21.60 +0.05 (0.23%)
Pre-Market: 8:00AM EDT
|Bid||0.00 x 3000|
|Ask||22.11 x 800|
|Day's Range||21.25 - 22.10|
|52 Week Range||13.71 - 27.12|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||26.21|
Shares of the Chinese coffee chain dipping following its first earnings report since its IPO. Luckin posted wider-than-expected losses as it tries to expand rapidly and serve up discounts to challenge Starbucks. Yahoo Finance's Brian Cheung joins Akiko Fujita.
It's been a good year for IPO stocks.The first eight months of 2019 have seen 107 IPOs priced, down about 20% from the same period last year. However, the total proceeds raised add up to $42.5 billion, 23% higher than in the first eight months of 2018.For example, SmileDirectClub, the company that provides in-home teeth straightening at a fraction of the cost, filed its preliminary prospectus Sept. 3. It expects to raise up to $1.3 billion in its IPO selling 58.5 million shares at between $19 and $22 a share, valuing the company at a jaw-dropping $3.2 billion. InvestorPlace - Stock Market News, Stock Advice & Trading TipsGenerally, it's been a seller's market, so you would think there wouldn't be any stinkers. Think again. * 7 Stocks to Buy In a Flat Market Despite a relatively healthy IPO market that's produced an average return of 33% year-to-date through Sept. 3, almost double the S&P 500, several IPOs have wet the bed. Here are what I believe are seven of the worst IPOs in 2019. The Worst IPO Stocks: The We Company (WE)Source: Mitch Hutchinson / Shutterstock.com The first of my worst IPO stocks in 2019 is The We Company, the holding company for office co-working giant WeWork, which currently has 528 locations in 111 cities across 29 countries. Its growth since opening its first location in New York City in early 2010 is mind-boggling. That's the good news. The bad news is that WeWork may never make money. "On the key question of future profitability, it is impossible to tell if WeWork's costs will continue to be double its revenues, or if the per-unit trends justify additional investment," wrote Financial Times contributor Rett Wallace Sept. 3. "Investors relying on the prospectus may have trouble telling what gets more elevated, their consciousness or their blood pressure."WeWork has yet to price its shares, but the cynicism facing this IPO suggests it will be nearly impossible for it to come out of the gate with a positive first-day return. In addition to the fact it loses money, has a nosebleed valuation and relies heavily on CEO and founder Adam Neumann, is the presence of a three-class share structure that will make it virtually impossible for institutional investors to exert any pressure on the company should it continue to lose money for an extended period. While it's not uncommon for tech companies to have a dual-class share structure in place to ensure the founder can maintain a long-term vision, a three-class share structure takes the cake. It hasn't gone public yet and already it has to be considered one of the worst IPOs of 2019. Peloton (PTON)Source: Sundry Photography / Shutterstock.com Peloton, which filed its preliminary prospectus Aug. 28, considers itself to be a technology company that happens to sell interactive fitness machines.In addition to being a technology company, it believes itself to be a media company, an interactive software company, a product design company, a social connection company, an omni-channel retail company, an apparel company and a logistics company. That's like RCI Hospitality Holdings (NASDAQ:RICK), which operates a chain of strip clubs under the name Rick's Cabaret, calling itself a tech company, because, in addition to operating nightclubs, it also operates more than a dozen websites.In a nutshell, Peloton is a company that sells fitness bikes and treadmills between $2,245 and $4.295. Also, it streams classes for these machines for a monthly subscription of $39. In fiscal 2019, it generated $719 million in revenue from the sale of fitness products and $181 million in sales from monthly subscriptions. Including $14.7 million in other revenue, fitness product sales have gone from 84% of its total revenue in fiscal 2017, to 79% in the past year with most of the gains from its monthly subscriptions.Its gross profit margin for fitness products and the monthly subscriptions are 42.9% and 42.7% respectively. However, much like Wayfair (NYSE:W), it has to spend a boatload on marketing to attract and retain customers. As a result of these acquisition costs, Peloton lost $195.6 million before tax in 2019, almost three times what it lost in 2017. * 7 Deeply Discounted Energy Stocks to Buy Just have a look at Nautilus (NYSE:NLS) to understand the risks of investing in fitness equipment. You're far better to invest in Apple (NASDAQ:AAPL) and ride its growth in wearables. Peloton is most likely going