically enabled new product or service that has the potential to change an industry landscape by creating simplicity and accessibility while driving down costs." This sounds like the kinds of innovations harnessed by Ford and Nike in their heydays.Today, we'll explore 10 stock picks that have the potential to be disruptors themselves. A few of these are established companies that are delving into new markets, while others are younger companies that are only starting to be a thorn in other companies' sides. Just be cautious. A few aren't even profitable yet, which makes them considerable risks and more suitable for aggressive allocations. SEE ALSO: The 19 Best Stocks to Buy for the Rest of 2019
SAN FRANCISCO, Aug. 20, 2019 -- Stitch Fix, Inc. (NASDAQ:SFIX), the leading online personal styling service, today announced that it will release its financial results for its.
Amazon (NASDAQ:AMZN) wants to sell consumers every product and service for their homes. Naturally, it's gotten into the subscription clothing game by offering Prime Wardrobe to millions of Prime members across the U.S. and elsewhere.One of my favorite disruptors is Stitch Fix (NASDAQ:SFIX), the San Francisco-based clothing subscription service, that uses artificial intelligence and data analytics to fine-tune the apparel that's sent to its subscribers each month. I suspect the two companies may soon go toe-to-toe.InvestorPlace - Stock Market News, Stock Advice & Trading Tips A Little Like Stitch FixPrime Wardrobe allows members to order up to eight items, and try them all on. That sounds a little like Stitch Fix. In late July, AMZN added an extra feature. For $4.99 per month, consumers can get Personal Shopper by Prime Wardrobe. Personal Shopper generates a profile of consumers' preferences in terms of style, brand, fit, and budget, and then sends them curated items in-line with those preferences. That sounds a lot like Stitch Fix.If I had a dollar for every time AMZN took a shot across the bow of an industry or company, I'd be a wealthy man. * 10 Stocks Under $5 to Buy for Fall However, before you go out and buy some AMZN stock, you might want to consider whether Amazon has the chops to take on Stitch Fix.Have you ever bought an expensive clothing item from Amazon? I sure haven't. The fact that I can try Amazon's clothing on at home before paying for it is irrelevant. There's an argument to be made that Amazon is adding the $4.99 service so it can grab even more subscription revenue, regardless if it helps its Prime customers. Seriously, anyone who's getting his or her styling cues from Amazon isn't styling in the slightest, and that's coming from one of the least stylish people on the planet. Is AMZN Any Good at the Apparel Game?RetailWire recently hosted an online discussion about Amazon's $4.99 clothing subscription charge. "The personal shopper addition is definitely a good step to take if Amazon wants to be serious in the subscription fashion space," wrote Dave Weinand, CCO of research firm Incisiv, in the the online discussion last week. "Any opportunity to offer a more curated mix of items will increase chances for conversion and lower returns, "Like a lot of Amazon's moves, the subscription plan is part power play, part marketing research. AMZN has all the time in the world to conquer fashion, so it's starting with an affordable $4.99 monthly service until it can figure out precisely what its Prime customers want. Remember, most of what AMZN does today is carried out through its Prime membership. On the e-commerce front, it doesn't do anything without understanding how each move will affect its lucrative members, which is what ultimately drives AMZN stock.On the downside, the best brands are not going to want to be involved with the project because they're not going to want to be included in a curated group of items which are primarily drawn from Amazon's own boring brands. "This new fashion proposition seems an odd fit for the big, impersonal Amazon brand," wrote Michael La Kier, the principal at What Brands Want, a marketing consultancy. "Not saying they won't have a good business here eventually, but there will be mental hurdles among consumers," he added. The Bottom Line on AMZN StockI'm a big fan of AMZN CEO Jeff Bezos. I think he's brilliant, like Elon Musk. I've been recommending Amazon stock as long as I can remember. I continue to believe AMZN stock could hit $10,000 within the next five years.I also know that Bezos isn't afraid to make mistakes as he builds AMZN into the world's most customer-focused company. So, for now, as Prime Wardrobe's new service gets underway, I'm going to suggest that this latest move by Amazon should not be viewed as the first nail in Stitch Fix's coffin.But the initiative is the first step of the creation of a big revenue generator for AMZN. And that's definitely good news for the owners of AMZN stock.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. 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 Is Amazon Ready to Take on Stitch Fix? appeared first on InvestorPlace.
