Why Tandem Diabetes Care Stock Sank Today – The Motley Fool

What happened

Shares of Tandem Diabetes Care (NASDAQ:TNDM) closed down 9.9% on Wednesday after sinking as much as 11.9% earlier in the day. There wasn’t any negative news specific to the insulin pump maker. However, healthcare stocks overall took a beating on Wednesday amid increasing concerns about the political climate in Washington D.C., particularly with the Medicare for All plan proposed by presidential candidate Sen. Bernie Sanders (I-VT).

So what

At this point, the sell-off for Tandem appears to be overdone. There’s a long way to go before Medicare for All has any kind of chance of becoming U.S. law.

Stock charts with arrows going down.

Image source: Getty Images.

Even though some surveys indicate public support for Sen. Sanders’ overhauling of the U.S. healthcare system, that support falls off dramatically when respondents learn more about the details of the plan. For example, a Kaiser Family Foundation (KFF) survey conducted earlier this year found that 56% of Americans supported the Medicare for All plan. But when told that such a system could lead to higher taxes, support fell to 37%. And when told that the government-run approach could lead to delays in getting care, only 26% of Americans supported Medicare for All.

It’s also uncertain how Tandem Diabetes Care would be impacted by the healthcare changes being floated around in Washington. Insulin pumps, such as those marketed by Tandem, are must-haves for many diabetic patients. 

Investors should also keep today’s decline in perspective. Tandem stock soared 51% higher in February and is still up 46% year to date despite the recent pullback. 

Now what

The best thing for investors to do now is to focus on Tandem Diabetes Care’s business prospects and not worry too much about politics. The good news is that those prospects continue to look very bright.

However, Tandem’s valuation is steep, with shares trading at more than 17 times sales. Because of the company’s premium price tag, any holes in the road for healthcare stocks overall could translate to craters in the road for Tandem Diabetes Care.


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BBBYQ – After Bed Bath & Beyond, Will Another Retailer Fall? 2 Winners And Losers

In April, Bed Bath & Beyond (BBBY) filed for bankruptcy after a botched merchandising makeover. More retail bankruptcies could be ahead, noted the New York Times

Given the low unemployment rate and continued growth in consumer spending, investors must distinguish the retail winners from the losers.

After reporting first quarter results, two things separate the rising retailers from the falling ones:

Trend of consumer demand. Retailers focus on various groups of consumers. Wealthy people who pay to display it are still buying and less wealthy consumers are cutting back and delaying purchases.
Relative competitive positioning. The retailers whose competitive positioning best matches the needs of their consumers — for example, the ability to supply unique merchandise while maintaining tight control of costs to serve price-sensitive consumers — will prevail while those with weak strategies are at risk.

Read on for an analysis of two winners and losers; what is behind their strategies, and how investors can profit from this analysis. I’ve included a list of retailers considered to have an elevated risk of bankruptcy for those willing to bet on their declining stock price.
Retail Bankruptcies Ahead
Bankruptcies are at the highest level since 2010 — and BBBY is the most prominent of the retailers suffering this fate. According to the New York Times, more than 230 U.S. companies filed for Chapter 11 — the largest number since 2010.

Since the Covid-19 pandemic began in March 2020, companies have been whipsawed by rapidly changing tailwinds and headwinds. Early in the pandemic, a combination of government stimulus, low interest rates, and the success of working from home created tremendous growth opportunities.

As inflation persisted — rising as high as 9.1% in June 2022, the Federal Reserve Bank raised interest rates from near 0% to a range between 5% and 5.25%.
For heavily indebted companies dependent on consumers squeezed by persistent inflation, the drop in discretionary spending has contributed to their inability to meet their financial obligations.

