Preparing for March 11 earnings week (SFIX)
Brief overview:
- Earnings after close.
- End of Friday (3/9/2019) had an upturn in the after hours, trading above the VWAP, which indicates an uptrend
- This could be because investors have a good feeling about the earnings on Monday. However, there is no real telling of what can happen during earnings.
- Looking at the 3 year trend, it peaked in September at $53 (as of now, it's trading at around $25.70)
Diving into the charts:
- Huge gains in August:
- Why?
- Analyst upgraded SFIX to a buy
- Retail posted impressive quarterly reports, so overall sector was doing well
- It blew passed analyst estimated in reports for Q3
- Huge plummet from $53 to $22 around Q4 ER:
- Why?
- Q4 results scared off some investors
- Active clients increased only 2% at 2.74 million, missing estimates at 2.81 million
- There was a second plummet in December from $28 to $15.80
- Why?
- The entire market was skiddish
- Their earnings were good, but user growth didn't meet expectations. Active clients increased 7% at 2.93 million, missing estimates at 2.95 million.
- There was a bounce in Jan 2019
- Why?
- Entire market is recovering (and quickly... could be a bad thing?)
- Some investors believe the plummets in 2018 were an overcorrection.
What do I think?
- I'm no expert at reading charts or investing.
- Seeing a sharp increase in price in the after hours seems to make me want to be bullish
- I think SFIX is a long term stock and has a good chance of increasing its price value
- I would buy at open and sell before earnings. I would be weary to hold through an earnings call because anything can happen.
Note
I forgot to mention.What to look for on ER: ACTIVE CLIENT GROWTH
Note
Huge growth on earnings!What a massive jump from $25.70 Monday to $31.63
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.