Here at the end of April 2021, it might be useful to stop and take a look at the stock tickers. If a company’s got the market reach, though, it’s just smart to know it. After all, opportunities present themselves to investors ready to find them. With that as the setting, here’s a closer look at the four consumer stocks people are talking the most about. That doesn’t importantly make them a buy or a sell, but it doesn’t mean they aren’t one of those two things either.
Termination meant to curb the COVID-19 pandemic was tough on most businesses, but possibly, no industry suffered as much as the restaurant business did. Drive-thrus and deliveries just weren’t enough. The National Restaurant Association estimates last year’s restaurant revenue in the U.S. was an unfortunate $659 billion, falling $240 billion short of last year’s initial industry prediction.
There’s a light at the end of the mine, however, now that vaccines are more widely available. And while that’s good news for all restaurant names, stock investors are particularly stoked about the positive effect this rebound could have on Darden Restaurants, parent to popular chains like Olive Garden, Cheddars, and Longhorn, just to name a few.
It makes sense. So-called sit-down casual restaurants were off-limits or severely moderate when the coronavirus infection was at its worst, but fast-food chains with drive-thrush were considerably more reachable. Now, having not been able to comfortably enjoy a nice, served meal in many months out of concern over the coronavirus, consumers are ready for just that. A recent survey performed by Groupon indicates trying a new restaurant is second only to hugging friends and family on consumers’ agendas once COVID-19 is put in the rearview mirror.
Shares of streaming cable TV company fuboTV were roaring higher in the latter part of last year, but it’s been nothing but down, down, down so far in 2021. The stock’s recent new multi-month low is nearly 70% below its December spire, and against a set of investor lawsuit announcements, fuboTV shares look primed to move even lower. Maybe they will.
Don’t read too much into the boasting, though. Virtual cable is a remarkably more marketable and more affordable alternative to traditional cable TV, and fubo’s got the subscriber growth to prove it. As of the end of last year, its served 548,000 customers, nearly doubling its headcount from just a couple of parts earlier.
Oddly, though share prices continue to fall while analysts’ price targets haven’t flickered. They’re still saying these stocks are worth around $45 per share, which is more than twice what the stocks trading at now.
It’s not just an acclaimed stock. GameStop is the proverbial poster child for meme stock mania that’s dominating headlines this year. Shares soared in January as part of a coordinated short squeeze set up by a handful of hedge funds betting against the video game retailer, only to lose most of that gained ground just a few days later. While not as volatile as it was then, this name remains a pawn in the war between a few big bears and a lot of small bulls.
The story is evolving, though. Activist investor Ryan Cohen is positioned to become the company’s next chairman, and GameStop announced on Monday that current CEO George Sherman is stepping down from the post on July 31, or sooner if the company finds a replacement in short order. No candidates have been named yet, but a new approach is already gelling. AMC Entertainment
Finally, another major meme stock name from earlier this year. AMC Entertainment still has traders in a tizzy Like restaurants, the coronavirus pandemic was particularly tough on movie theaters. AMC’s top line tumbled 77% last year, driving it to a net loss of $4.6 billion. Adjusted EBITDA and adjusted cash flow were both negative to the tune of $1 billion. And pushing the company to the brink of bankruptcy. Was it not for January’s short squeeze, shares could have easily continued their march into record-low territory this year? Free for life e-solution for business. Click Here.
Maybe these buyers are onto something, though.