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Lululemon is Buying Mirror - Should You Buy $LULU Stock?

6/30/2020

Lululemon Athletica is acquiring in-home fitness company Mirror for $500 million. Should you buy LULU stock? Lulu is an exciting growth stock in the retail sector, and this strategic purchase could unlock tremendous recurring revenue and other benefits for the company. Today's video shares my take. Is the MIRROR Interactive Fitness acquisition a smart move for Lulu?

The deal comes at a time when home workout solutions are in high demand thanks to the COVID-19 pandemic. Even when gyms begin to reopen in different locales, many will likely be wary of returning to a potentially high-risk enclosed space, at least for as long as the virus continues to spread. Although there’s stiff competition in the category of connected fitness slabs, including Tonal and Tempo, Mirror continues to be the biggest name of the bunch. And the two companies have a relationship dating back to late last year, when Lululemon become an investor in Mirror. Mirror is expected to be profitable in 2021, and their revenues are expected to top $100 million in 2020. From CNBC: "Lululemon is acquiring the in-home fitness company Mirror for $500 million, the retailer announced Monday, marking its first acquisition with a bet that more people are going to be pivoting to exercise at their homes. Lululemon shares were up almost 4% in after-hours trading. Following the closing of the deal, Mirror will run as a standalone company within Lululemon, and its current CEO, Brynn Putnam, will continue as Mirror’s CEO, reporting to Lululemon Chief Executive Calvin McDonald, the companies said. The deal, which will be paid for in cash, is expected to close in the second quarter of fiscal 2020. Lululemon first invested $1 million in Mirror in mid-2019. Mirror, which launched in 2018, had raised $72 million from investors to date. The business offers live classes weekly through its wall-mounted mirror device in addition to on-demand workouts and one-on-one personal training sessions. Its mirror retails for $1,495, and subscribers pay $39 per month to stream the classes. Mirror is seen as a competitor to other at-home workout equipment makers including Peloton. Many former gym users have flocked to these devices during the coronavirus pandemic, with fitness studios forced shut to try to curb the spread of Covid-19. When Peloton reported earnings in May it said it sales for the latest quarter had surged 66% from a year ago to $524.6 million. The company said it ended the quarter with a connected fitness subscriber base of more than 886,100 people, up 94% year over year. Mirror, meantime, currently has “tens of thousands” of users. In 2019, Lululemon detailed its three-fold vision to be a brand that doesn’t just sell clothes like leggings and sports bras, but that encourages people to sweat more. “The acquisition of Mirror is an exciting opportunity to build upon that vision,” McDonald said Monday. He added that the fitness company expects to do more than $100 million in revenue this year, and it will either break even or be slightly profitable in 2021. “In itself it is a revenue business … and we know that we can continue to grow that,” McDonald explained in an interview with CNBC’s Sara Eisen. “We see an entirely new model for incremental business.”

Disclaimer: I have been investing in the stock market for over 20 years, but I am not a financial advisor or a legal professional, and I am not providing financial or legal advice. The information provided is for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney or other professional to determine what may be best for your individual needs. FIRED Up Wealth and Eric Cuka do not make any guarantee or other promise as to any results that may be obtained from using our content. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. Past performance is no guarantee of future results.

#stocks #growthstock #highgrowth #homestocks #lulu #mirror

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Biotech Growth Stock Paying a 3.25% Dividend Yield? Is $BMY a Buy?