to be a dud. Luckin Coffee (LK)Source: Keitma / Shutterstock.com Luckin Coffee (NASDAQ:LK) is China's fastest-growing coffee chain in terms of the number of stores open and cups of coffee sold. It went public May 16 at $17 a share, generating a 19.9% first-day return. Since then, LK stock has gone sideways. They say that you can often pick up an IPO stock for less than its initial pricing within 12-24 months. I have no doubt Luckin is in that category. It's been terribly over-hyped. In mid-August, Luckin reported its first earnings report as a public company. Its results were much worse than expected, sending its stock down by more than 15%.How bad were its second-quarter 2019 results?Luckin was expected to lose 43 cents per share. It lost 48 cents or $49.6 million on $132.4 million in revenue. That means it loses 37 cents for every dollar in sales. In April, Starbucks (NASDAQ:SBUX) CEO Kevin Johnson called Luckin's heavy discounting "unsustainable."Furthermore, while Luckin has only been in business for two years in China, Starbucks has been operating there for the past 20 years and has almost 4,000 stores. As Starbucks plays the long game in China, it has both the experience and financial wherewithal to wait out Luckin. Luckin's IPO is an example of how alluring China is to North American investors. Eventually, that's going to come back to haunt them. Wanda Sports Group (WSG)Source: Juan Carlos Alonso Lopez / Shutterstock.com If you're a triathlete, you've probably familiar with China-based Wanda Sports Group (NASDAQ:WSG), a global sports events, media and marketing platform that owns the Ironman triathlon brand.In late July, WSG went public at $8 a share, raising $190 million by selling 23.8 million shares of its stock. Its stock lost 35.5% on its first day of trading and it's flatlined ever since. WSG is a spinoff of Dalian Wanda Group, the privately held holding company of Chinese billionaire Wang Jianlin, who also owns a controlling interest in AMC Entertainment (NYSE:AMC). Jianlin initially thought Wanda Sports could raise more than $500 million from its IPO. Unfortunately, WSG went public below its IPO target price of $9-$11. Chinese IPOs, in general, have done poorly in 2019. As of the end of July, 11 of the 18 Chinese IPOs this year were trading below their IPO price. WSG is one of those 11. * 7 Best Tech Stocks to Buy Right Now Unlike many IPOs in 2019, Wanda Sports makes money. In 2018, it earned $61.9 million in net income from $1.3 billion in revenue. That's a net margin of just 4.8%, not much better than a grocery store chain. If you are a triathlon athlete, it's probably better to invest in yourself and not the owners of the Ironman. You'll be better for it. Greenlane Holdings (GNLN)Source: Shutterstock Greenlane Holdings (NASDAQ:GNLN) is a leading distributor of vaporization products and consumption accessories in the U.S. and Canada. Its biggest claim to fame is that it distributes Juul and Pax vape pens, two of the biggest manufacturers of vaporizers in the world. That was enough to sell 6 million shares of its stock in April at $17 a share, above the high-end of its pre-IPO pricing. As a result, its stock gained 24% in its first day of trading. However, since then, it's fallen to just under $6, prompting the threat of class-action lawsuits by lawyers across the country who believe the company made several untrue statements in its IPO prospectus. In its Q2 2019 earnings report, Greenlane reported $102.9 million in revenue and a net loss of $21.0 million. On an adjusted basis, it lost $2.6 million in the first six months of the year, a significant decline from a $3.1 million gain a year earlier. On Aug. 8, Greenlane announced that it had signed a deal with Canopy Growth (NYSE:CGC) to be the exclusive distributor of the cannabis company's Storz & Bickel vaporizers.This piece of news has done nothing for Greenlane. The reality is that Greenlane's inventories are growing three times as fast as its sales, which suggests that its ties to cannabis are dubious at best. Uber (UBER)Source: NYCStock / Shutterstock.com In one of the most highly anticipated IPOs in several years, Uber (NYSE:UBER) went public in May at $45 a share, raising $8.1 billion in the process. As I write this, it is trading around $31 a share, 32% below its IPO price. Time to buy? Not by a long shot. Likely, Uber will never make money. In May, just before its IPO, I recommended that investors wait six months before buying its stock to see how it trades. Well, almost four months have passed and nothing good has happened to suggest now is the time to buy. In its first quarter as a public company, Uber reported a GAAP loss of $5.24 billion with about $3.9 billion due to share-based compensation. On a non-GAAP basis, the ride-hailing app's adjusted earnings before interest, taxes, debt and amortization (EBIDTA) loss