Amazon has had a history of making announcements that decimate adjacent markets. They’ve acquired Whole Foods & crashed Kroger, they’ve acquired PillPack & crashed CVS + Walgreens, and they’ve had other retail announcements in the past which have clobbered other retailers. In most cases, each of the “oh shit, Amazon …” stories has been a …
Category Archives: Overreaction
Walgreens Off A Comfortable 13% on Earnings
Walgreens (WBA) announced results where they slightly missed top line revenues & missed earnings. Net income fell to $1.16 billion, or $1.24 a share, from $1.35 billion, or $1.36 a share, in the same period a year ago. Excluding nonrecurring items, the company said adjusted EPS declined 5.4% to $1.64, below the $1.72 that FactSet …
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CNBC Scary Headline of the Day
The stock market reaction to this sort of headline Stocks rapidly give back gains on report China walking back trade concessions was quite bullish. By the time the digital ink had dried (was it ever wet?) the market once again traded higher. And stocks which would be impacted heavily by an escalating trade war like …
Retail Fail
Kroger’s quarter bombed on lower sales, lower guidance, and lower profits. A triple lindy trifecta of pure winning. I traded the dead cat bounce on it for a quick gain. Shares were down about 12.8% when I bought & around 10% when I sold. “Its shares slid 11.6 percent in morning trade after it also …
As Seen on YouTube!!!
Sector rotation continued yesterday with some emerging market plays like Ctrip up big, bring up other smaller parallel plays like MakeMyTrip. Despegar might be a higher leverage way to play OTAs in emerging markets, though the sort of “national champion” model promoted by China & which India aims to emulate will likely provide a greater …
Zillow Flips Upward on Home Flipping Story
For the past couple quarters Zillow has slid after reporting quarterly results. The big themes on the slide were the erosion in the growth rate of their core business (selling ads to Realtors) coupled with new (perceived?) risks to their business from adding new business lines including lending and home flipping. In after hours on …
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EA – it’s in the Game
So much for the game market being destroyed. Two days later and it is as if the poor quarter from EA never even happened. Activision (ATVI) hasn’t recovered anywhere near the degree EA did, Nintendo (NTDOY) is not far from 52-week lows, Take Two Interactive (TTWO) hasn’t regained much of what they lost & NetEase (NTES) is still off …
EA Weak Quarter
EA turned in a weak quarter, which caused their stock to slide 15% & also hit Activision / Blizzard for a 10% decline while the Nintendo ADR was off 6%. I traded in and out of both EA & ATVI for quick small gains & am holding a bit of Nintendo + Activision / Blizzard. …
AbbVie Dead Cat Bounce
AbbVie missed earnings estimates on the top & bottom line, causing their stock to slide over 6% Friday. I traded in and out of it 3 times for small gains & still have a position in them going forward. President Trump signed a bill re-opening the federal government for 3 weeks, which should help relieve …
PETS Bombs
PetMed Express reported earnings which missed on both the top line & bottom line, causing their shares to fall about 12% in pre-market trade. Almost immediately after the market opened up shares ramped up hard in a bull trap, which had shares up above $23 each within 45 minutes of open. They were only down …