6/19/2020

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Today I cover Bristol-Myers Squibb stock analysis. Celgene and Juno Therapeutics were top cancer biotechnology stocks, and both are now owned by BMY. Celgene agreed to buy the rest of Juno Therapeutics it didn’t already own for about $9 billion in cash to gain access to Juno’s pipeline of cancer drugs.The company has been working on an experimental new gene therapy called CAR T-cell therapy — taking a patient’s own immune cells, called T cells, genetically manipulating them to attack specific proteins on cancer, and infusing them back into the patient. CAR T-cell therapy is a highly competitive and potentially lucrative area of biotechnology. On Nov. 20, 2019 Bristol-Myers Squibb (NYSE:BMY) announced the completion of its $74 billion acquisition of Celgene (NASDAQ:CELG). Bristol-Myers' strategy centers on merging an innovative, agile biotechnology company with the reach and resources of a major pharmaceutical company. Without question, Celgene brings an exciting pipeline, however, it also brings a large drug, Revlimid, that is set to lose its patent protection and face generic competition in the not-so-distant future. Bristol-Myers paid an attractive price for Celgene. In the two years prior to Bristol-Myers' acquisition of Celgene, Celgene's stock price declined from $119 per share to $67 per share -- a decline of more than 40%. Perhaps even more remarkable is that Celgene traded for just 6.7x forward 12-month earnings, at that point. Thus, Bristol-Myers essentially paid zero premium to acquire Celgene based on its early 2017 valuation. BMY pays over a 3.25% dividend yield, and I think the stock has solid upside potential.

Disclaimer: I have been investing in the stock market for over 20 years, but I am not a financial advisor or a legal professional, and I am not providing financial or legal advice. The information provided is for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney or other professional to determine what may be best for your individual needs. FIRED Up Wealth and Eric Cuka do not make any guarantee or other promise as to any results that may be obtained from using our content. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. Past performance is no guarantee of future results. #stocks #dividends #dividendstocks #dividendgrowthinvesting #biotechstocks #stockmarket #stockstowatch

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Snowflake - New Cloud SaaS IPO - Top IPO Growth Stock of 2020?

6/13/2020

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Today I provide analysis on Snowflake, which will IPO in the coming months. Snowflake provides a data warehouse-as-a-service or database-as-a-service (DaaS) that claims to dramatically simplify concurrency, performance, and overhead challenges, offering both reduced cost and improved agility. In this video, I break down what Snowflake does, discuss the IPO timing, discuss the IPO valuation, and discuss both the company's benefits and risks. Here are some facts about Snowflake: * More than tripled revenue YOY, a 257 percent increase. * Positioned as a Leader in Gartner's 2019 Magic Quadrant for Data Management Solutions for Analytics Report. * Emerged as a Leader in The Forrester Wave™: Cloud Data Warehouse, Q4 2018 Report. * Increased presence to nine countries to support a growing global customer base, with plans to increase Snowflake's presence to more than 20 countries over the next 12 months. * Opened its first European Research and Development Office in Berlin. * Nearly tripled employee count to approach nearly 1,000 professionals worldwide. * Recognized with numerous awards for its values-based culture and unique employee benefits, appearing in such lists and publications as: LinkedIn's 50 Most Sought-After Startups; Fortune's 50 *Best Places Workplaces in Technology; Inc. Magazine's Best Place to Work (multiple categories); Business Insider's 8 Cloud Computing Startups to Bet Your Career On; and Money's "50 Hottest Startups to Work For Right Now." *Increased Snowflake's leadership by adding Chief Legal Officer Margo Smith; Chief Finance Officer Thomas Tuchscherer; and Chief People Officer Kathy O'Driscoll. We also added former Adobe CFO Mark Garrett to Snowflake's Board of Directors. From Snowflake's website: Conventional data platforms and big data solutions struggle to deliver on their fundamental purpose: to enable any user to work with any data, without limits on scale, performance or flexibility. Whether you’re a data analyst, data scientist, data engineer, or any other business or technology professional, you’ll get more from your data with Snowflake. To achieve this, we built a new data platform from the ground up for the cloud. It’s designed with a patented new architecture to be the centerpiece for data pipelines, data warehousing, data lakes, data application development, and for building data exchanges to easily and securely share governed data. The result? A platform delivered as a service that’s powerful but simple to use.

Disclaimer: I have been investing in the stock market for over 20 years, but I am not a financial advisor or a legal professional, and I am not providing financial or legal advice. The information provided is for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney or other professional to determine what may be best for your individual needs. FIRED Up Wealth and Eric Cuka do not make any guarantee or other promise as to any results that may be obtained from using our content. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. Past performance is no guarantee of future results.

#stocks #IPO #Snowflake #highgrowth

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Datadog vs Splunk - SaaS Cloud Software Stock Analysis - Growth Investing - Which Stock to Buy Now?