in Q2 2019 was $656 million, 125% higher than a year earlier. Not quite as bad as $5.24 billion, but still a massive loss for a single quarter. That's especially true when you consider that Uber can do very little to ward off the competition."If I look down at my phone I've literally got six ride-hailing apps on there, and five bike-sharing apps, and drivers are the same -- they'll just go with whoever is busy or wherever they can get the peak pricing," said Aaron Shields, executive strategy director at FITCH, a retail brand consultancy. "The competitors on the market are taking advantage of switching costs -- they're dividing up a market and making it more saturated." * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off Every time Uber and the rest of the ride-hailing apps does something to reduce costs, growth slows, which makes its business model a big loser. Levi Strauss (LEVI)Source: Davdeka / Shutterstock.com As of Sept. 3, Levi Strauss' (NYSE:LEVI) shares had lost 0.2% from its IPO price of $17. What makes this so egregious is that LEVI stock gained 32% in its first day of trading, which means it's lost $228 million of its market cap in the last five months. In March, before its IPO, I gave InvestorPlace readers seven reasons why they should steer clear of Levi's stock. It appears that I was right. One of my biggest concerns was the amount of debt it carried on its books. "Assuming Levi's goes out at a valuation of $5.78 billion, the company's long-term debt of $1.1 billion will be 19% of its market cap," I wrote on March 21. "That's not a massive amount by any means considering it's got more than $700 million on its balance sheet, but I can't help but wonder why it hasn't paid down its debt over the past four years."The other big concern I had about LEVI was its lack of significant growth in Asia. In the first six months of 2019, Levi's had Asian revenues of $474.4 million, 7.1% higher than a year earlier. That accounts for just 17% of its global revenue. Now, I get that it's an iconic U.S. brand, but there are plenty of American brands growing faster in Asia. I believe that the Haas family picked an ideal time to go public for a company whose best days may or may not be ahead of it. 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 * 3 Artificial Intelligence Stocks to Buy * 7 Industrial Stocks to Buy for a Strong U.S. Economy * 3 Beaten-Down Bank Stocks to Buy and Hold for the Long Term The post 7 of the Worst IPO Stocks in 2019 appeared first on InvestorPlace.
Shares of coffee retail giant Starbucks (NASDAQ:SBUX) have been on fire over the past year, rising nearly 80% over that stretch versus a mere 3% gain for the S&P 500.Source: monticello / Shutterstock.com Ostensibly, the huge rally in SBUX stock makes sense. After a multi-year stretch from 2015 to 2018 wherein competition flattened out SBUX's growth trajectory, the coffee retail giant has since regained its groove, and is now consistently topping Street estimates on the only metric that matters in the retail world -- comparable sales.As comparable sales growth has consistently topped analyst expectations over the past year, SBUX stock has taken off like a rocket ship.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAt first glance, it makes a ton of sense. But, upon closer inspection, there are some red flags which make me worried that the big rally in Starbucks stock may be on its last legs. * 10 Stocks to Buy for September What are those red flags? Let's take a closer look. The Fundamentals Appear StretchedThe first big red flag on SBUX stock near $100 is that the fundamentals appear stretched.Everyone is celebrating the fact that management issued guidance which calls for Starbucks to be a 3-4% comparable sales grower and 10%-plus profit grower over the next several years. Sure, those are great growth projections. But over the past five years, Starbucks has averaged 5% comparable sales growth on profit growth that was largely above 15%, and often above 20%.During that stretch from 2013 to 2018, SBUX stock traded around 25-times forward earnings. Today, SBUX stock trades at 30-times forward earnings.See the disconnect? Starbucks projects to grow materially slower over the next several years, than it has over the past several years, yet Starbucks stock is trading at a 20% richer valuation than it has over the past five years.That doesn't make much sense. Indeed, history says a 30-times forward multiple just doesn't work for Starbucks stock. The last (and only time in the past decade) that this stock had a 30-times forward multiple was in 2015. In 2016, SBUX stock dropped more than 7%, while the S&P 500 was up more than 10%. The Optics Could Get Ugly In A HurryThe second big red flag on SBUX stock is that, while the optics remain good today, they could get ugly in a hurry.Right now, everything looks good for