Yet the economy has a big strength. In April 2023, the 3.4% unemployment rate and a 4.3% rise in consumer spending — which accounts for 70% of economic growth — kept GDP growing at a modest 1.1% in the first quarter of 2023.
This mixture of economic strengths and weaknesses aims the most pressure at specific industries. Retailers — such as BBBY and David’s Bridal — as well as restaurants are filing for bankruptcy because they are “typically among the most sensitive businesses to challenging economic conditions,” the Times noted.
However, my analysis of why BBBY went bankrupt suggests a gigantic strategy misfire was the primary reason for its failure, rather than a difficult economy. Last summer, BBBY burnt through $325 million in cash as revenue plunged 25%.
The reason was that activists who took over BBBY’s board saw private label goods as a way to boost the company’s profitability. In November 2019, the board hired Mark Tritton, the former chief merchandising officer at Target
who had overseen a makeover that included loading up Target’s shelves with private label goods.
Tritton — who neglected to consult store managers and customers ahead of time — bulldozed the private label strategy through BBBY. Before his arrival, store managers had the flexibility to stock up to 70% of their local shelves with goods that customers wanted — most notably, discounts on branded goods such as Cuisinart food processors and OXO cookware.
After Tritton forced stores to rid their shelves of branded goods and replace them with private label ones, consumers entered the stores, searched for and failed to find the branded products they wanted to buy, and began buying those items from Amazon
More bankruptcies are on the way as banks cut back on lending. Joe Davis, Vanguard chief global economist, warned that tighter financial conditions will force companies to cut costs, part ways with workers, and ultimately file for Chapter 11. Bank of America predicted that about $1 trillion worth of corporate debt — 8% of the total — could default, reported the Times.
More retail bankruptcies are likely. As BBBY’s Chapter 11 filing suggests, investors ought to analyze individual companies to distinguish the likely winners from the losers.
In my view, the winners will be companies with effective strategies that serve consumers eager to spend more while the losers will aim ineffective strategies at cash-strapped buyers.
2 Retail Winners
Investors reward companies that exceed expectations. Two retail winners reported better than expected sales and profits and raised their guidance.
Each of them share common traits: they target consumers who are eager to spend and they compete for market share through effective strategies featuring great products and tightly managed operations.
Here are two retail winners with a discussion of their stock prices, results, and growth strategies.
Abercrombie & Fitch
Stock Rises 30%
Mall retailer A&F enjoyed a 30% surge in its stock price on May 24 after reporting a surprise profit, raising its guidance and beating Wall Street’s sales and profit estimates, noted CNBC.
A&F benefited from strong demand from wealthier millennial shoppers buying return-to-office clothes from its namesake brand. As CEO Fran Horowitz told Yahoo Finance Live, “We really changed the brand from what people used to reference as a T-shirt and jeans brand to a lifestyle brand.” She said growth is increasing because consumers are buying more product categories from A&F.
While Hollister, A&F’s more economically sensitive product line, did not do as well, it exceeded analyst expectations. Moreover, A&F boosted its profit margin by better matching inventory to demand. This helped lower A&F’s product and freight costs and enhance its margins.
Analyst Neil Saunders said A&F management has improved the company’s merchandise selection. He cited the company’s “elevated casual offer,” “range of relaxed styles for men and women,” and “great strides in apparel growth areas such as activewear.”
For fiscal 2023, A&F raised its guidance for sales growth and operating margin. Specifically, it now expects “net sales to grow between 2% and 4%, compared with a previous range of 1% to 3% [with] operating margin to be in the range of 5% to 6%, compared with its previous outlook of 4% to 5%,” CNBC reported.
Dick’s Sporting Goods Stock Increases 2%
Sporting goods retailer Dick’s reported better than expected sales and profits on May 23 — sending its shares up slightly. CEO Lauren Hobart said “its core customer base of athletes purchased more, purchased more frequently and spent more each trip,” according to MarketWatch.
Dick’s competitive strategy contributes to its superior performance. Dick’s strong vendor relations give it better merchandise and its strong internal operations enable it to earn double-digit profit margins while its weaker rivals are falling short of sales and profit targets as they struggle with higher inventories, D.A. Davidson analysts noted.
2 Retail Losers
Two retail losers in the clothing industry blamed cash-strapped consumers for their failure to meet investor expectations.
Analysts at UBS confirmed the problem. They found consumers are deferring clothing purchases more than any other category. Specifically, the apparel purchase deferral rate increased to 42% since the beginning of the cycle, compared with 23% for other discretionary categories, MarketWatch reported.
Children’s Place Stock Fell 25%
Specialty apparel retailer Children’s Place reported wider-than-expected losses and cut its guidance in a May 24 report. CEO Jane Elfers blamed forces outside the company’s control, noting: “Our first quarter results were negatively impacted by the ongoing macro-tension which resulted in outsized pressure on our core customer by limiting their purchasing power,” according to a statement.
My guess is that merchandise selection and insufficient control of operations contributed to the disappointing results. Core customers spent less in the first quarter with same store sales down 8.2%. Moreover, higher cost of good sold contributed to a 9.2 percentage point drop in its gross margin, noted TipRanks.
Children’s Place blames macroeconomic headwinds for a lower 2023 revenue forecast. After a 10.8% drop last year, the company expects revenue to fall another 12% in the current fiscal year.
American Eagle Outfitters
Shares Shed 20%
Shares of clothing and accessories retailer American Eagle Outfitters fell 20% on May 25 after it reported revenue and earnings per share that met expectations and forecast a drop in second quarter revenue, according to CNBC.
American Eagle lowered its operating income and full-year revenue guidance.Specifically, the company “anticipates full-year revenue to be flat to down low single-digits, lagging the flat to up single-digits it projected before” while it forecast a 10% drop in operating income — to a midpoint of $260 million — compared to its March 2023 estimate, CNBC reported.
American Eagle has opportunities to improve the appeal of its merchandise to consumers and to boost efficiency. In a news release, CEO Jay Schottenstein said the company should “chase profitable growth” and become more efficient by imposing “inventory discipline” and cutting costs.
What Investors Should Do
I think investors should evaluate their risk and reward preferences before deciding whether to bet on either retailers that are doing well or against retailers that are struggling.
My hunch is that the potential for gain is greatest for investors who are willing to take a risky bet that an at-risk retailer will file for bankruptcy.
Investors willing to take this risk could borrow shares in the company, sell them in the open market, and hope that the company stock plunges on the way to bankruptcy. If that happens, they can repay the stock loan by buying back the shares in the open market at pennies per share and pocket the difference.
Retail Dive considered six retailers to be among those with an elevated risk of bankruptcy on March 6. 2023.
They are ranked in descending order of their likelihood of going bankrupt based on their Financial Health Rating which measures their risk of default by March 2024 — ranging from 0 = highest risk to 100 = lowest risk.
For each company, I have included its short interest, stock price performance, cash burn and ending cash balance for the most recent period, according to the Wall Street Journal.