A look at the shareholders of Stitch Fix, Inc. (NASDAQ:SFIX) can tell us which group is most powerful. Large companies...
The tide is turning for these four stocks, according to the Street’s latest activity. These four stocks have received multiple analyst upgrades recently. Given that analysts usually reiterate recommendations, upgrades are a clear sign of increasing confidence in a company’s outlook. And when more than one analyst makes such a bold move, it’s time to pay attention. With this in mind, let’s take a closer look at four stocks showing particularly bullish signals from the Street right now: Lyft Inc (LYFT)- the light is changing from yellow to greenAnalysts are beginning to change their tune on ride-sharing stock Lyft. Despite the company’s 'awkward' IPO, bitter rivalry with market-leader Uber Technologies Inc (UBER), and current loss-making status- there is still much to celebrate about Lyft says the Street. “We are upgrading LYFT shares to Outperform from Neutral after Lyft exhibited in 2Q19 many of the indicators we had been looking for to get more positive on the story” cheered Wedbush analyst Daniel Ives (a 5-star analyst according to TipRanks) on August 7. He made the call after Lyft reported better than expected active riders, revenue per active rider, ridership, and profitability in its latest earnings report. This “was a major step in the right direction in our opinion towards gaining much needed Street credibility” commented Ives post-report.“Where we once viewed the domestic only nature of Lyft as a detractor, we are beginning to view it as more of a near-term benefit given the execution we are seeing from Lyft in the field around key metrics, as the competitive dynamics domestically are much stronger than they are internationally” the analyst told investors.In particular, Ives noted better operating leverage and a clearer path to profitability. “2018 turns into the peak loss year as Lyft sees y/y improvement in EBITDA losses, a year earlier than expected” he noted. As a result this top analyst bumped up his Lyft price target to $75 from $67 on higher estimates/ multiples. Indeed, on the earnings call, Lyft CFO Brian Roberts suggested that higher prices "will accelerate Lyft’s path to profitability, and further, we believe these price adjustments reflect an industry trend.” Overall Lyft shows a Moderate Buy analyst consensus. That’s with another recent upgrade from Atlantic Equities analyst James Cordwell (a 4-star analyst). He boosted Lyft to Hold from Sell, while raising his price target $8 to $60 post-earnings. FMC Corp (FMC)- putting patent expiry fears to rest If you haven’t heard of this niche stock before, welcome to an intriguing investing opportunity. FMC offers specialty Crop Protection Chemical exposure (~90% of sales, primarily herbicides and insecticides). Although the company currently licenses technology from larger developers, it is now hoping to develop its own Active Ingredients (AI’s) after snapping up DD Crop Protection’s assets.“Given that FMC has key process and formulation patents that protect Rnaxypyr and Cyazypyr through 2025+, along with its well-built infrastructure and option on selling AIs to competitive third parties, our initial fears of competitive generic products are well put to rest” celebrated top RBC Capital analyst Arun Viswanathan (a 5-star analyst) on August 9. “We upgrade FMC to Outperform from Sector Perform, as we had mistakenly thought the patent “cliff” in 2022 would result in a quicker deterioration of sales and EBITDA based on prior patent expiration in health care” the analyst told investors. Instead, FMC noted 16 key process patents that extend the protection date well past 2022. And from 2025, data protection in Europe and government registration timeline in US should extend the timeline even further says Viswanathan. At the same time, as FMC pointed out on its recent earnings call, manufacturing complexity is a high barrier to entry. FMC benefits from cost, scale advantages, and superior execution experience. The analyst also praised FMC for slashing Brazil exposure (already high channel inventories) and focusing on soybeans to benefit from an estimated ~400% soybean demand growth over next the decade. Meanwhile Goldman Sachs analyst Adam Samuelson (a 1-star analyst) upgraded FMC Corporation to Buy while bumping up his price target to $100 from $88. He termed FMC a "unique crop protection pure-play" with robust growth prospects and a "healthy" pipeline of crop protection active ingredients. Samuelson is now predicting that the company will record more than twice the annual revenue growth through 2023 vs other crop chemical stocks. FMC holds a 'Strong Buy' Street consensus. Stitch Fix Inc (SFIX)- the fix is inOnline personal styling