It's Earning Season, Again!
- Knowfee Inc.
- Jan 31, 2021
- 6 min read
Knowfee is issuing buy orders on the following assets that are reporting earnings next week. We identified these assets for a number of unique reasons, but all follow our investment mandate of focusing on high growth industries with disruptive technologies. Never invest all of your assets into any short-term market opportunities, it's important to stay disciplined, diversified, and focused on the long term portfolio objectives while maintaining your core portfolio holdings.
If you follow the Knowfee Investing 101 portfolio set up, you will recall that 20% of our overall portfolio is tactically allocated to take advantage of short term market opportunities that present themselves during periods of volatility or major press releases. Knowfee will be utilizing this Tactical Fund which represents 20% of our portfolio to take advantage of the following trade opportunities.
Rating System
Strong Buy - At Knowfee our analysis are confident in this buy order being correct.
Buy - At Knowfee our analysis believe that based on all information available this is likely going to pop and be a good trade.
Hold - Knowfee is uncertain of of short-term future performance on a quarterly basis, however we are still confident in this assets long term potential and recommend holding through short-term volatility.
Under-perform: Knowfee believes this asset will not be able to meet the streets expectations and is set to under-perform and likely correct downwards.
Sell: Knowfee rarely issues direct sell orders, these are only issued if market conditions have changed and this asset is no longer a viable long-term or short-term holding. When Knowfee issues a 5 rating take the money you've made and run.
Top 3 Pick's For This Week
BABA (1.2)
AMZN (1.4)
PINS & PYPL (1.6)
Name: Pinterest Inc.
Symbol: PINS
Exchange: NYSE
Knowfee Rating: 1.6
Analysis Rating: 2.1
We think that PINS will exceed market expectations this week on a number of key metrics, and believe that any buy of $70 or less per a share is a strong addition to your portfolio.
Justification:
The last 3 quarterly earning calls of been massive beats of PINS
High growth E-commerce market with strong AI presences
With most places around the world extending lock-down, stay-at-home, and social distancing measures e-commerce platforms should receive a major boost in volume.
Recent market down-turn of PINS has created a value buying opportunity heading into this quarters report.
Name: Snapchat Inc.
Symbol: SNAP
Exchange: NYSE
Knowfee Rating: 2.2
Analysis Rating: 2.2
We believe that Snapchat with it's massive platform growth with younger demographics will beat most analysis expectations on several metrics. Any buy under a value of $54/share would be a strong short-term addition to your tactical fund.
Justification:
Platform growth rate, Snapchat is one of the fastest growing platforms with young demographics and is tremendously undervalued for the potential of this company.
Revenue is on the upswing, Snapchat has done a great job monetizing their platform.
Recent market correction down to support level presents a short-term buying opportunity
Name: Square Inc.
Symbol: SQ
Exchange: NYSE
Knowfee Rating: 1.9
Analysis Rating: 2.4
At Knowfee we are confident in the short and long-term potential of SQ. Operating in high growth disruptive industries of payment processing hardware and software. Target a per share price of under $225.
Justification:
High growth industry that should benefit from the growing transition to digital-by-default and e-commerce trends.
Recent stay at home orders and a reduction in the use of cash should have a positive impact on the transactions volumes made through SQ services.
Every recent report has been a beat and the company is on a quarterly revenue growth rate of almost 30%.
Recent market correction and sell off, SQ is down from its annual highs for 2021 due to the market sell off that just occurred. This has created a strong buying opportunity at a discounted price.
Name: Amazon Inc.
Symbol: AMZN
Exchange: NYSE
Knowfee Rating: 1.4
Analysis Rating: 1.7
We've always been big Amazon and Bezo's fans here at Knowfee. Amazon has a suite of technologies across multiple disruptive industries and dominates the e-commerce industry.
Justification:
Down from all time highs, presents a discounted buying opportunity.
Growing transition to e-commerce accelerated by covid and amplified again with most world governments putting into place additional lock-down measures to deal with the second wave of covid.
We believe Amazon will have strong cloud computing and AWS revenue growth as Amazon provides the underlying infrastructure for a number of webpages, companies, and applications that have all had to shift more and more services online due to covid.
Strong AI, autonomous driving/delivery, deep learning, machine learning, and drone growth opportunities that Amazon is invested into.
Name: Lightspeed POS Inc.