(19). While 31.3% of its shares are sold short; as of May 26, its stock had risen 12% in 2023. The company burned through $234 million in free cash flow in the March 2023-ending quarter — when it held $970 million in cash.
Blue Apron (29). 10.9% of its shares are sold short; as of May 26, its stock had fallen 25% in 2023. The company burned through $11.2 million in free cash flow in the March 2023-ending quarter — when it held $31.7 million in cash.
The RealReal (29). 14.5% of its shares are sold short; as of May 26 its stock had risen 33% in 2023. The company burned through $40.2 million in free cash flow in the March 2023-ending quarter — when it held $247 million in cash.
Boxed (30). 20.6% of its shares are sold short; as of May 26, its stock had lost 99% of its value in 2023. The company burned through $13.5 million in free cash flow in the September-2022-ending quarter (its most recent financial report) — when it held $35.3 million in cash.
ThredUp (38). 12.2% of its shares are sold short; as of May 26, its stock had risen 92% in 2023 to $2.27 a share. The company burned through $8.1 million in free cash flow in the March 2023-ending quarter — when it held $51.2 million in cash.
Farfetch (42). 8.4% of its shares are sold short; as of May 26, its stock had risen 8% in 2023. The company burned through $169 million in free cash flow in the March 2023-ending quarter — when it held $486 million in cash.

While the two winners I mentioned above could keep rising, investors who do not wish to bet on the decline of weak retailers may be better off investing in a sector propelled by a powerful tailwind — such as the adoption of generative AI — rather than in shares of successful retailers fighting strong economic headwinds.