pioneer Stitch Fix has received two back-to-back upgrades recently. Both Goldman Sachs and Stifel Nicolaus gave the stock the thumbs up- with prices looking more attractive now SFIX is trading down 20% on a one-month basis.Investors are feeling jittery about the stock after 1) a slowdown in active client growth and 2) threats from Amazon (AMZN). The e-commerce king has just announced that it is expanding deeper into the world of fashion via its new Personal Shopper by Prime Wardrobe service. Although shipping and returns are free, Prime members pay $4.99 to receive the specially selected items. Luckily for SFIX, Wells Fargo notes that the reaction from customers to Prime Wardrobe has so far met only ‘muted success.’ “While this gained some traction, a large number of consumers viewed the experience as overwhelming due to the number of products to choose from (a common issue we believe has held back Amazon’s ability to drive meaningful share in “fashion” apparel)” comments the firm.What’s more, top Stifel Nicolaus analyst Scott Devitt (a 5-star analyst) isn’t concerned about the slowing client growth. He writes “Despite the slowdown in active client growth, we are confident in management’s ability to drive healthy ARPU growth in the intermediate term by continuing to improve keep rates through stronger personalization (Style Shuffle), high-quality client adds, and healthy retention.” Devitt believes that the scaling of the U.K. business represents an additional opportunity for active client growth, as do new features/capabilities. “The ability to buy individual items and the potential to add more items per fix, could support further upside” the analyst tells investors. Rental provides another option to boost growth. On the F3Q:19 earnings call, CEO Katrina Lake said the company was looking at the rental market. At the same time he believes exclusive offers, the scaling of men’s business and shipping efficiencies should continue to benefit growth margins. With a forecast revenue growth of 19% CAGR over the next three years, Devitt has a $35 price target on the stock- marginally below Goldman Sachs' $38 price target. “Although we are forecasting a ~19% revenue CAGR through FY:22, we believe the favorable ARPU trends and the potential for new features/services are increasing the likelihood that Stitch Fix outperforms our revenue growth expectations” the analyst writes. Overall the stock scores a Moderate Buy Street consensus, based on the last three months of analyst ratings. Snap Inc (SNAP)- a newly augmented reality Last but not least comes disappearing photo app creator Snap Inc. The stock has put on a jaw-dropping rally in 2019- exploding over 200% since the beginning of the year. That was helped by the company reporting a solid beat and raise quarter back at the end of July. “Revenue growth accelerated, DAU growth turned sharply positive, Gross Margin expanded nicely & EBITDA loss narrowed materially – a 4- part Summer Cocktail” exclaimed five-star RBC Capital analyst Mark Mahaney (a 5-star analyst) post-earnings. So it is not surprising the stock has also scored several upgrades from the Street. We are talking about upgrades from UBS, Aegis Capital and Summit Redstone Partners- and before that, Goldman Sachs. “Snap's 2Q19 results confirmed our work that led to our intra-quarter upgrade of the stock to Buy from Hold” commented Aegis Capital’s Victor Anthony (a 5-star analyst). Following the results this Top 100 analyst boosted his price target from $17 to $19 (12% upside potential), writing “we continue to be firm buyers of the stock.” Snap's fundamentals have clearly improved, Anthony said, and the improvement is sustainable. This is something the analyst picked up on at the time of the stock’s upgrade where he highlighted Snap’s increasing per-user engagement, increasing advertiser interest, and revenue expansion opportunities. “We walk back our previous assertion that Evan Spiegel should find a buyer for the business - Snap can stand on its own.” Anthony told investors in June. “This is our first Buy rating on the stock since our pre-IPO initiation work, when we were skeptical of Snap's ability to drive user growth, concerned that the ad platform was inferior to competitors in terms of targeting and analytics, and concerned that there was no clear path towards profitability and positive cash flow inflection.”And the analyst makes a valuable point when he adds that “Snap is largely absent from the privacy, antitrust, and regulatory discourse in the U.S. that is increasing the risks to owning FAANG stocks.” Based on 26 recent ratings, analysts have a Moderate Buy consensus on SNAP right now.Visit TipRanks’ Analysts’ Top Stocks tool, to find out which companies Wall Street’s top analysts are bullish on right now.
