Ambastha Financial LLC

By Kuldip K. Ambastha

On Friday, March 31, 2023, the stock price of Nikola Corporation (NKLA), an American vehicle and energy solutions company, declined by -13.6% per share. The company announced plans to raise $100 million through a secondary stock offering, priced at $1.12 per share. The funds will be used for working capital and other general needs. The pricing of $1.12 per share implies that Nikola is struggling even more than investors already knew. The high point of the stock’s 52-week range is $10.88 per share, a sharp contrast with the $1.21 closing price on Friday.

Keywords – Nikola Corporation, Nikola, NKLA, vehicle, energy solutions, secondary stock offering, working capital, general needs, struggling, contrast.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in NKLA.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2023 – Ambastha Financial LLC.

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By Kuldip K. Ambastha

The stock price of First Republic Bank (FRC), a financial institution, continues to have a bumpy ride, per the table above. (See past coverage if needed: “What Caught Our Attention in the Investment World? – Week of March 13-17, 2023; By Kuldip K. Ambastha.”) Continued turmoil among American regional banks alongside worries in European institutions did not help matters. Skeptics are concerned about the ability of First Republic to originate mortgage loans and retain client bank deposits. Also, uncertainty around American governmental support for First Republic clouds the picture further.

Keywords – First Republic Bank, First Republic, FRC, financial institution, American, European, mortgage loans, bank deposits, government.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in FRC.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2023 – Ambastha Financial LLC.

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By Kuldip K. Ambastha

Per the table above, the stock price of First Republic Bank (FRC), a financial institution, had a bumpy ride with three negative and two positive daily returns seen during the trading week. In the recent past, financial institutions have come under investor skepticism related to balance sheet exposures, non-diversified client bases, and other reasons. An alliance of eleven American banks has come together to pledge $30 billion in uninsured deposits so that First Republic Bank can meet client withdrawal requests. First Republic Bank, a regional bank chartered in California, has suspended its cash dividend and is alleged to be in talks to raise more cash through private share sales. It remains to be seen if First Republic Bank will succeed in calming investors.

Keywords – First Republic Bank, First Republic, FRC, financial institution, balance sheet, client base, uninsured, deposits, withdrawals, regional bank, cash dividend, private share sales, calming.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in FRC.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2023 – Ambastha Financial LLC.

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By Kuldip K. Ambastha

During the past trading week, the stock of Silvergate Capital Corporation (SI), a banking platform focused on the cryptocurrency industry, saw five straight days of negative returns – the largest of which was a sharp -42.2% decline on Thursday, March 9, 2023. Since 2022, Silvergate has been faced with clients withdrawing money to weather the storms seen in the cryptocurrency segment. Eventually, the withdrawals led to losses taken from a rapid fire-sale of securities administered to meet client withdrawal needs. Silvergate had tried to avoid a shutdown, but in the end had to stop its banking activities and liquidate its lending arm. Silvergate was once hailed as an innovative bank, but now is yet another failed institution brought down by a run on the bank by its clients.

Keywords – Silvergate Capital Corporation, Silvergate Capital Corp., Silvergate Capital, Silvergate, SI, banking, bank, cryptocurrency, clients, securities, withdrawals, lending, innovative, failed, run on the bank, bank run.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in SI.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2023 – Ambastha Financial LLC.

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By Kuldip K. Ambastha

On Friday, March 3, 2023, the stock price of Samsara Inc. (IOT), an American Internet of Things (IoT) company focused on the industrial sector, surged by +15.4% per share. From the perspective of revenues, the latest quarter and full-year figures disclosed came in higher than Wall Street expected. Samsara has seen strong recurring revenue figures, indicative of solid customer demand. From the viewpoint of earnings per share (EPS), a -$0.02 EPS figure was seen in the latest quarter. This EPS value exceeded expectations, but bear in mind it is still a negative earnings number.

Keywords – Samsara Inc., Samsara, IOT, Internet of Things, IoT, technology, tech, industrial, revenues, customers, demand, earnings per share, EPS, negative, Wall Street.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in IOT.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2023 – Ambastha Financial LLC.

