| | | | A broadband connectivity provider is soaring 15% on an acquisition-fueled revenue surge, an e-vapor company is posting a huge revenue jump, and a metal recycler is skyrocketing 100%+ after being acquired in a high-premium deal. Here’s what you need to know. | |
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| | | | What to Watch | Earnings: | None Scheduled | Economic Reports: | Consumer sentiment (prelim) [March]: 10:00 a.m.
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| | E Vapor | RLX Technology Surpasses Revenue Estimates, Delivers Strong 2024 Results | | RLX Technology (NYSE: RLX) reported strong financial performance for 2024, with net revenues surging 73% year-over-year, driven by its successful global expansion strategy. | For the fourth quarter, the e-vapor company posted revenue of RMB813.5 million (US$111.4 million), up from RMB520.5 million in the same period last year. | Gross margin has improved to 27.0% from 23.7%, reflecting stronger operational efficiencies. | RLX is up 4.68% in premarket trading. | However, U.S. GAAP net income for the quarter has declined to RMB127.4 million (US$17.5 million) from RMB216.0 million in the previous year. | For the full fiscal year, RLX generated RMB2.75 billion (US$376.6 million) in revenue, a sharp increase from RMB1.59 billion in 2023. | The company’s gross margin also expanded to 26.4% from 24.4%. Net income under U.S. GAAP rose to RMB564.3 million (US$77.3 million), while non-GAAP net income reached RMB934.0 million (US$128.0 million). | RLX continues to strengthen its presence in international markets, focusing on expansion and innovation to sustain growth. | The company also returned $122.9 million to shareholders, highlighting confidence in its financial position and long-term strategy. |
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| | Fashion Retail | Buckle’s Q4 Earnings Beat Forecasts, Online Sales Climb 6.4% | | Buckle Inc. (NYSE: BKE) reported stronger-than-expected fourth-quarter earnings, pushing its stock up 4.55% in premarket trading. | The specialty retailer’s adjusted earnings per share of $1.53 for the quarter ending February 1 are better than analyst expectations of $1.38. | Revenue for the quarter came in at $379.2 million, slightly above the consensus estimate of $373.6 million but down 0.8% from the $382.4 million recorded in the same period last year. | Comparable store sales are up 3.9% year-over-year, while online sales increased 6.4% to $69.7 million. | CEO Dennis Nelson expressed satisfaction with the company's performance, highlighting its ability to outperform expectations despite ongoing retail challenges. | He credited Buckle’s focus on customer service and trend-driven merchandise as key drivers of success. | For the full fiscal year, net sales are down 3.4% to $1.218 billion, with comparable store sales declining 2.7% and online sales slipping 4.3% to $197.7 million. | Buckle ended the fiscal year operating 440 stores across 42 states, down slightly from 444 locations a year earlier. |
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| | | | Broadband Connectivity Services | Gogo’s Q4 Revenue Soars on Satcom Direct Acquisition, Stock Gains 15% in Premarket Trade | | Gogo Inc. (NASDAQ: GOGO) reported record-breaking fourth-quarter revenue, driven by its recent acquisition of Satcom Direct and strong demand for its AVANCE connectivity solutions. | The in-flight broadband Internet service provider posted total revenue of $137.8 million for Q4 2024, marking a 41% year-over-year increase. | Service revenue surged 47% to $118.8 million, while equipment revenue climbed 12% to $19.0 million. | Gogo’s stock is up nearly 15% in early trade. | However, Gogo also reported a net loss of $28.2 million for the quarter, compared to a net income of $14.5 million in Q4 2023, due to $46.8 million in pre-tax expenses related to the Satcom Direct acquisition. | Adjusted EBITDA is at $34.0 million. | Operationally, the company saw continued growth, with 4,608 AVANCE aircraft online (up 16% year-over-year) and a record average revenue per user (ARPU) of $3,500. | Additionally, Gogo secured FAA PMA authorization to begin shipping its new Galileo HDX antenna in Q1 2025. | For 2025, Gogo projects revenue between $870 million and $910 million, adjusted EBITDA of $200 million to $220 million, and free cash flow in the range of $60 million to $90 million. |
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| | Movers and Shakers | | Radius Recycling, Inc. [RDUS] - Last Close: $13.66 | Radius Recycling is a leading metal recycling and steel manufacturing company. | Its shares are surging 109% in premarket trading after announcing that it will be acquired by Toyota Tsusho America for $30 per share in cash, a massive 115% premium to its last closing price. | My Take: The acquisition is a massive boost to existing investors. Keep a close eye on the stock as the acquisition progresses. |
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| Applied Optoelectronics, Inc. [AAOI] - Last Close: $15.87 | Applied Optoelectronics is a leading provider of fiber-optic networking products for data centers, broadband, and telecom industries. | Its stock is up 52% in early trade after announcing a major deal with Amazon.com which will allow Amazon to purchase up to 7.9 million shares at $23.70 per share, with a total potential investment of $4 billion. | My Take: The company has struggled financially, so this $4B capital infusion by Amazon is a major boost to AAOI. However, concerns regarding its profitability remain. Keep a close watch on how the deal progresses. |
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| Rubrik, Inc. [RBRK] - Last Close: $55.28 | Rubrik is a cybersecurity major. Its shares are up 18% in premarket trading today after reporting a strong fourth quarter, with total revenue up 47% to $258.1 million, beating expectations. | Subscription revenue jumped 54%, and the company’s annual recurring revenue reached $1.09 billion. | My Take: After a disastrous Q1, both revenue and net margins have picked up for Rubrik. The stock is up 78% in the last 6 months. Keep this stock on your radar for sure. |
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| | | | | | That’s all for today. Thank you for reading. If you have any feedback, please reply to this email. | Best Regards, | — Adam Garcia Elite Trade Club |
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