|Day's range||22.54 - 22.54|
The Zacks Analyst Blog Highlights: JD.com, MercadoLibre, Alibaba, Wayfair and Carvana
Investing is easy when everyone is uneasy -- just embrace the opportunities created by our general discomfort.
Wayfair's (W) second-quarter results are likely to reflect strong customer demand amid the coronavirus pandemic.
Some of the stocks that have more than doubled in 2020 -- yes, doubled -- aren't going to cool down in the month ahead.
Roku is one of several controversial stocks set to announce earnings results over the next few trading days.
All signs point to a strong sales and profit announcement on the way from the online home furnishings seller.
Wayfair (W) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
(Bloomberg Opinion) -- School districts nationwide are beginning to announce their reopening plans for the coming academic year. The policies vary widely, with Atlanta and Los Angeles saying that school would be entirely online and, New York, the country’s largest district, opting for a mix of in-person and digital learning.Of course, the primary tragedy of resorting to these non-traditional approaches to education amid Covid-19 is that it punishes students, who deserve a more immersive and social learning experience, and their parents, who badly need kids to be in school so they can get back to work. But the regional aspect of rules guiding school reopenings has another unfortunate side effect: It creates supply challenges for retailers as they try to drum up sales during the crucial back-to-school shopping season. Deloitte projects that $28.1 billion will be spent on back-to-school items this year, roughly flat compared to 2019. The consultancy estimates that stronger spending on technology will largely offset steep reductions in spending on clothing and traditional back-to-school supplies. But imagine how much this spending could vary by city or county depending on how school is being conducted in each place. Clothes, lunchboxes and backpacks will probably remain on shopping lists in jurisdictions where children are going to school in person. In districts where schooling is only virtual, there will be little reason to load up on those products but strong incentive to buy laptops, tablets, headphones and other technology for digital learning. When many adults started working from home in the spring, companies such as Wayfair Inc. and West Elm parent Williams-Sonoma Inc. noted that sales of home office furniture jumped. You could imagine a similar wave of purchasing of desks, tables and comfy chairs for kids now that they are potentially settling into this model for the long haul. It’s a similarly muddled picture for back-to-college spending, given that colleges and universities are all over the map about whether they are welcoming students back to campus. How many shower caddies or size twin XL sheets should Bed Bath & Beyond Inc. stock if loads of students aren’t living in dorms?This emerging patchwork of policies will make it hard for retailers to allocate inventory and target discounts effectively. Some chains may be able to manage this better than others. Target Corp., for example, has been working for years to localize its product assortments in other ways, such as to offer regional craft beers or an expansive selection of baby gear in a neighborhood with lots of young families. The retailer, in theory, could apply that strategic framework to this problem. But the school reopening situation is so fast-moving and fluid, that simply won’t be easy to do. Try as retailers might to get the right inventory in the right stores, I suspect many are going to end up with loads of gear they couldn’t sell and still other items they struggled to keep in stock. Those that have a well-developed ship-from-store operation for online purchases may have some advantage in smoothing out demand imbalances. The back-to-school shopping season was already going to be difficult for the retail industry before it became clear that it would look so different in various parts of the country. Vastly more of the spending will move online, either for delivery or curbside pickup, as consumers remain cautious about visiting public spaces. Gap Inc. has said its online sales were up more than 100% from the previous year in the month of May, while Macy’s Inc. said e-commerce sales surged 80% in the same period. That growth will almost certainly cool off somewhat in summer and fall now that physical stores have reopened. But the fact remains that department store and specialty apparel chains must adapt their workforces and merchandising strategies with these preferences in mind. It doesn’t help that Amazon.com Inc. has postponed Prime Day, a sale event that has typically happened in July that other retailers have piggybacked on. That deals bonanza had appeared to pull some back-to-school spending earlier. Without it, and with so much uncertainty about what school will look like, retailers could see shoppers postpone these purchases until late summer or early fall – a pattern they didn’t plan for. And, of course, a soaring unemployment rate means many shoppers are carefully minding their household budgets. The back-to-school shopping season is going to have to be one of improvisation for the retail industry. At least it will give them practice for the even-more-important holiday season, which also is going to have to be dramatically reimagined this year. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Sarah Halzack is a Bloomberg Opinion columnist covering the consumer and retail industries. She was previously a national retail reporter for the Washington Post.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
With the coronavirus still keeping many at home, e-commerce is booming, and online retailers Etsy (NASDAQ: ETSY) and Wayfair (NYSE: W) have benefited from the recent surge. *Wayfair's cash includes a $535 million capital raise after the end of Q1.
