The best advice is the yawn-inspiring, time-tested, 'effective-since-the-advent-of-the-stock market' approach, and it's no secret.
It's diversification.
I know what you're thinking: quit wasting my time with this boring stuff!And I get it - you've probably heard the 'diversification' bit a million times. But I'd argue that the concept of diversification isn't boring at all.
Nordstrom issued a weaker-than-expected sales growth guidance for fiscal 2021. The luxury department store chain projects a revenue growth of +25%, compared to the Refinitiv analyst consensus of +26.6%. According to Nordstrom’s estimates, digital sales would account for 50% of its revenue. It predicts EBIT will be positive and the leverage ratio will be about 3 times by year-end. Over the...
Aircraft maker Boeing will start outsourcing a substantial amount of its information technology work to Dell Technologies. This is expected to eliminate 600 jobs at Boeing (around 10% of its workforce) - according to a message that Susan Doniz, Boeing's vice president for IT and data analytics, sent to employees, according to the Seattle Times. Last year, Boeing eliminated 20,000 jobs, and...
On Thursday, Ford said it will cut production of its F-15 pick-up truck at two plants due to a worldwide shortage of computer chips. The F-150 is a big moneymaker for Ford . The automaker said that its Dearborn Truck Plant in Michigan will reduce to one shift from three for a week starting Monday. Truck production at its Kansas City Assembly Plant in Missouri will drop to two shifts from...
Biogen posted fourth quarter adjusted earnings of $4.58 a share, which is lower than Bloomberg analyst consensus forecast of $4.80. The biotech company’s revenue for the quarter fell -22% year-over-year to $2.85 billion. The analyst consensus was $2.8 billion. Biogen’s guidance on net income of $17 to $18.50 a share for this year is below the average analyst forecast of $25.09 (according to...
Kohl's shares got a rating upgrade from analysts at Cowen. Cowen analyst raised their rating on the department-store chain to outperform from market perform. They also boosted their price target on the stock to $52 a share from $39. "Mix is pivoting toward more productive and millennial-focused categories as active should grow to 30%, partnership with Sephora LVMUY is likely a game changer,...
Millions of Americans worked remote in 2020, and many moved to an entirely different state to do so. I heard numerous stories of New Yorkers heading to Montana or Idaho to escape the city during Covid, and to enjoy lockdown in the mountains. Sounds dreamy. But there may be a catch, and that catch involves something everyone dreads: taxes. Indeed, for workers who chose to move temporarily to a...
A small Northern California space-transportation company, called Astra Space Inc., is ready to blast off (in the figurative sense). The company is positioned to be the first small rocket-maker to go public in the United States, via SPAC, with an approximate valuation of $2.1 billion. Astra Space's capabilities set it apart in the burgeoning space industry. The company is designing small...
Let's be honest: for every story published about a new millionaire minted by the GameStop and AMC fiasco, there were twice as many people on the losing side of the trade. Steep declines off GameStop's $400+ peak have arguably hurt more people than the short-lived gains helped. This week, participants on online forums suggested that a buying spree of silver could generate big GameStop-like...
On Tuesday, shares of sports gambling platform DraftKings jumped, following news of ARK Next Generation Internet ETF’s purchase of 620,300 shares. Run by fund manager Cathie Wood, ARK Next Generation owned 620,300 shares - nearly $34 million - of DraftKings as of Feb. 1. On Sunday, analyst Mike Hickey raised his price target for DraftKings shares to $66 from $60. Hickey has a Buy rating on...
On Tuesday, Uber Technologies Inc. said it agreed to acuire beer and wine delivery service Drizly for $1.1 billion. In the cash-and-stock deal, Drizly and its 1,400 U.S. locations will be part of Uber Eats division. But customers will be able to access the Drizly app. The deal is expected to close within the first half of 2021. Uber expects that more than 90% of the consideration to be paid...
United Parcel Service reported a -$3 billion loss for the fourth quarter, but adjusted earnings were well above Wall Street estimates. The package delivery company’s adjusted earnings came in at $2.66 a share, compared to the $2.14 a share expected by analysts polled by FactSet. The figure was also higher than the $2.11 in the year-ago quarter. But including $5.6 billion in charges related to...
Many gaming companies are struggling due to the restrictions on occupancy in public buildings. Large casinos have had to operate with considerably lower floor traffic than they are used to and would like. The earnings and revenue estimates for the industry have been ratcheted down as a result of the restrictions. The stocks get hit hard during the first quarter of 2020, but most are trading...
Stocks with high short interest or high short interest ratios have been all over the news this week, thanks to the insane rallies from Gamestop (GME) and AMC Networks (AMCX). The crazy jumps in those two stocks have caused additional interest in almost all stocks with high short interest ratios. A number of stocks have rallied more than 20% simply because they have higher short interest than...
American Airlines reported earnings last week, and to no one's surprise, it lost a ton of money -- $2.2 billion for the quarter, to be exact. This marked a negative earnings-per-share (EPS) of -$3.86 for the quarter, losses not unlike those being felt across the airline industry. But the stock soared on the news. There may be two reasons for this: Forecasts for American's earnings were to...
Tesla's meteoric rise over the last couple of years has disconnected the company's share price from its fundamental value, in my view. Consider that Tesla is still a barely profitable company whose market capitalization exceeds all other major US, European, and Japanese auto companies combined. What's more, Tesla's sales are just 1/50th of the other major automakers. Enter General Motors...
Chinese electric-vehicle maker XPeng announced that it will recall 13,399 G3 electric sport utility vehicles. This is its first vehicle recall since it was introduced to American exchanges in August. The company will recall 13,399 G3 electric sport utility vehicles due to an inverter issue that may cause the vehicle to lose power and lead to a safety risk, according to China's State...
Twitter got a rating upgrade from analysts at KeyBanc, on expected long-term revenue growth. Analysts at KeyBanc boosted their rating on the microblogging company’s shares to overweight (from sector weight), saying they expected long-term revenue growth to be driven by the platform’s improvement in the experience for advertisers and users. "Our view is that execution is improving, and the...
Cryptocurrency Dogecoin was at $0.057410 at 10 a.m. ET Friday, according to Coingecko, up around 150% on the day. This followed a Reddit board discussion about making it the cryptocurrency equivalent of GameStop. The price eased from $0.070755 late Thursday when it had experienced a jump of 800% in just 24 hours Dogecoin started out as a 'joke' cryptocurrency based on a popular internet meme...
Dolby Laboratories Inc. posted fiscal first-quarter results that surpassed Wall Street expectations. The audio technology company’s earnings came in at $1.30 a share, compared with 47 cents a share in the year-ago period. Adjusted for one-time items, Dolby’s earnings were $1.48 a share, compared with 64 cents a share a year ago. Analysts polled by FactSet expected a GAAP EPS of 80 cents a...