Today's video focuses on recent stock price action and earnings affecting MercadoLibre (MELI 4.05%), Cerence (CRNC 4.70%), Shopify (SHOP 3.08%), and DraftKings (DKNG 2.38%), four stocks I am keeping my eye on this week. Here are some highlights from the video.
- Cerence is a company that focuses on bringing conversational AI to the mobile world. The company's primary form of revenue comes from the automobile industry, which has caused some headwinds as automobile productions have slowed down due to semiconductor shortages. Regardless of the headwinds, Cerence grew its revenue 7% year over year in its most recent quarter and entered markets outside the automobile industry.
- DraftKings is still burning cash, but it does have a substantial cash position to allow its growth expenses. During its most recent earnings report, the company announced that online sports betting is available to only 29% of the U.S. population and other forms of online gambling ("iGaming") to only 11% of the U.S. population.
- All four companies are down substantially from all-time highs. I discuss the bullish and the bearish thesis for each stock in the video. One of the most noticeable risks for Shopify is the high valuation it holds. Regardless, this is a company growing substantially every quarter.
Click the video below for my full thoughts and analysis.
*Stock prices used were the closing prices of Dec. 3, 2021. The video was published on Dec. 4, 2021.