Starbucks. Traffic growth has come back into the picture. Comparable sales growth is stabilizing. The China growth narrative appears healthy. Margins are stable. The technology and delivery integrations are working.But I'm worried that all those positives could turn into negatives in a hurry.Positive traffic growth? It could turn negative given that indie coffee shops are still rapidly expanding and McDonald's (NYSE:MCD) is being relentless in its breakfast snack and drink menu expansion. Stabilizing comps? They could decelerate again if traffic growth flips back into negative territory from competition. Healthy China growth? Luckin Coffee (NYSE:LK) is growing very quickly in China, and will only become a bigger threat to the Starbucks China growth narrative over time. Stable margins? Competition could erode pricing power, forcing Starbucks to cut prices to drive traffic, which will weigh on margins.Overall, I see very real and sizable risks on the horizon which could turn today's favorable optics into unfavorable optics rather quickly. The Technicals Imply A TopThe third big red flag on SBUX stock is that the long-term technicals imply that the stock could be peaking here and now. Click to EnlargeSee the attached chart. For the most part, Starbucks has traded within very well defined bands dating back more than thirty years. Breaks above the upper band are solid medium-term selling opportunities. Breaks below the lower band are solid medium-term buying opportunities.Right now, SBUX stock is breaking above the upper band of this trading range. If it continues to rally, it will break a trading pattern which has held true for over three decades. As such, I don't think it will continue to rally, and am worried that the next move in Starbucks stock could be significantly lower. Bottom Line on SBUX StockIt seems everyone loves Starbucks stock right now. But, when I see everyone falling in love with Starbucks stock, I am reminded of the age old Wall Street adage -- stocks advance on a wall of worry, and decline on a slope of hope. * 7 Industrial Stocks to Buy for a Strong U.S. Economy That adage doesn't always ring true. But, in this case, I think it will. There are enough red flags on SBUX stock here to warrant staying away from this red hot stock for the foreseeable future.As of this writing, Luke Lango did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 3 Artificial Intelligence Stocks to Buy * 7 Industrial Stocks to Buy for a Strong U.S. Economy * 3 Beaten-Down Bank Stocks to Buy and Hold for the Long Term The post 3 Big Reasons I'm Worried Starbucks Stock Is About to Go Cold appeared first on InvestorPlace.
There is no universal language of money. Our financial system is more a Tower of Babel, built in conflicting dialects that cause unnecessary friction and confusion. But, like languages, money evolves, continuously reshaped by a mixing of cultures and by new technologies and ideas. Here are the Best New Ideas in Money.
Luckin Coffee Inc. said Tuesday it is planning to launch Luckin Tea as an independent brand, along with a pilot program that would expand its retail partnership model to recruit partners across the globe. The Chinese coffee-shop chain and competitor for Starbucks Inc., which went public in May, said Luckin Tea has enjoyed strong demand since it was launched in April. "To further capitalize on the opportunity in the freshly-brewed tea market, we are strategically launching Luckin Tea as an independent and complementary brand and rolling out the store footprint nationwide," Luckin Chief Operating Officer Jian Liu said in a statement. "We will continue to maintain the high growth of the coffee business, while taking the tea drinks as another important driver to further explore the breadth and depth of the market." Shares fell 1.2% premarket but have gained 2.2% in the last three months, while the S&P 500 has gained 6.6%.
Luckin Coffee Inc. (“Luckin Coffee” or “the Company”) (LK) today announced the launch of Luckin Tea as an independent brand and its brand ambassador Zhan XIAO, as well as a pilot program for its pioneering Retail Partnership model to recruit partners nationwide. “We have experienced strong growth of our Luckin Tea series since the initial launch in April 2019, which is far beyond company’s expectations,” said Mr. Jian LIU, Chief Operating Officer of Luckin Coffee. The Company expects, according to Mr. Jian LIU, both Luckin Tea and Luckin Coffee stores to function in highly complementary roles.
The company announced its treatment for hepatitis B is being investigated in Janssen Pharmaceuticals’ Phase 2b study. The stock has been in a beautiful up-channel this year, doubling since the start of May, and the rising channel top points to $39 next. Luckin Coffee Inc. (LK) popped $1.55, or 8%, to $21.03 on 3.6 million shares on no news reported by the company.
