Below is a brief note written by CEO Keith McCullough:
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Still looking to broaden your net SHORT exposure to HIGH BETA stocks during USA’s Quad4 #GrowthSlowing? Wayfair (W) is signaling immediate-term TRADE #overbought within our Retail analyst Brian McGough's Bearish TAIL Risk research view here. Here's an excerpt from McGough's recent Institutional Research note on W's quarter and outlook: "The quarter was decent enough by Wayfair’s ‘will never turn a profit’ standards, but fell far short of what a nosebleed $165 stock needed to see. Rev beat, but it was the smallest in 6 quarters, with upcoming Q guided just ‘in-line’ with investors used to having the growth trajectory pushed higher. You are unlikely to hold a peaky EV/sales multiple doing that. Also, the profit miss this quarter was not expected – as the guide looked very beatable (particularly given management’s borderline cocky confidence on last quarter’s conference call). Oh yeah, W followed it up with a profit guide down for 2Q too. All this is right in line with our Best idea Short thesis that growth is slowing..." Like the US Equity market overall, sell the bounce, KM |