TSLA – Tesla Model Y is the first electric vehicle to be the world’s best-selling car

For the first time ever, an all-electric vehicle — the Tesla Model Y — is now the world’s bestselling car. According to analyst data from Jato Dynamics published by Motor1, the Tesla Model Y has surpassed Toyota’s RAV4 and Corolla models to top global sales rankings in the first quarter of 2023 even though the price for the 2023 Model Y starts at $47,490 or more than the 2023 Corolla ($21,550) and RAV4 ($27,575).

The figures reported by Jato Dynamics reveal that the Tesla Model Y sold 267,200 units globally in the first quarter, compared to the 256,400 Corolla and 214,700 RAV4 units sold during the same period, or about a 69 percent year-on-year increase for the Model Y. Tesla
doesn’t provide an exact breakdown of sales, but it reported that over 400,000 Model Y and Model 3 vehicles had been delivered to customers in the first quarter of 2023. Electric vehicle development by competing car manufacturers also remains slow, allowing Tesla to continue to dominate the EV market. And Tesla has often cut the price of most of its cars over the last few years, including the Model Y. While a Tesla EV is currently the world’s bestselling vehicle, the company isn’t the biggest global automaker overall. Volkswagen
General Motors
and Ford
all report higher revenue and unit sales by comparison. According to Car Logos, Tesla doesn’t even rank in the top 10 biggest global car manufacturers, sneaking in at 19th place for 2022. The Model Y placed third in the overall global rankings for 2022, breaking into sixth place on America’s list of the top ten bestselling cars, despite competition from trucks and full-size SUVs. Last year, it also became the bestselling vehicle in both Europe and California and the fourth bestselling in China after jumping 15 places from the previous year.

