When stock prices fall after the company posts quarterly results, investors should be wary of buying them.
Post-pandemic fad Teladoc (TDOC) is a stock to avoid. In Q2, it lost $0.28 a share as revenue fell by 1.5% Y/Y. The virtual healthcare platform withdrew its guidance for 2024. It also took a $790 million goodwill impairment charge related to cash flow estimates from its BetterHelp unit.
In the Chinese EV sector, avoid Li Auto (LI). The firm reported an impressive 51,000 units in record delivery in July. Fierce competition will lead to higher losses the more units Li sells. Similarly, Zeekr (ZK) is a stock to avoid. The stock traded as high as $32.24 after its IPO and is more than half price off. Its software collaboration with Mobileye (MBLY) did not impress markets.
Retailer Etsy (ETSY) is on a sustained downtrend. It posted disappointing revenue growth of 3% Y/Y. Consolidated GMS also fell by 2.9%.
In the mining sector, lithium prices continue to weaken on poor EV prospec Albemarle (ALB) reported a non-GAAP EPS of just $0.04 in Q2. It lost $1.96 a share.
Bausch Health (BHC) posted Q2 results that failed to allay investor fears. The firm has $535 million due in 2025. Markets worry that the firm will not produce enough cash flow to manage debt at higher interest rates.
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