Last week, three technology firms posted poor results, hurting their share price. Although they erased the post-earnings sell-off, the market’s lift is only temporary. Which of those firms is worth buying?
Lyft lost $1.18 a share as revenue grew by 21.5% Y/Y to $1.05 billion. Active ridership growth is slowing considerably. Lyft is paying too much in share-based compensation, penalizing its investors.
The ride-sharing business model is weak. This is not a safe stock.
Palantir (PLTR) touts its attractive software that fits the military industry. Its promise of billion-dollar contracts is not bearing fruit. In the last quarter, revenue grew by 21.9% Y/Y but it lost a penny on a non-GAAP basis. It paid $140.3 million in stock-based compensation. This is a large portion of its revenue of $477.8 million.
Palantir does not have a product that investors will understand. Customers require more support than Palantir can provide, slowing sales.
PLTR stock is speculation at these levels. It is not a good long-term buy.
Dating firm Bumble (BMBL) posted revenue of $232.6 million. It expects Q4/22 revenue of up to $237 million. Unfavorable foreign exchange rates are hurting revenue. Its Badoo App is dragging its results lower. Fortunately, Bumble’s paying users grew from 2.9 million to 3.3 million. The average revenue is also rising.
BMBL stock is a good trade. Buy it when it dips and sell it the moment it rallies.
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