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Zacks Analyst Blog Highlights: NVIDIA, Walmart, Dropbox, Shake Shack, and Roku

For immediate release

Chicago, IL – February 18, 2022 – announces the list of stocks featured in the analyst blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. Stocks recently featured in the blog include: NVIDIA NVDA, Walmart WMT, Dropbox DBX, Shake Shack SHAK, and Roku ROKU.

Here are highlights from Thursday’s analyst blog:

Growth assessment gets crushed

Further selling plagued the regular trading session again on Thursday, sending us on another downtrend for the week. Headlines from news sources all week have been rising tensions on the border with Ukraine, which President Biden says “believes” will lead to a Russian invasion in the coming days. But there are also other factors at play here.

First, the numbers: The Dow suffered its worst trading day of 2022 today, falling -622 points (albeit off -668 points at the session low) or -1.78%. The Nasdaq, now down -15% from its November highs, was -2.88% on the day, while the S&P 500 was -2.12%. The small cap Russell 2000 lost much of its recent gains, -2.46% on the day.

The Nasdaq’s tumble, especially against the Dow Jones and the S&P, suggests that it’s not just the Ukraine crisis that’s weighing on markets: there’s a valuation squeeze currently compressing even top-tier growth companies. order — Nvidiafor example, after another strong beat-and-raise quarter yesterday, lost -7.5% on Thursday. walmarton the other hand – flat year-over-year and -4% year-to-date – rose +4% in an otherwise dismal trading day. To learn more about WMT earnings, click here.

Basically, investors are reframing what they expect from the current market environment, and to some extent that makes sense even if we subtract the Ukrainian strains. Indeed, as the Fed is now expected to raise interest rates by half a point in mid-March (with up to six additional quarter-point hikes by the end of the year) and drain the $9 trillion balance sheet from ASAP, market players now recognize that we’re now in a very different trading environment, and they’re ready to take some air on even some of the hottest growth names promising.

And the earnings reports continue:drop box announced fourth-quarter revenue and earnings beats: 41 cents per share vs. 37 cents expected on $566 million in sales, above the Zacks consensus of $557.6 million and +12% growth. one year to the next. The company also announced a $1.2 billion share buyback program and has never missed a consensus earnings estimate in its publicly traded history. Shares of Dropbox had risen more than +9% on the news, but again wallow in negative territory late in the session.

Shake Shackdid even worse, despite a beating on net income (a loss of -11 cents per share against expectations of -17 cents) and a meeting at the top (at $203 million). The fact that the forecasts are somewhat lowered explains part of this sale, as does this compression of valuations mentioned earlier; the -9% decline burns most of last month’s +12.7% gains. Same-store sales for the quarter came out at +20.8%, in line with expectations.

And Roku, after falling more than -10% in the regular session, continued to fall in after-hours trading another -7% on worse-than-expected revenue numbers in the quarter: $865 million against $894 million forecast. Paid users were slightly higher than expected, as was average revenue per user (ARPU). Active accounts in the quarter increased by +17%, but hours watched decreased per account. The shares were already at -38% since the start of the year.

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Past performance is not indicative of future results. The potential for loss is inherent in any investment. This document is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold any security. No recommendation or advice is given as to whether any investment is suitable for any particular investor. It should not be assumed that investments in the securities, companies, sectors or markets identified and described have been or will be profitable. All information is current as of the date hereof and is subject to change without notice. The views or opinions expressed may not reflect those of the company as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management of securities. These returns come from hypothetical portfolios composed of stocks with Zacks Rank = 1 that have been rebalanced monthly without transaction fees. These are not the returns of actual stock portfolios. The S&P 500 is an unmanaged index. To visit for more information on the performance figures displayed in this press release.

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