(Bloomberg) -- E-commerce stocks have been among Wall Street’s standout performers during the pandemic, but the group’s massive share-price gains could be at risk if their results fail to live up to elevated expectations, analysts said.Online retail has seen a surge in demand as the coronavirus shut down brick-and-mortar rivals. As a result, many stocks have doubled, tripled or seen even larger gains since March, when shelter-in-place orders were issued across the U.S. Often, the rally far eclipses the degree to which analysts have been raising their expectations for sales growth.“Many e-commerce companies are now priced for perfection, and while they have this fundamental tailwind, the moves have been based more on momentum than fundamentals,” said Brian Yarbrough, a consumer analyst at Edward Jones, in a phone interview. “People have piled into names that are seen as COVID safety plays, and the advances have been awfully fast and awfully big. I’m not sure how many will be able to justify the moves; you’d have to see very outstanding results for further upside.”Among specific stocks, eBay Inc. is up 120% since a March low, while Shopify Inc. has climbed 195% and Etsy Inc. has more than tripled. Amazon.com Inc. is up about 80% from its own March low, a rally that has added roughly $660 billion to the company’s market capitalization -- a gain that is by itself larger than all but five components of the S&P 500.Other names have seen even more pronounced moves, with Wayfair Inc. up more than 800% and Overstock.com’s rally topping 1,500%.For 2020, all have vastly outperformed the S&P 500, as well as retail overall.There’s no dispute that the pandemic has been good for online sales. Bloomberg Intelligence calculated that the penetration of digital U.S. retail sales “could double by 2024,” a trend accelerated by coronavirus-related store closings. Citi also expects online retail will continue to gain share. While total U.S. retail sales “are expected to be only 1% above 2019 levels” in 2022, “e-commerce is expected to increase 43%” while brick-and-mortar retail falls 4%, the firm wrote, citing eMarketer forecasts.Despite that rosy outlook, Citi also cautioned about the rallies in names like Wayfair. Last month, it wrote companies that “benefitted from the shelter in place orders” are the group “that makes us most nervous.” Citi’s biggest question is: “will COVID-19 cause a large enough secular shift in demand to justify the multiple expansion?”Wayfair is scheduled to report second-quarter results in early August. Currently, Wall Street is expecting revenue of $3.87 billion for the home-goods retailer in the quarter, which would translate to year-over-year growth of about 65%. While the consensus has risen nearly 40% over the past three months, according to data compiled by Bloomberg, the ratcheting up of expectations has not kept up with the stock. The average analyst price target for Wayfair is about $186, or 13% below its share price.The average targets for Etsy and eBay are also below the share price. For Amazon, the degree to which the share price exceeds the average target is near a multi-year high.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Retail foot traffic sees a speedy dip with the recent spurt in coronavirus cases. Shoppers are again avoiding stores, raising doubts over retail recovery while strengthening the e-commerce craze.