NVDA – Nvidia Stock Can Still Rise As Long-Term Growth Gets Priced In

Justin SullivanOverview NVIDIA’s (NASDAQ:NVDA) latest earnings report might have been the biggest event in the stock market this year. Smashing expectations as well as issuing significantly upgraded guidance, NVIDIA stock responded with a 27% uptick that added $202B to its market capitalization in one trading day. Now entering the weekend, NVIDIA continues to be the talk of the town amongst bulls and bears alike. Many investors are referring to it as an ‘unprecedented’ or ‘once in a lifetime’ earnings release, the likes of which have not been seen for companies that are already this large. I agree. This recent performance has been an acceleration of NVIDIA stock’s already heady momentum so far this year. As of market close this week, NVIDIA has returned 6.9x the NASDAQ Composite as well as a staggering 16.89x the S&P 500 year-to-date. Seeking Alpha These latest results have supercharged what had already been an active discourse around NVIDIA. Bulls continue to state that NVIDIA is the market leader in a significant secular growth market while bears continue to express reservations about its lofty valuation. The earnings results and the stock’s price action this past week have added ballast to both sides’ arguments without fundamentally changing the narrative for either. In this article, I’ll put my chips down and posit my forward-looking view of the stock. I will do this by walking through the bear case in detail, extrapolating current NVIDIA metrics forward while also contextualizing it relative to comparable entities. Combining this with a review of its value proposition (business section) will allow me to determine if the stock is still worth buying at its current price. Business Before looking at NVIDIA’s stock I want to first comment on its business. While it is well-understood that NVIDIA is a market leader as well as a core beneficiary of the ongoing secular AI trend, it is sensible to evaluate its product and market positioning in more detail to see exactly why this is the case. At present, NVIDIA’s sales are increasing rapidly due to it being the emerging market leader in providing custom chips that are particularly well-suited for artificial intelligence computing workloads. This is part of a longer-dated trend in what is NVIDIA’s real core competency: accelerated computing. Accelerated computing is when a computing architecture makes use of another processor, distinct from the CPU, for certain tasks. In an accelerated computing architecture, the computer offloads certain types of tasks from the central processing unit onto this other processor. This coprocessor is specialized hardware that’s optimized for parallel computing, which allows for increased efficiency in the computing system overall. This has been NVIDIA’s focus since 2006. Having been focused purely on hardware optimized for graphics processing until that point, NVIDIA expanded its offering – and total addressable market – significantly by releasing CUDA that year. CUDA software allowed for general parallel processing on NVIDIA hardware, allowing customers to leverage graphics cards for other types of parallel computing for the first time. This established accelerated computing as a paradigm particularly fit for large-scale, massively parallel, computer workloads. It turns out that this kind of computing is what’s required for building artificial intelligence systems. Accelerated computing architecture is distinctly efficient for artificial intelligence workloads as AI requires massive levels of parallel processing, just like computer graphics. This has been the standard architecture for AI or machine learning workloads occurring at any reasonably large scale for some time. Companies already involved in genuine AI research have needed to operate a significant data center footprint with this architecture in order to develop AI software. Companies just starting out in AI ultimately need to have it or have access to it. This all plays out in the enterprise GPU market. Companies need graphical processing units for their data centers in order to enable accelerated computing. The GPUs are the parallel-optimized processors that enable this computing paradigm. In this market, NVIDIA is undoubtedly king. As of Q4 2021, NVIDIA held 91.4% of the enterprise GPU market. The only other competitor of note was AMD, which held 8.5% of the market at that time. This is a dominant market position that indicates NVIDIA’s superior product and looks set to be sustained. On a more speculative note, there is also another market worth mentioning: the personal computer GPU market. Just like enterprise data centers, GPUs and optimized coprocessors have also been increasingly present in consumer electronics. While video games may have kicked off and sustained this trend, artificial intelligence appears to have also become a factor: Apple has had dedicated AI coprocessors on iPhones since the iPhone 8, since Q3 2017. As artificial intelligence computing workloads become more commonplace, more of them may start occurring on end-user devices – which would likely increase demand in this market as well. Perhaps surprisingly, NVIDIA is not the leader in the PC GPU market; Intel (INTC) is. Company Q4 2022 PC GPU Market Share Intel 71% NVIDIA 17% AMD 12% Click to enlarge Source: Statista It will be interesting to see how this market evolves as to demand and market share composition. While not as directly in play as the enterprise GPU market at present, it is one to keep an eye on as AI becomes more commonplace. Overall we can see why it makes sense that NVIDIA is uniquely positioned to benefit from the AI trend and to continue doing so. Valuation Having outlined NVIDIA’s differentiation we can now look at its forward earnings and relative valuation. My goal here is to extrapolate current growth rates and valuations for NVIDIA and comparable entities, in order to see what the current market price implies. This has the effect of constructing the bear case in significantly more detail to see if it is reasonable to believe and over what interval. I believe it is first sensible to compare NVIDIA against its primary competitors in the GPU space – Intel (INTC) and AMD (AMD). Additionally, I think it also makes sense to compare NVIDIA to other very large ($500B+) technology stocks. This is due to this basket of stocks trading as forward-looking instruments with significant growth premiums, fluctuations in which can inform how the market is pricing the future earnings for NVIDIA on a relative basis. The table below compares NVIDIA’s expected (consensus) forward earnings relative to its peers. 