Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Carvana (NYSE:CVNA) and the best and worst performers in the online retail industry.
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Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Carvana (NYSE:CVNA) and the best and worst performers in the online retail industry.
Consumers ever rising demand for convenience, selection, and speed are secular engines underpinning ecommerce adoption. For years prior to Covid, ecommerce penetration as a percentage of overall retail would grow 1-2% annually, but in 2020 adoption accelerated by 5%, reaching 25%, as increased emphasis on convenience drove consumers to structurally buy more online. The surge in buying caused many online retailers to rapidly grow their logistics infrastructures, preparing them for further growth in the years ahead as consumer shopping habits continue to shift online.
The 5 online retail stocks we track reported a slower Q2. As a group, revenues beat analysts’ consensus estimates by 0.8%.
Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation. However, online retail stocks have held steady amidst all this with share prices up 4.2% on average since the latest earnings results.
Best Q2: Carvana (NYSE:CVNA)
Known for its glass tower car vending machines, Carvana (NYSE:CVNA) provides a convenient automotive shopping experience by offering an online platform for buying and selling used cars.
Carvana reported revenues of $3.41 billion, up 14.9% year on year. This print exceeded analysts’ expectations by 4.6%. Overall, it was a strong quarter for the company, with EPS exceeding analysts' expectations. In addition, free cash flow significantly improved.
Carvana Total Revenue
Carvana Total Revenue
Carvana achieved the biggest analyst estimates beat of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 2.3% since reporting and currently trades at $130.20.
Is now the time to buy Carvana? Access our full analysis of the earnings results here, it’s free.
Revolve (NYSE:RVLV)
Launched in 2003 by software engineers Michael Mente and Mike Karanikolas, Revolve Group (NASDAQ: RVLV) is a next generation fashion retailer that leverages social media and a community of fashion influencers to drive its merchandising strategy.
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Jim Cramer Says He Likes This Nancy Pelosi Portfolio Stock 'Very Much:' And This AI Play Is Reasonably Valued Than High-Flier Nvidia
Jim Cramer Says He Likes This Nancy Pelosi Portfolio Stock 'Very Much:' And This AI Play Is Reasonably Valued Than High-Flier Nvidia
Jim Cramer Says He Likes This Nancy Pelosi Portfolio Stock 'Very Much:' And This AI Play Is Reasonably Valued Than High-Flier Nvidia
Shanthi Rexaline
Tue, September 17, 2024 at 10:03 PM GMT+5 4 min read
In This Article:
AVGO
-1.23%
NVDA
-1.34%
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Chipmaker Broadcom Corp.'s (NASDAQ:AVGO) shares, which began to rally at the start of 2023, have been going through a consolidation phase since topping out in late June. The stock has found itself a fan in CNBC Mad Money host Jim Cramer.
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What Happened: Stephanie Link, chief investment strategist and portfolio manager at Hightower Advisors, has bought Broadcom shares, said Cramer in a post on X on Monday. More than the disclosure about Link's Broadcom buy, what caught the attention of social media users was Cramer's comment about his disposition toward the stock. Broadcom, he said, is "a stock I like very much...."
Some social media users poked fun at Cramer by reminding him about the negative psychology he has on stocks. "It's up $30 (21%) or so in 5 days after a dip and it's near all-time highs, then Jim endorses it...," one of his followers said.
Broadcom Living Up To Hype? Broadcom, which was largely flying under the radar once, has now risen to prominence with its artificial intelligence foray. The company is now the 11th most-valued global corporation, boasting a market capitalization of a little over $766 billion. Incidentally, it has the highest market cap among techs outside of the Magnificent Seven, minus Tesla, and TSMC.
This semiconductor and infrastructure software products manufacturer recently reported third-quarter results that thumped Street estimates, thanks to strong AI revenue and solid performance of its VMware business. The San Jose, California-based company also raised its AI revenue guidance for the fourth quarter and the full year. Despite the results ticking most boxes, the slightly light fourth-quarter guidance sent the stock tanking a little over 10% immediately after the results.
Since then the stock has come back up, thanks to its nearly 20% rise from its post-earnings low.
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Mark Cuban Asks Elon Musk He Can Directly Question Him About Kamala Harris' Economic Policies, But Wants This In Exchange
Ananya Gairola
Updated Tue, September 17, 2024 at 1:36 PM GMT+5 3 min read
Billionaire investor Mark Cuban has extended an invitation to Tesla and SpaceX CEO Elon Musk to engage in a direct discussion about Vice President Kamala Harris’ tax policies and approach.
What Happened: Over the weekend, Musk shared a user’s post on X, formerly Twitter, that criticized Cuban’s stance on taxation. The post alleged that Cuban, a frequent communicator with Harris’ campaign, advocates for higher taxes for the top earners in the US.
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In response, the “Shark Tank” star offered Musk the chance to directly question him about Harris’ policies. He also asked Musk to share his insights about the Republican candidate Donald Trump in return.
Earlier this month, Harris revealed plans to implement a 25% tax on unrealized capital gains for individuals with a net worth exceeding $100 million. At the time, Cuban appeared on CNBC’s “Squawk Box” saying that Harris has no plans to tax unrealized gains.
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“I'm not going to speak for the vice president, she makes the final decision,” he stated, adding, “I'm talking to these folks three, four times a week, having back-and-forth conversations, and their verbatim words to me is, ‘That's not where we want to go.'”
Why It Matters: This latest development comes in the wake of concerns raised by Kevin O'Leary, chairman of O'Leary Ventures, about the potential negative impact of Harris’ tax policies on the U.S. economy.
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