(Bloomberg) -- Digital advertising platforms run by Google, Amazon.com Inc. and other tech companies will funnel at least $25 million to websites spreading misinformation about Covid-19 this year, according to a study released Wednesday.Google’s platforms will provide $19 million, or $3 out of every $4 that the misinformation sites get in ad revenue. OpenX, a smaller digital ad distributor, handles about 10% of the money, while Amazon’s technology delivers roughly $1.7 million, or 7%, of the digital marketing spending these sites will receive, according to a research group called the Global Disinformation Index.GDI made the estimates in a study that analyzed ads running between January and June on 480 English language websites identified as publishers of virus misinformation. Some of the ads were for brands including cosmetics giant L’Oreal SA, furniture website Wayfair Inc. and imaging technology company Canon Inc. The data exclude social-media and online-video services, so the true total is likely much higher.“This report is flawed in that it neither defines what should be considered disinformation nor are its revenue calculations transparent or realistic,” a Google spokesperson said.The company doesn’t check whether websites are publishing truthful or accurate information before running ads. However, the internet giant reviewed 10 articles highlighted by the study where Google ads ran. It demonetized five of the web pages, meaning it removed the ability to make money from ads. “Google has strict publisher policies designed to prevent harmful, dangerous and fraudulent content from monetizing. We also continue to take an aggressive approach to COVID-19 content that makes harmful medical claims contradicting the guidance of global health authorities,” the spokesperson added. Amazon did not respond to requests for comment. Governments and health officials are still learning more about the virus, and this has allowed misinformation to flourish online. Silicon Valley giants have pledged to crack down, and Alphabet Inc.’s Google has removed ads from sites that violate its policies. However, GDI thinks these platforms need to do more to limit the spread of misinformation.“The difference between what the companies say publicly about their dedication to not monetizing hate speech and harmful content, especially around the pandemic, is not matching up with what our data is telling us that’s actually happening,” said Danny Rogers, co-founder of the Global Disinformation Index.In an ad delivered on May 19 by Amazon, a L’Oreal product was promoted on Americanthinker.com next to an article titled “Is Big Pharma Suppressing Hydroxychloroquine?” Earlier this month, Google served up a Bloomberg News ad on the website Bigleaguepolitics.com, according to the GDI report.The Global Disinformation Index is a U.K.-based research group that provides disinformation risk ratings on media sites all over the world. GDI said it presented Google, Amazon and OpenX with the latest findings from its report and none of the tech companies provided a formal response. The group updates its research weekly and often tells tech companies when their platforms place ads on misinformation sites.The research group releases this information, in part, as a way to alert advertisers when their marketing spots show up on this kind of website. These brands can help by pulling ads from tech platforms when they see issues like this, Rogers said.(Updates with no comment from Amazon in sixth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The first half of 2020 contained some of the biggest market moves investors have seen in years. Wayfair shares hit a 2020 low of $23 in March but have surged almost $200 per share during the subsequent rebound. Investors had some good reasons to worry about the online home-furnishings retailer early in the year.
A handful of large-cap companies with a favorable Zacks Rank have skyrocketed more than 100% YTD, defying coronavirus-induced economic devastations.
Here are seven top-ranked stocks to capitalize on the coronavirus crisis induced stay-at-home trend amid fears of a second wave with no vaccine yet in sight.
Coronavirus-led lockdown has accelerated the online shopping trend and this will help the boom in e-commerce to continue in the second half of 2020
The coronavirus pandemic has made life difficult for businesses that rely on in-store traffic and those that sell products and services that aren't considered essential. Viemed Healthcare (NASDAQ: VMD) is a company that sells ventilators, so it's no surprise that it's been soaring this year, up over 50% year to date as the S&P 500 has fallen 4%. There's been concern that there may not be enough ventilators to help patients with COVID-19.
The Zacks Analyst Blog Highlights: Workhorse Group, Veritone, Microvision, Energy Focus and Wayfair
Square (NYSE: SQ) and Wayfair (NYSE: W) are in different industries, but they share the common goal of allowing people to do things online that they used to have to do in person. For now, though, things seem to be working in Wayfair's favor.
Shares of online home-goods retailer Wayfair (NYSE: W) were trading higher on Wednesday afternoon, as the company geared up for a major Fourth of July sale. As of 3 p.m. EDT, Wayfair's shares were up about 12% from Tuesday's closing price. Despite a steep decline in March amid the outbreak of COVID-19 in the United States, Wayfair's stock has gained more than 140% since the beginning of 2020.