The nearly closed Strait of Hormuz is lifting oil and gas prices, along with chemical prices. Investors should be bullish on energy firms like Chevron (CVX) and LyondellBasell (LYB), a chemical producer.
Chevron enjoyed a rally nearly throughout July. In Q2, it earned $6.06 as revenue increased by 56.2% Y/Y to $70 billion. The firm has a solid management team whose underlying stock offers a stable dividend. Its developments in Venezuela are a growth tailwind.
LyondellBasell has a good chance of retaking its $83.94 high for the year. The company posted revenue of $9.18 billion (+19.8% Y/Y). The “forever war” in Iran will likely lift chemical prices.
In Q2, EBITDA topped $2.1 billion. The CEO said that the company estimated around six million tons of polyethylene capacity damage in the Middle East supply. That will not restart until at least 2027. That creates higher prices for its products.
In the gaming sector, avoid Roblox (RBLX). On July 30, shares lost 26.85%. CEO David Baszucki said that bookings growth was within its guidance but below its internal goal.
The company decided to force a digital age check on its platform. The age check penetration rose to 57% globally.
Investors punished the stock for its cut in bookings. That will result in fixed cost deleveraging. Higher costs for AI-powered initiatives, plus higher infrastructure costs, will pressure Roblox’s profits.
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