Investors seeking bargains should start with companies falling the most this morning. The over-reaction creates a chance to get stocks at cheap prices before they snap back.
British American Tobacco (BTI) lost 8.21% in pre-market trade. It took a massive $31.5 billion write-off in the value of its cigarette brands this year. Specifically, it will write off its acquisition of U.S. combustible brands such as Camel and Newport. Strangely, this is based on a very long-term 30-year assessment of the asset value.
BTI expects sales growth at the low end of its forecast at 3% to 5%.
In the technology sector, MongoDB (MDB) is -5.14%. It raised its full-year guidance and earnings per share of $2.89 to $2.91. This is sharply above the previous forecast of $2.27 to $2.35. Markets are selling on the news. Still, the company has a negative 10% operating margin and excessive stock compensation. Wait for a further drop before considering MDB stock.
File-sharing firm Box (BOX) lost 11.88%. The firm posted a non-GAAP EPS of $0.36. Revenue rose by 4.8% Y/Y to $262 million. Box expects FY2024 non-GAAP EPS of $1.42 to $1.43.
Yext (YEXT) slumped by 16.4%. The firm posted revenue of $102.1 million, +1.9% Y/Y. It expects Q4 non-GAAP EPS of $0.07-$0.08. Yext is an exception to the bargain buy. It has no catalyst and is not a good investment.
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