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By Kuldip K. Ambastha

On Friday, February 24, 2023, the stock price of Autodesk, Inc. (ADSK), a software corporation, fell by -12.9% per share. While Autodesk’s latest quarterly results were relatively strong, its future guidance on earnings and free cash flow worried Wall Street. Autodesk is moving from offering multi-year contracts (with cash all paid up front) to an annual billing cycle for clients. Only time will tell if this billing process change will impair Autodesk. For now, Wall Street seems concerned.

Keywords – Autodesk, Inc., Autodesk, ADSK, software, earnings, free cash flow, billing, Wall Street.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in ADSK.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2023 – Ambastha Financial LLC.

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By Kuldip K. Ambastha

On Friday, February 17, 2023, the stock price of DraftKings Inc. (DKNG), an American fantasy sports contest and sports betting company, rose by +15.3% per share. The company had a strong 4Q2022, with revenue growth alongside an improved financial forecast for the year of 2023. For the quarter, DraftKings exceeded expectations by having a -$0.53 earnings per share (EPS) figure compared with a Wall Street consensus forecast of -$0.59. In 2023, the company is now expecting less of a loss than before, paired with a path to profit in 2024. Corporate leaders have made strong expense management a priority, and this will lead to improved earnings before interest, taxes, depreciation, and amortization (EBITDA) going forward.

Keywords – DraftKings Inc., DraftKings, DKNG, fantasy sports, sports betting, 4Q2022, 2023, 2024, revenues, earnings per share, EPS, forecast, loss, profit, expense management, earnings before interest, taxes, depreciation, and amortization, EBITDA.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in DKNG.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2023 – Ambastha Financial LLC.

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By Kuldip K. Ambastha

On the trading day of February 9, 2023, the stock price of Credit Suisse Group AG (CS), a Swiss financial institution, fell by -15.6% per share. (See past coverage if needed: “What Caught Our Attention in the Investment World? – Week of October 24-28, 2022; By Kuldip K. Ambastha.”) Credit Suisse’s 4Q2022 results were less than ideal, with a negative earnings per share figure (-$0.50) reported, and its wealth management arm has struggled mightily with outflows from an assets under management perspective. For the full year of 2022, the institution disclosed a loss of $7.9 billion. Credit Suisse may need to be overhauled massively to regain the confidence of investors.

Keywords – Credit Suisse Group AG, Credit Suisse Group, Credit Suisse, CS, Switzerland, Swiss, financial institution, 4Q2022, earnings per share, wealth management, assets under management, 2022, loss, confidence, investors.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in CS.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2023 – Ambastha Financial LLC.

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By Kuldip K. Ambastha

On the trading day of Friday, February 3, 2023, the stock price of Nordstrom Inc. (JWN), an American retail company, rose by +24.8% per share. One of the biggest and most prominent non-insider shareholders decided to increase his stake in Nordstrom Inc., potentially in advance of a reformist, shareholder activist campaign. This shareholder has not initiated talks in recent days with the leadership of Nordstrom Inc. That said, potential reforms may include personnel changes at the board level. The company’s next earnings report will be on Thursday, March 2, 2023.

Keywords – Nordstrom Inc., Nordstrom, JWN, American, retail, reform, activism, personnel, board, price, earnings.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in JWN.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2023 – Ambastha Financial LLC.

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By Kuldip K. Ambastha

On the trading day of Monday, January 23, 2023, the stock price of Wayfair Inc. (W), an e-commerce company focused on furniture and home goods, rose by +26.8% per share. To close out the trading week on Friday, January 27, 2023, the stock price rose another +13.4% per share. The stock price has been quite volatile in recent years, but Wall Street is currently impressed by Wayfair management’s commitment to cost-cutting measures. Most prominently, the company has announced it will lay off 10% of its total workforce. The lay offs combined with other cost-cutting efforts may lead Wayfair to deliver positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) sooner in 2023 than previously expected.

Keywords – Wayfair Inc., Wayfair, W, e-commerce, furniture, home goods, cost-cutting, lay offs, EBITDA.

Disclosure – The principals and clients of Ambastha Financial LLC have no positions in W.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2023 – Ambastha Financial LLC.

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