The last week has been nothing but upheaval for the stock market and the rest of the world. Individuals and governments shook by Russia’s invasion of Ukraine, which may herald the return of a Cold War-era world order. Meanwhile, markets have been highly volatile, as energy prices have risen due to Russian sanctions, and uncertainty about inflation persists.
Trading in the short term is not always a winning strategy, especially in these difficult times
Petco
Petco’s stock has plummeted since news of the omicron variant of Covid-19 hit the information in late November (WOOF). However, this does not diminish the fact that the number of new pet owners has increased since the pandemic. The pet retailer and services company expects to report quarterly earnings on March 8, with Wells Fargo analyst Zachary Fadem expecting an increase.
The analyst believes WOOF will outperform Wall Street consensus estimates, and he believes there is no shortage of long-term monetization opportunities. He stated that industry demand is strong and that investors largely overlook Petco’s stock.
Fadem admitted that supply chain issues, which much of the retail industry felt, will continue to affect Petco.
An “attractive LT entry point considering stable category growth, underlying share gains, and estimates that are likely to move higher. Fadem is ranked 77th out of over 7,000 analysts on TipRanks.
Apple
Apple (AAPL), a company lauded for its growth and consumer penetration, may receive the same positive response for withdrawing its products and services from Russia. It appears that other tech companies are following suit, and investors may understand and quickly digest Apple’s potential losses due to the move.
Wedbush analyst Dan Ives detailed the development, which, according to his calculations, could result in 1% to 2% revenue losses for AAPL. The company has no physical storefronts in Russia and only sells its products through third-party retailers.
The analyst believes that more prominent tech companies will make similar moves in the region. Apple had removed Russian state-owned and propaganda-based apps from its app store and services such as traffic intelligence from its Maps platform.
Airbnb
StoAirbnb (ABNB) reported strong quarterly results last month, solidifying its position as the industry leader. Despite repeated controls on mobility and leisure travel, the company went public in late 2020 and executed its business model.
Now that Covid-19 cases are dwindling worldwide, Airbnb stands to benefit as travel picks up steam. According to Tigress Financial Partners’ Ivan Feinseth, the company can quickly scale and add supply on the cheap. It has been investing in innovations to streamline onboarding for new hosts. Furthermore, the company has demonstrated its ability to adapt to rapidly changing consumer desires and trends, whether long-term stays in rural environments or brief weekend city vacations.
Feinseth upgraded the stock to Buy and raised his price target from $206 to $214.
Despite a year of mandated lockdowns and increased stay-at-home trends, Airbnb managed to generate 78 percent more revenue year over year. While the pandemic may be on its way out, the positive consumer trends it spawned for ABNB are among the company’s most popular. Feinseth, for example, stated that half of the total bookings in the fourth quarter were for seven or more days.
