Stocks may only fall for so long before rebounding. Last week, Redfin (RDFN) added $0.75 to close at $7.15. It unexpectedly raised its Q2 revenue guidance.
In the first quarter, Redfin posted a net income of -$66.8 million. Its adjusted EBITDA of -$27.6 million did not deter buyers. Redfin’s revenue increased, benefiting from strong performance from each of its business segments.
In Q2, Redfin expects revenue growing by between 4% and 8%. However, it expects to lose between $28 million - $34 million. Traders will ride the rebound but would not hold the stock for the long term.
iRobot (IRBT), which Amazon (AMZN) is no longer buying, posted a $1.53 EPS loss. Shares gained 20.65% last week on a relief rally. Short-sellers bet against the stock for too long, holding a 30.64% short float. This is similar to the short squeeze on Zim Integrated Shipping (ZIM). ZIM stock gained 36.6% last week.
Sea Ltd. (SE) is the third speculative stock to consider. The Singapore-based e-commerce firm will post results on May 14, 2024. Barclays set an $85 price target, expecting gross merchandise volume to continue growing. It grew by 28% in the fourth quarter.
After SE stock rallied in 2024, cautious investors might want to wait until after the earnings report. Investors already priced in high expectations on its results.
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