6/2/2020

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Today, I discuss Datadog and Splunk SaaS cloud software stocks. What do these companies do? What are the pros and cons of each? Which company should you invest in? Which stock should you buy now? I cover the key differentiators in these Intelligent Application And Service Monitoring businesses, and I also provide my thoughts and opinions on each stock. Wait until you see the Rule of 40 chart towards the end!

Datadog (DDOG) is the leading service for cloud-scale monitoring. It is used by IT, operations, and development teams who build and operate applications that run on dynamic or hybrid cloud infrastructure. Start monitoring in minutes with Datadog! Splunk (SPLK) is a leading platform for Operational Intelligence. Customers use it to search, monitor, analyze and visualize machine data. * Splunk provides a flexible solution for customizing algorithms and adding data. * Core capabilities have provided a foundation for the company to expand into a wide set of corporate functions, such as security, compliance, business analytics, and monitoring. * Splunk has a large and active ecosystem of technology professionals, including professional services consultants and customers that share a wealth of knowledge and custom-built technology add-ons on its knowledge base portal to augment its own intellectual property (IP). * Splunk’s strength lies in its ability to normalize data for complex correlations across multiple data types. * Longer and more expensive to implement. * Enterprises looking to use custom complex algorithms to mine information contained in disparate log sources will likely gravitate toward Splunk. * Datadog straddles traditional IT operations and newer DevOps perspectives. * Offers a Software-as-a-Service (SaaS)-based solution built on the premise that operations and development professionals all have skin in the game and should be able to measure application performance from any angle. * A unified dashboard keeps the practitioner in-context when troubleshooting performance issues, and integrations for collaboration and notification tools (e.g., Pagerduty, Slack, or Victorops) are supplied natively through APIs. * Datadog has a large volume of out-of-the-box dashboards and integrations. Customers noted that the solution gives them far greater visibility than previously deployed tools, allowing staff members, armed with precise troubleshooting data, to react faster. * One area for increased R&D spend would be to expand deployment capabilities to provide options for cloud providers and enterprise on- premises requirements. * Because it’s a purely SaaS alternative, Datadog will resonate with IT decision makers who want to free their staff from tool management and support. * Datadog (DDOG) is firing on all cylinders…growing in an expanding market, improving its margins and cash flow, while also making acquisitions to expand capabilities. * Revenue increased by 87% (y/y) when it reported last quarter. Dollar-Based Net Retention Rate (DBNRR) was above 130%…which is impressive because, unlike the dollar-based net expansion rate, DBNRR includes the effect of churn. Billings grew 55% y/y, but actually was slightly down with COVID-19. RPO (remaining performance obligation) grew by 82%, which is a strong signal that Datadog is offering competitive products. Splunk - Rule of 40: * Revenue Growth + FCF margin = 52% - 16% = 36% * The score is slightly lower than the necessary 40% needed to fulfill the rule of 40….I believe it's due to a temporary drop in free cash flow, and it should recover once the accelerated shift to recurring revenue subsides. * For SPLK, leadership and analysts are pushing ARR (Annual Recurring Revenue), which is 52%.

Disclaimer: I have been investing in the stock market for over 20 years, but I am not a financial advisor or a legal professional, and I am not providing financial or legal advice. The information provided is for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney or other professional to determine what may be best for your individual needs. FIRED Up Wealth and Eric Cuka do not make any guarantee or other promise as to any results that may be obtained from using our content. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. Past performance is no guarantee of future results. #stocks #highgrowth #cloudstocks #stockmarket #investing #stockanalysis #DDOG #SPLK #datadog #splunk

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Eric Cuka’s Blog

Lululemon is Buying Mirror - Should You Buy $LULU Stock?

Biotech Growth Stock Paying a 3.25% Dividend Yield? Is $BMY a Buy?

Snowflake - New Cloud SaaS IPO - Top IPO Growth Stock of 2020?

Datadog vs Splunk - SaaS Cloud Software Stock Analysis - Growth Investing - Which Stock to Buy Now?

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