A good rule of thumb in the stock market is to not buy stocks just because they are cheap or low-priced … Cheap stocks (stocks that trade at discounted valuation multiples) are often inexpensive for a reason. The same is true for low-price stocks, or stocks that trade in the under-$10 and under-$20 ranges.As such, when dealing with super-cheap stocks or super low-price stocks, investors should exercise caution. These stocks are at these levels for a reason, and it's not usually a good reason.Having said that, this group of beaten up stocks does offer significant upside potential. These stocks are priced for death. Thus, if anything good happens, these stocks will rise by a lot, and quickly. But you need something good to happen first, and something good only materializes for a handful of these sub-$10 and sub-$20 stocks.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Tech Industry Dividend Stocks for Growth and Income With that in mind, I've put together a list of high-quality stocks in the under $20 bucket that are supported by healthy fundamentals, and have a realistic opportunity to rally in a big way from their current prices. Which stocks made the list? Let's take a deeper look. Luckin Cofffe (LK)Source: Shutterstock Stock Price: $19.48The first stock on this list is freshly public Luckin Coffee (NYSE:LK), the hyper-growth China retail coffee chain which many dub the Starbucks (NASDAQ:SBUX) of China.The core growth narrative here is very favorable. Luckin is the fastest growing and second-largest retail coffee operator in China and is on track to soon become the largest player in the space. At the same time, the China economy is rapidly urbanizing and expanding, and the coffee market in that economy is surging higher, rising by over 30% last year. That makes Luckin the hyper-growth leader in a rapidly expanding market, a combination which ultimately implies tremendous long-term growth potential.The numbers underlying LK stock are equally favorable. Luckin Coffee has a market cap of about $4 billion. Starbucks has a $100 billion market cap. To be sure, Luckin Coffee will never be as big as Starbucks. But, if the company does become a leader in what projects to be a $25 billion-plus China retail coffee market, then today's $4 billion market cap looks like a steal.Starbucks has about 40% market share in the U.S. Luckin can maybe do a 20% share in China. A 20% share in a $25 billion market implies $5 billion in revenue potential. On 10% operating margins and after a 20% tax rate, that equates to $400 million in net profits. A market average 16 multiple on that implies a potential future valuation target of over $6 billion. That's way bigger than $4 billion. Aurora Cannabis (ACB)Stock Price: $5.57In the under $10 category, one of the more attractive stocks to buy is undervalued Canadian cannabis producer Aurora (NYSE:ACB).No matter which way you slice it, Aurora is one of the more undervalued pot stocks in the market. It's cheaper than most peers on a trailing sales basis, forward sales basis, volume basis, and on pretty much every other important operating metric.That relative cheapness in ACB stock comes despite Aurora having many strengths. Aurora is the second-largest player in the Canadian cannabis market behind Canopy Growth (NYSE:CGC), is one of the fastest growers in the market, is behind some of the top-selling products across Canada and has one of the largest production capacities.Why, then, is ACB stock cheap relative to peers? Balance sheet. Cronos (NASDAQ:CRON) and Canopy are loaded up with billion-dollar investments from consumer staples giants, which simultaneously shore up their balance sheets and give those companies ample firepower to grow rapidly. * 10 Companies Using AI to Grow Aurora has no such investment. But if the stock stays this cheap for long, it's only a matter of time before they get a big investment. Also, the company is tapping into the debt markets to raise sufficient capital to compete, meaning that in the big picture, this valuation disconnect has no reason to exist. If it gets wiped out -- as it should -- ACB stock could fly higher. Vipshop (VIPS)Source: Shutterstock Stock Price: $7.90Another hidden gem in the under $10 category is Chinese e-retailer Vipshop (NASDAQ:VIPS).Although China's economy is slowing, it is still growing at a robust mid single digit rate. At the same time, the digital economy remains red hot, with e-retail sales projected to rise 30% this year. Vipshop is at the heart of this robust e-retail sales growth narrative.Further, Vipshop is a discount retailer, and if the U.S. retail landscape has shown us anything, it is that off-price retail is a winning strategy. See the stocks of Ross Stores (NASDAQ:ROST), TJX (NYSE:TJX), Walmart (NYSE:WMT) and Five Below (NASDAQ:FIVE), versus the stocks of Nordstorm (NYSE:JWN) and Macy's (NYSE:M).Thus, Vipshop finds itself at the convergence of two favorable trends. On one end, you have robust growth through expansion of China's e-commerce landscape. On the other end, you have sustained popularity through