Analysts had expected a 3.1% rise, according to Refinitiv IBES data. Target expects fourth quarter comparable sales to fall in the range of a low single-digit percentage. Target halved its fourth-quarter operating margin rate forecast to about 3%, due to expectations of bigger holiday discounts across categories, as well as a rising amount of theft and organized crime in its stores. "It was a precipitous decline (in discretionary demand), and frankly, we've seen those trends in the early part of November as well," said Christina Hennington, Target's chief growth officer. Then again, profitability looks to be many years off."Clearly it's an environment where consumers have been stressed," Target Chief Executive Officer Brian Cornell said.Ī pullback in consumer spending has hit Target the hardest among major retailers as its product mix weighs more toward discretionary items such as clothing, home furnishings and electronics, prompting it to discount heavily to clear excess inventory.Įven with those discounts and the inflation rate easing in October, Target executives said consumers were rapidly giving up discretionary purchases to focus on household essentials. With 947.3 million shares outstanding, it's going to be extremely difficult for the company to ever produce meaningful earnings per share. Being able to sell this diagnostic system means it's a revenue-producing company now.Īlthough Zomedica is swimming in cash, it's also issued more than 305 million shares of stock since the year began. The one tangible positive for Zomedica is that it's begun commercial sales of Truforma, its point-of-care diagnostics system for cats and dogs. The company also caught the eye of retail investors in early February, leading to that aforementioned FOMO euphoria that pushed its penny stock share price into the stratosphere. It should be noted that Baskin was compensated for this video mention. It began in January, when the company received a boost following a namedrop on a YouTube video by Tiger King star Carole Baskin. The bad news is that most of Zomedica's gains, as with GameStop, aren't anything worthwhile.
Over the past six months, shares of the company soared by nearly 1,260%. Lastly, shareholders of clinical-stage veterinary drug and diagnostics company Zomedica ( ZOM 6.89%) have a lot to be thankful for. Though GameStop's healthy cash position means it's not going to disappear, its lack of momentum on the operating front suggests its share price will eventually head much lower. Total sales declined 21% last year, and the company's key to getting back to profitability involves closing stores and further cutting costs.
Unfortunately, GameStop's operating results don't come close to supporting its current valuation. This made it the perfect target for a short squeeze. Back in mid-January, no publicly traded company sported higher short interest than GameStop. Since the middle of January, predominantly young and novice investors on Reddit's WallStreetBets chatroom have been banding together to buy into companies with high levels of short interest. The vast majority of GameStop's gains over the past six months have been tied to short squeezes and FOMO (fear of missing out) euphoria. The closest thing to a positive that can be said about the company is that e-commerce sales grew by 191% in 2020 and 309% during the holiday season. While I'd like to say there's a fundamental or rational reason behind GameStop's ascent, there really hasn't been. A prescient investment in the gaming retailer six months ago has returned more than 1,800%. I know, what a shock, right? It shouldn't be surprising in the least to find video game and accessories retailer GameStop ( GME 1.63%) on this list, considering it's the hottest large-cap stock of 2021.
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