Last Friday, Cardlytics (CDLX), an advertising platform in banks’ digital channels, soared by 77.15% to $14.50. Despite its high valuations, weak growth, and poor profitability prospects, it has strong momentum.
Cardlytics posted revenue of only $89.2 million, up 8.1% Y/Y. It earned 14 cents a share (non-GAAP). CDLX stock is a good trade for this morning but is not an investment. Its long-term debt is $30.07 million.
Groupon (GRPN) lost 30.7% when it posted a disturbing $1.77 a share. Revenue fell by 14.1% Y/Y to $514.91 million. The firm does not have a sustainable business model. Its discount offering creates a mania of buying traffic for its clients. However, businesses do not win customer loyalty, losing money in the process. GRPN stock is a good short-sell candidate.
Jabil (JBL) dropped by 16.5% last Friday. The firm has solid growth and profitability prospects. It earned $1.68 a share (non-GAAP). However, revenue fell by 16.7% Y/Y to $6.77 billion. The firm expects to post $1.65 to $2.05 a share in earnings in Q3 and $8.40 a share in FY 2024.
JBL is a good stock for investors. In addition, Celestica (CLS), Fabrinet (FN), and Samina (SANM) are Jabil’s peers worth considering.
In the clean energy sector, avoid Babcock & Wilcox (BW). Shares fell by 22.66% when the firm reported a 65-cent Q4 GAAP loss. Revenue fell by 3.9% Y/Y.