(Bloomberg Opinion) -- Lyft Inc.’s rocky road as a public company should be a warning for other highfliers hoping to hit it off with stock investors. It is ugly out there for the elite startup superstars. Lyft said in its second-quarter earnings report on Wednesday that the rate of revenue growth slowed less than it had forecast and that losses weren’t as bad as investors expected. Still, even the company’s slightly raised forecast for 2019 revenue growth of as much as 62% would represent a comedown from last year, when Lyft’s revenue was doubling or more year-over-year. Both Lyft and rival Uber Technologies Inc. are posting slowing growth at the same time they’re telling investors that they’re just barely scratching the surface of their potential. Lyft shares were initially higher in after-hours trading following the release of the earnings report but then retreated.(1)Questions about Lyft’s slowing growth, high losses and the general viability of on-demand transportation have pushed its share price far below the $72 at which the company sold stock in its initial public offering in March. Shares of Uber have also been underwater since its IPO. And those two are far from alone in their misery.For all the hype about the post-2008 class of high-profile, highly valued and highly disruptive technology startups, many of the biggest “unicorns” that have gone public so far have been stinking up public stock markets like a skunk waddling into a picnic. In addition to the decline in shares of Uber and Lyft, the prices for Snapchat, Dropbox Inc., Spotify Technology SA and China’s Xiaomi Corp. and Meituan Dianping are also below their IPO levels. For many of the top tier of richly valued young technology companies, the early message from public investors has been clear: If the company’s business model is a string of question marks and there are few public precedents and high losses, stock buyers are not greeting them with open arms. The lackluster performance of the unicorn elites isn’t a great setup for WeWork Cos., Postmates Inc., Didi Chuxing Inc. and others in the crop of still-private startup elite edging to go public soon, with even-bigger-than-Uber-sized doubts about their viability and wild valuations. Many more richly valued startups remain private, so it’s too soon to call the elite unicorn crop a success or failure. But if the top-flight startups are being greeted with skepticism in the midst of an unprecedented decade-long bull market for U.S. stocks, what happens when and if market conditions deteriorate? There are notable exceptions to the public investor shunning of unicorns. Investors are crazy in love with young tech companies that sell software or other products to businesses.(2) The tier of tech startups below the richly valued elites such as Uber — think Zoom Video and Stitch Fix Inc. — have typically fared better than many of the superstars. Pinterest Inc., the online scrapbook, has a familiar advertising-based business model, seems to be managing itself well and has a share price that reflects hopes rather than fears. (A familiar business model hasn’t helped the less competently managed Snap Inc. Even after a wild run-up this year, Snap shares are trading below the price at which the company went public in early 2017.) Even with the declines, there probably aren’t many regrets among the early backers of the elite unicorns. Investors who bought shares of companies such as Lyft and Snap early in their lives have made a fortune. Even stock buyers who bought at significantly higher prices soon before the IPO may feel fine about the investments because they were adding to stakes built earlier or they were making relatively small starter investments for giant investment funds.(3)This underscores why the last decade of startup investing has been so odd. It has been economically rational for investors to pour money into young companies and prod them to grow as big and fast as possible. Even when those startups aren’t home runs if they become public companies, those early backers have done fine, or far more than fine. There are few losers, then. The early backers of elite startups are in the black. Buyers of public stocks can shun the young companies if they are too speculative once they go public. It’s all good — except for the startups themselves, perhaps. They are the ones under the most pressure to figure out how to thrive far into the future. (1) Investors seemed a bit spooked by the company's early end to restrictions on insiders to sell Lyft stock. The company's shares are heavily shorted, which tends to exacerbate stock movements.(2) Slack Technologies Inc. may be trading below its first stock sale in its non-IPO earlier this year, but it has generally been greeted warmly and its stock trades at a rich multiple.(3) Some of the unicorns are still underwater compared with share sales from years ago. Dropbox's per-share price now is lower than private purchase of company shares from 2014. Uber's stock is about even with the the level of 2015 share sales. Snap stock price isn't much higher than private share transactions two and a half years ago.To contact the author of this story: Shira Ovide at firstname.lastname@example.orgTo contact the editor responsible for this story: Daniel Niemi at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Shira Ovide is a Bloomberg Opinion columnist covering technology. She previously was a reporter for the Wall Street Journal.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.