Symbol: LSPD (CANADIAN $)
Exchange: TSX
Knowfee Rating: 2.2
Analysis Rating: 2.4
At Knowfee we usually don't recommend alot of Canadian based holdings but LSPD is one we've held for a while in our Investing 101 portfolio and have confidence in moving forward. It's not that Knowfee doesn't like TSX listed holdings, but the Canadian market is like playing Junior B hockey, its not the NHL. Most major firms with the most strong growth opportunity aren't listed on Canadian exchanges. LSPD is a payment processing firm that is growing at a rapid pace in the Canadian market and is available to purchase in CND.
Justification:
Payment processing industry is a growing at a rapid pace with the transition to a cashless society.
Strong transaction volume processed through LSPD systems
Has beat last 2 quarterly reports and is currently trading at a support level, which indicates an upswing is likely
Name: Alibaba Group Holding Ltd..
Symbol: BABA
Exchange: NYSE
Knowfee Rating: 1.2
Analysis Rating: 1.6
BABA has been a long-term holding of the Investing 101 portfolio for a number of reasons of which we won't get into all of them today. With that said, the market has presented a tremendous buy opportunity on BABA as a result of the recent correction in its stock price. The news that China was cracking down on monopolies within its country resulted in some major public pressure on Alibaba that drove the price down from all time highs.
Justification:
BABA is trading at its median share price and 200 day moving average as a result of the recent market correction.
Knowfee anticipates strong growth among all of BABA business segments lead by strong revenue growth in cloud computing, e-commerce, payment systems, and innovations initiatives.
Chinese market growth and recovery - the Chinese market with its extreme enforcement of lock-down restrictions has rebounded stronger than any other market coming out of the first wave and going into the second wave of covid.
Name: Digital Turbine
Symbol: APPS
Exchange: NYSE
Knowfee Rating: 2.1
Analysis Rating: 2.2
APPS focuses on mobile communication solutions including monetization of devices, targeted ad delivery, and other core application platforms. APPS has been a part of the Knowfee portfolio for a while now.
Justification:
Recent track record of beating quarterly market expectations of analysis.
Strong core revenue growth at a pace of 15% quarterly.
Recently corrected down to a support level, slightly above your Keltner median indicator and recent support levels. Discounted buying opportunity heading into report.
Industry growth rate - high growth industry that has received a boost from covid
Name: Ebay Inc.
Symbol: EBAY
Exchange: NYSE
Knowfee Rating: 2.5
Analysis Rating: 2.5
At Knowfee we've been in and out of Ebay within our tactical pool and have been watching Ebay lately. Knowfee believes Ebay could be a sleeping giant and once again gain popularity for the selling of goods among the younger generation.
Justification:
Knowfee believes Ebay is trending in a popular direction, largely due to recent positive press from various social media influencer's for it's usefulness in purchasing and selling trading cards, collectibles, and other goods.
Platform growth rate.
Trading within and battling in the channel has presented a good long term buying opportunity.
Increase in demand of e-commerce platforms and growth rate of industry
Industry growth rate accelerated by covid.
Name: Paypal Inc.
Symbol: PYPL
Exchange: NYSE
Knowfee Rating: 1.6
Analysis Rating: 1.9
Gotta love Paypal, its a true disruptive technology force. Just when you think it couldn't get better PYPL incorporated crypto into their application making access to crypto assets easier, smoother, and safer than ever. This decision will result in a major boost to its platforms adoption and growth rate over the long-term.
Justification:
Payment processing industry is in a high growth cycle with the elimination of physical cash and increased demand for electronic transfer and payment options.
Adoption and acceptance of crypto and blockchain technologies will result in new lucrative high growth revenue streams likely to start making an impact on the books this quarter.
Trading at a discounted price at its most recent support level and close to its 200 day moving average. Some positive press would result in a major upswing likely to the 270 plus range.
Portfolio of products diversifying its income streams and adding to its core technolgy strengths. Likely a major boost to the following product lines of Venmo, Xoom, Braintree, and PYPL Credit.
Name: Spotify Inc.
Symbol: SPOT
Exchange: NYSE
Knowfee Rating: 2.3
Analysis Rating: 2.7
The last earning call was a miss but at Knowfee we think this call will be a beat. We've held SPOT for a while now within our core portfolio.
Justification:
User growth rate is high.
Industry leading podcast portfolio.
Trading close to support levels and way off 2021 highs.
Strong long-term portfolio addition at a price of 320/share or better.
We hope you enjoyed this alert, and wish you the best with your trades this week. Please always remember that Knowfee Inc. provides advice and alerts based on our company research and independent opinion of assets, Knowfee provides these alerts for education purposes only. It is your responsibility to do your own due diligence before making a trade. Trading is risky, please invest responsibly, and only invest money you are comfortable loosing. Please remember to remain focused and disciplined on your path to your long-term investment goals.
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