2022 EPS 1 Yr. FWD EPS 2023 EPS LT. FWD EPS CAGR 2024 2025 2026 2027 2028 NVDA $1.74 28.91% $2.24 37.07% $3.07 $4.21 $5.78 $7.92 $10.85 AMD $0.84 13.97% $0.96 27.32% $1.22 $1.55 $1.98 $2.52 $3.20 INTC $1.94 -31.38% $1.33 3.26% $1.37 $1.42 $1.47 $1.51 $1.56 GOOG $4.56 3.79% $4.73 16.89% $5.53 $6.47 $7.56 $8.84 $10.33 MSFT $9.01 10.95% $10.00 11.97% $11.19 $12.53 $14.03 $15.71 $17.59 *AMZN -$0.27 -7.85% $0.78 36.73% $1.07 $1.46 $1.99 $2.73 $3.73 META $8.59 1.66% $8.73 19.71% $10.45 $12.51 $14.98 $17.93 $21.47 AAPL $5.89 5.21% $6.20 11.63% $6.92 $7.72 $8.62 $9.62 $10.74 TSLA $3.62 30.58% $4.73 21.73% $5.75 $7.00 $8.53 $10.38 $12.63 Avg EPS $3.99 $4.41 $5.18 $6.10 $7.21 $8.57 $10.23 Click to enlarge Source: Seeking Alpha *Diluted EPS. Due to slight differences in fiscal reporting periods between the firms, the 4 quarters occurring in calendar year 2022 are utilized for each. **Amazon (AMZN) estimates are calculated in a distinct way due to the company having had negative EPS last fiscal year. To better reflect forward earnings CAGR, I assume that it will return to the average of its 10-year trailing yearly EPS ($0.78) in 2023 before applying expected long-term earnings growth rates. This allows for a forward estimate without the distorting numerical effects of crossing between negative/positive EPS. At current expectations NVIDIA will handily surpass Intel in EPS for fiscal year 2023. It will then continue to outperform its semiconductor competitor peers while trailing mega technology averages overall, only crossing the average across these firms in 2028. At that point its EPS will surpass every peer apart from Microsoft (MSFT) and Meta (META). This shows us that NVIDIA’s relative earnings growth is significant even within a 5-year span, indicating a reasonable horizon for it to potentially grow into its valuation. We can now look at how relative P/E valuation will evolve for NVIDIA and its peers over this timeframe. This chart does not account for changes in the quantity of shares outstanding. Price P/E 2022 2023 2024 2025 2026 2027 2028 NVDA $390.28 224.30 174.23 127.13 92.70 67.52 49.28 35.97 AMD $127.40 151.67 132.71 104.43 82.19 64.34 50.56 39.81 INTC $28.92 14.91 21.74 21.11 20.37 19.67 19.15 18.54 GOOG $125.68 27.56 26.57 22.73 19.43 16.62 14.22 12.17 MSFT $334.05 37.08 33.41 29.85 26.66 23.81 21.26 18.99 AMZN $120.59 N/A 154.60 112.70 82.60 60.60 44.17 32.33 META $263.50 30.68 30.18 25.22 21.06 17.59 14.70 12.27 AAPL $175.52 29.80 28.31 25.36 22.74 20.36 18.25 16.34 TSLA $194.00 53.59 41.01 33.74 27.71 22.74 18.69 15.36 Avg. P/E 94.93 91.82 71.75 56.49 44.75 35.75 28.83 Click to enlarge Source: Seeking Alpha NVIDIA is indeed particularly expensive when considering its P/E multiple for the past year, 2023, and 2024. I will also note that Google (GOOG) remains remarkably cheap relative to its peers across this entire time horizon. Starting in 2025 things start to look more reasonable for NVIDIA, with its P/E premium materially closer to the average. NVIDIA’S P/E gets close to AMDs in 2026 and actually goes below it in 2027, becoming even cheaper relatively in 2028. By 2026 NVIDIA’s P/E premium will be around 50% of the average and less so after that, with less than a 25% premium in 2028. For current and historical premiums for this stock that can’t be considered particularly expensive. 2022 2023 2024 2025 2026 2027 2028 NVIDIA P/E / Avg P/E 236.28% 189.74% 177.18% 164.09% 150.88% 137.83% 124.78% Click to enlarge Source: Seeking Alpha Considering its relative growth rates, I don’t think that NVIDIA looks too expensive on a forward basis. It is set to become relatively cheaper each year and is not even priced as expensively as AMD from 2027 onwards. Risks The first risk for this scenario playing out would be a change in relative growth rates across this basket of firms. NVIDIA’s semiconductor competitors can start to absorb market share from it, or to accelerate their own growth rates materially, its forward price will not be as appealing on a relative basis and it could no longer be considered an opportune investment at current prices. The other risk would be a reduction in the company’s growth premium, irrespective of its relative valuation. If NVIDIA ends up underperforming its now significantly higher expectations for growth, investors would expect less future returns and could sell off shares. This would lower the stock’s growth premium and bring the company’s trading P/E multiple to something more in line with the sector median. The final and arguably most significant risk to NVIDIA is supply chain risk. NVIDIA’s business is built around designing but not producing its own chips, and its business would be hampered severely by disruptions to its primarily Taiwan-based supply chain. While supply chain diversification efforts are ongoing at the TSMC (TSM) level, they are still in the early stages. As such, I consider this risk to be material. I’ll reiterate that owning Intel stock would be an excellent hedge against any potentiality of this nature. Conclusion At current prices and expected growth rates, NVIDIA is projected to grow into its valuation in less than a decade and become relatively cheaper a lot sooner than that. Continued high growth expectations would likely see the stock maintain a healthy growth premium in its valuation that would keep it close to its current/historical P/E multiple. All else being equal, I would expect this growth premium to persist for as long as the company can deliver results at the higher end of guidance or better during this current stage of growth. Along with this, there is a fundamental undercurrent of improving relative multiples as compared to other very large technology companies. This implies potential upside for the stock over the next 5 years or more. Given ongoing macroeconomic uncertainties, however, I am looking to trade this stock with a one-year horizon, a timeframe within which I believe there is ample opportunity for further returns. To be clear, I am expecting NVIDIA to both grow earnings as well as maintain or exceed its current P/E multiple throughout the next four quarters. Continuing to grow earnings at its current level will allow NVIDIA to maintain robust future growth assumptions on the part of investors and maintain the present level of growth premium for its shares. As with this most recent quarter, I am expecting subsequent quarters to continue to pull its future performance forward to current share price appreciation; an equal multiple at higher earnings will then yield a higher share price. More than one year out, my certainty around macroeconomic conditions that affect the stock decreases significantly and will have to be re-evaluated at that time. Considering all of this, NVIDIA stock is still a good buy.