an off-price retailing strategy.Net-net, that means Vipshop projects as a sustained big grower for the foreseeable future. That sustained big growth should shoot VIPS stock materially higher from today's sub-$10 price. American Eagle Outfitters (AEO)Source: Mike Mozart via Flickr (Modified)Stock Price: $16.19A bunch of mall retailers trade in the under $20 range. But, only one retail stock is really worth buying at these levels and that stock is American Eagle Outfitters (NYSE:AEO).Put simply, American Eagle is a winning retailer. They are succeeding where others are not. American Eagle has transformed into the king of the denim category, and denim has made a strong comeback over the past several years.At the same time, American Eagle's Aerie brand has been one of the hottest stories in retail because the brand has aligned itself with body positivity tailwinds. Because of these favorable dynamics, American Eagle demand has remained resilient in the face of broader mall retail demand turbulence, which has allowed American Eagle to report far better than peer numbers over the past several quarters.The numbers speak for themselves here. American Eagle has rattled off 17 consecutive quarters of comparable sales growth, and 6 consecutive quarters of 5%plus comparable sales growth, including a 6% comp last quarter. * 7 "Boring" Stocks With Exciting Prospects In the overlapping period, peer mall retailers Nordstorm, J.C. Penney (NYSE:JCP), Gap (NYSE:GPS), Express (NYSE:EXPR) and many others pretty much all reported negative comps. The norm was also big gross margin compression. American Eagle's gross margins only fell back 30 basis points.Broadly, American Eagle Outfitters is significantly outperforming its retail peers. This is nothing new. This has been the trend for a long time. It also projects to remain the trend for the foreseeable future. Consequently, if you're gonna buy a mall retail stock in the under $20 category, AEO should be your first choice. Ford (F)Source: Jens Mayer via Flickr (Modified)Stock Price: $8.76The last stock on this list is another stock in the sub-$10 category which has compelling upside in a medium to long term window.We all know Ford (NYSE:F), the U.S. automotive giant that makes great pick-up trucks and a variety of other good cars. Naturally, that sounds like a stable business, since auto demand is fairly stable, and Ford has been a relevant player in that space for what seems like forever.But the narrative supporting Ford stock has weakened over the past several years, mostly because the auto space is shrinking thanks to ride-sharing, and because Ford is losing share thanks to the emergence of electric vehicles.These headwinds are very real. But they are also overstated. Sure, some urban residents will choose to forego car ownership as a result of increased ride-sharing prevalence. But most won't because no matter how good ride-sharing gets, it won't ever parallel the convenience of car ownership.Further, electric vehicles are ramping, but Ford isn't just sitting on its hands while consumption pivots. They are pivoting into the EV space, too, and the company should be able to command respectable EV share at scale.Overall, then, the fears dominating the Ford narrative at present are overstated. Ultimately, they will pass, and when they do, Ford stock will rally from today's depressed levels.As of this writing, Luke Lango was long LK, ACB, CGC, TJX, WMT, FIVE and JWN. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 7 Best Tech Stocks to Buy for the Second Half of 2019 * 7 Top-Rated Biotech Stocks to Invest In Today * 4 Semiconductor Stocks to Sell The post 5 Stocks to Buy for $20 or Less appeared first on InvestorPlace.
Starbucks stock is close to forming a flat base, and has outperformed a market shaken by recession anxieties and the U.S.-China trade war.
Wall Street is getting hit hard on Friday after China announced overnight a new batch of trade tariffs on U.S. imports.President Donald Trump wasted no time responding, hinting on Twitter (NYSE:TWTR) that he is preparing to take action to stop the U.S. dollar's rise to record highs. He added additional criticism at the Federal Reserve as well, who he believes is contributing to the problem with a reluctance to cut interest rates further. * 7 Retail Stocks to Buy on the Dip As a reminder, China responded to Trump's last salvo of import tariffs with an aggressive weakening of their currency -- which then caused the U.S. Treasury to label the country a currency manipulator. Stocks fell hard and fast this morning in response to all this. Here are four that are among the worst affected:InvestorPlace - Stock Market News, Stock Advice & Trading Tips Alibaba (BABA)Alibaba (NYSE:BABA), China's version of Amazon (NASDAQ:AMZN) is down nearly 4% as I write this to cut back below its 200-day and 50-day moving averages. This after stalling out near the prior high set in late July. Shares have been in a long sideways pattern since the trade war kicked off in late 2017 and look likely to revisit the late 2018 lows near $130 -- which would be worth a loss of more than 20% from here.The company will next report results on Nov. 1 before the bell. Analysts are looking for earnings of $10.64 per share. When the company last reported on Aug. 15, earnings of $12.55 beat estimates by $2.09 on a 42% rise in revenues. Luckin Coffee (LK)Luckin (NASDAQ:LK), which is China's take on Starbucks (NASDAQ:SBUX) with a heavy emphasis on preordering and lower prices, looks set to return to its post-IPO lows as the trade war creates a drag on Chinese consumers. The company has no clear path to profitability despite impressive revenue growth as it aggressively expands its store base. Higher prices are likely needed, which undercuts the reason people are visiting in the first place. * 10 Marijuana Stocks That Could See 100% Gains, If Not More The company will next report results on Nov. 14 before the bell. Analysts are looking for a loss of 48 cents per share on revenues of $206.9 million. When the company last reported on Aug. 14, a loss of 48 cents per share missed estimates by three cents. JD.com (JD)Chinese online retailer JD.com (NASDAQ:JD) has stalled out near triple-top resistance around the $32-a-share level. Watch for another test of the 200-day average leading to a violation that could well give way to a retest of the late 2018 lows near $20. Such a move would be worth a loss of roughly a third from here.The company will next report results on Nov. 19 before the bell. Analysts are looking for earnings of $1.18 per share on revenues of $128.1 billion. When the company last reported on Aug.13 earnings of $2.30 beat estimates by $1.76 on a 22.9% rise in revenues. Petrochina (PTR)Shares of China's large energy conglomerate, Petrochina (NYSE:PTR), are in deepening trouble, falling to fresh lows today to cap a 40%+ decline off of the highs set in 2018. This violates the early 2016 lows and returns prices to levels not seen since 2009 as the last bear market was bottoming.Hayman Capital investor Kyle Bass railed against the company on Twitter this week, wondering why the U.S. Securities and Exchange Commission allows the company to be U.S.-listed when it owns the Pacific Bravo tanker, which is carrying Iranian oil against sanctions.As of this writing, William Roth did not hold any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks to Buy on the Dip * 7 Marijuana Stocks With Critical Levels to Watch * 7 Internet of Things Stocks to Buy Now The post 4 China Stocks Getting Slammed as Trump Wages Currency War appeared first on InvestorPlace.
Does stock market volatility have you ready to toss in the towel? My advice is use it to your advantage with IPO stocks Pinterest (NYSE:PINS), Beyond Meat (NASDAQ:BYND) and Luckin Coffee (NASDAQ:LK), where growth has quickly met up with value on the price chart. Let me explain.It's hard to keep up with the broader market's day-to-day gyrations. Wall Street swings from triumphant cheers to worrisome jeers and vice versa. From weak global economic data spooking investors to applause for the delay on levying tariffs on certain Chinese goods, it's hard to keep up with the headlines. * 10 Cheap Dividend Stocks to Load Up On More importantly, please don't forget the names Pinterest, Beyond Meat and Luckin Coffee. One of these stocks could be the next Facebook (NASDAQ:FB), Coca-Cola (NYSE:KO) or even Starbuck's (NASDAQ:SBUX). Bottom line, in today's wild trading environment these three recent IPO stocks are providing investors the opportunity to buy into big-time growth potential at advantageous prices.InvestorPlace - Stock Market News, Stock Advice & Trading Tips IPO Stock to Buy No. 1: Pinterest (PINS)PINS stock is the first of our recent IPO stocks to buy. The super popular web-based visual discovery platform blasted past earnings views and collectively caught investors' eyes as shares exploded higher by nearly 19% in early August.Technically, just over two weeks after reporting and with lots of market turbulence in between, PINS stock has pulled back approximately by 10% from a classic cup-with-handle pattern breakout attempt. This came after scoring fresh all-time highs.It's easy to blame overall market action for the first failure in this IPO stock. Ultimately, it hasn't been a great environment for buying breakouts. But with PINS stock still holding its own technically, there's reason to believe a second attempt will pay investors handsomely. PINS Stock TradeThe recommendation for PINS stock is to put shares on the radar for buying on a breakout above $35.30. That's only likely to occur if the major averages can rally for more than a day and begin to show more convincing signs of bottoming.A second approach for this IPO stock is to buy shares on weakness. I'd recommend looking for a daily chart pivot low to form. Then buy PINS stock on confirmation of a bottom. In order to keep this purchase technically constructive, I'd also make sure the PINS stock price consolidation continues to hold near $31 a share. IPO Stock to Buy No. 2: Beyond Meat (BYND)Beyond Meat is the second of our recent IPO stocks to