Investors of Whole Food Markets felt a collective stomach ache as they saw the company hit lows not seen since 2006 after falling short of expectations in market earnings released yesterday. Should investors check out and shop elsewhere for their organic fix?
On Wednesday's Investor Beat, Alison Southwick and Motley Fool analyst Jason Moser examine the most pertinent investment stories of the day including three movers and shakers and one high-tech company to look in to.
While expectations were not met in Whole Foods' quarterly reports, Jason explains that the company did have a growth in sales. Furthermore, Jason notes that, because of new competition in the organic market, Whole Foods' profits will, unsurprisingly, be squeezed. Jason still sees a lot of opportunity for investors in the organic food giant as he offers that the strong management team and continuous popularity could make Whole Foods a good long term investment.
Jason and Alison then dive into Walt Disney's recent quarterly results which had investors letting go of any doubts Disney's Frozen wouldn't succeed in bolstering its profits. In fact, according to Disney's CEO Robert Iger, Disney turned in the highest earnings per share in the history of the company.
From there, Jason and Alison discuss Groupon's recent downturn in the stock market and the company's long term vision. While Groupon was up 26%, this was offset by the company shelling out money on acquisitions and marketing in efforts to become an e-commerce site. Jason believes the heavy competition of Amazon and Walmart might be too much for Groupon's future.
Finally, Jason explains why he's minding Tesla this week-especially with the company's earnings report out at the end of the day.
John Mackey, co-CEO of Whole Foods Market, is a member of The Motley Fool's board of directors. Chris Hill owns shares of Amazon.com, Walt Disney, and Whole Foods Market. The Motley Fool recommends Amazon.com, Tesla Motors, Walt Disney, and Whole Foods Market. The Motley Fool owns shares of Amazon.com, Tesla Motors, Walt Disney, and Whole Foods Market. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.