NFLX – Netflix’s Arnold Action Comedy ‘Fubar’ Reviews Badly, Rockets To #1

It’s one of those strange occurrences where something think something like a new action series starring Arnold Schwarzenegger should be a huge deal when it drops on Netflix, but if you’ve barely heard of FUBAR until right now, I wouldn’t blame you.

The action comedy is already starting to pick up traction on Netflix, however, debuting at #1 despite relatively little promotion or fanfare ahead of time. People see Arnold, they watch. And especially since he’s rarely on film all that much anymore in his post-Governator days.

However the show is…not reviewing especially well. With 41 reviews in, it has a 51% on Rotten Tomatoes. Rotten, but also pretty poor in the scope of most TV high profile shows which review higher. The only recent shows I’m seeing review worse are 20% for Netflix’s Queen Cleopatra, the very bad, historically inaccurate documentary, and HBO’s The Idol which critics are essentially describing as “Misogyny: The Show.”

Arnold’s FUBAR is better by comparison, but I am getting Space Force vibes from it, the high profile Netflix comedy starring a post-Office Steve Carrell that had a 58% and was cancelled after two seasons. FUBAR does have a 71% audience score, but there are not all that many ratings in yet. Space Force had a 77%.

The show is eight nearly hour-long episodes. I watched a little bit of it, and the tone reminded me somewhat of Amazon’s Citadel, jokey but not actually funny. Joke-adjacent, like the cover art which has Arnold holding a “World’s Best Dad” mug being shot with a bullet. That’s kind of the level of humor you see in the series. It’s definitely more of an explicit comedy than Citadel, but it doesn’t seem to land. A much better spy option, and one on Netflix, would be The Night Agent, the hugely popular series from a few weeks back. And while it’s not quite a spy action series, for intrigue, I’d also watch Netflix’s The Diplomat.

We’ll see how FUBAR does. Netflix does not need shows to review well, it needs people to watch them. But I would argue more often than not, badly reviewed shows do tend to fade quickly because they don’t carry much word of mouth, and will have a harder time attracting an audience. Not that highly reviewed shows are guaranteed a pickup of course, as there are dozens of examples where that hasn’t been true.

I do wonder that if Arnold is on board as the star for this, if he could command say, a guaranteed two season deal for FUBAR before it event started, but who knows.
Watch it for yourself and decide if you like it, but initially here it does not seem great.
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Pick up my sci-fi novels the Herokiller series and The Earthborn Trilogy.