watch. The alternative, plant-based meats company served up a sizzling, but not "meaty" enough, earnings report a couple weeks ago and word of a below-the-market secondary priced at $160 a share. The combination of reports didn't sit well with Wall Street.Technically, investors immediately punished shares, quickly dismantling BYND stock's uptrend line in free-fall-style price action. Subsequent pressure now has this first-to-market innovator testing its 50% Fibonacci level for support. BYND Stock TradeWhen will the selling pressure in this IPO stock abate? It's hard to know. But given that BYND stock is now well beneath the secondary pricing and testing a key retracement level, this deep pullback is worth monitoring for a bottom to emerge. * 10 Stocks Under $5 to Buy for Fall My advice is for investors to wait for a weekly reversal candlestick to be confirmed before entering into a long position. With this strategy, bulls will give up some immediate profit in this highly volatile IPO stock. More importantly, the approach should allow investors to buy growth at a discount and avoid being grilled for entering too quickly. IPO Stock to Buy No. 3: Luckin (LK)Luckin Coffee is the last of our IPO stocks that's setting up to buy. I'll credit InvestorPlace's Luke Lango for alerting me to this China-based upstart and its promising path to substantial longer-term returns for investors.It's true, Luckin Coffee does have its work cut out for it. The company is competing against the aforementioned coffee powerhouse Starbucks, which has already successfully penetrated this massive overseas market. But still, the opportunity is there. And as Luke notes, with a solid technology-based focus and an eye-popping sales growth runway that's affirming this IPO stock's toehold is working, LK stock is one to pick up on weakness. LK Stock TradeLK stock is testing its 50% and 62% Fibonacci levels and its lower Bollinger Band. Shares are also oversold based on the position of its stochastics indicator. However, this week's earnings-driven breakdown of trend support shouldn't be entirely dismissed. It could be a slippery path to retest this IPO stock's all-time-low near $14 a share. Anything is possible.My recommendation on LK stock is to wait for a daily chart bottoming candle to be confirmed if shares can maintain a bid above $18.75. This allows for a modest bit of wiggle room beneath the 62% level. That also respects exiting the position on a more convincing failure of this key technical support in anticipation of a more durable purchase at deeper and well-chilled levels of investor anxiety.Investment accounts under Christopher Tyler's management currently own positions in Pinterest (PINS) and its derivatives, but no other securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post 3 Recent IPO Stock Pullbacks Worth Watching appeared first on InvestorPlace.
Luckin Coffee reported second-quarter results and the company is "very happy" with its performance, Shakel said on CNBC. The company looks to separate itself from rival Starbucks Corporation (NASDAQ: SBUX) by not only selling beverages at around half the cost but prioritizing takeaway and delivery, he said. Luckin is guiding investors to hit store-level break-even profit as soon as the third quarter 2019, he said.
Luckin Coffee earnings were mixed for Q2, the first quarterly report for the Starbucks rival in China since its May IPO. Luckin Coffee stock fell.
Luckin Coffee (LK) is a fast-growing Chinese coffee chain. It was founded two years ago, and since then, it's opened thousands of stores in China.
Luckin Coffee (NASDAQ: LK ) reported second-quarter losses of 48 cents per share, which missed the analyst consensus estimate by 5 cents. The company reported quarterly sales of $132.43 million, which ...
China’s second-largest coffee chain behind Starbucks reported underwhelming second-quarter earnings. Revenue jumped 648% but it lost 96 cents a share, much deeper than the 43 cents analysts had expected.
Shares of Luckin Coffee Inc. sank 5.5% in premarket trading Wednesday, after the China-based coffee retailer reported a wider-than-expected second-quarter loss and revenue that soared more than 7-fold but came up short of analyst projections. The net loss for the quarter to June 30 was RMB1.21 billion ($176.9 million), or RMB6.56 a share, compared with a loss of RMB1.13 billion, or RMB2.88 a share, in the year-ago period. The average estimate of analysts surveyed by FactSet were expecting a loss per share of RMD3.07. Total revenue rose to RMB909.12 million ($132.43 million) from RMB121.51 million, but was below the FactSet consensus of of RMB940.3 million. Average monthly transacting customers rose 411% to 6.2 million and average monthly items sold grew 590% to 27.6 million, while total number of stores increased 375% to 2,963. The stock, which started trading on May 17, closed Wednesday 44% above its initial public offering price of $17. The stock has gained 20.5% since it closed at $20.38 on its first day of trading, while the S&P 500 has gained 2.3% over the same time.