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Thankful to China for this week’s most interesting stock market stories; Ambarella won, Tiffany lost!
Stock Card's winner and loser of the week
This week we lived amid the so-called tariff war between the U.S. and China. It's no surprise that China has been the fuel of the two of the most interesting stock market stories of the week. For one company, China is turning the fortune. For another, it is causing its dismay.
Winner: Ambarella Inc (Ticker: AMBA), up 19%
After losing ~42% of its value since the beginning of 2018, the patient investors in the company are celebrating a 19% growth of the stock price during the week. The company is a designer of high-quality, compact video processing chips. And, GoPro has been its biggest customer. As GoPro struggled to stay relevant and grow beyond being just a one-product wonder, Ambarella was not able to move out of GoPro's shadow. This week, the company announced its quarterly earnings and a glimpse of light at the end of the tunnel has emerged. It announced its first major win in the automotive market and new design contracts in the computer-vision system-on-a-chip market with two tier-1 Asian customers. Who are those customers? They keep them unnamed. I don't blame them. In this heated, politically-charged environment, the less you say about your customers in Asia, the less you are in danger of spooking the investors away. It looks like China is turning the company's fortune around.
Visit Ambarella's Stock Card
Loser: Tiffany Co (Ticker: TIF), down more than 12%!
One-third of Tiffany's revenues is all thanks to the luxury-loving Chinese customers. This week the company announced such revenues are on the decline. And, when the investors heard that revenue is in danger, they freaked out. Tiffany's stock lost 12% of its value compared to the beginning of the week. The company is planning to invest significantly in its New York flagship store and historically it has been able to maintain its brand recognition. And, with luxury goods, their brand is everything. If Tiffany can convince its customers that having Tiffany-branded jewelry shows their high-society status, this lower share price is not a big deal.
Visit Tiffany's Stock Card
Two new sections on all Stock Cards
Which section on Stock Card is your first stop when you look up the Stock Card of a company? Our favorite section is the "company strength". That box tells us most of the things we need to know about whether the company is worthy of a spot in our long-term portfolio. Which section is your favorite? We just added Analyst Consensus and Key information sections to all Stock Cards. Look up Stock Card of your favorite company and see how these new additions can help you make better decisions without time-consuming research.
How To Invest YouTube episode
When do you sell the stock you own in your long-term portfolio? When-to-sell is one of the most common questions that long-term investors ask. It's a difficult decision. As a long-term investor, you'd want to hold onto your stocks for as long as possible. But when you hear everybody talking about selling, or when your stocks' prices fall, it makes you nervous about whether it is time to sell and lock your gains! That's why episode 7 of the How To Invest YouTube series is about three reasons why you may sell your long-term investments.
Stock Card request of the week
One Stock Card request by one of our premium members was extremely fun to publish. It's called MTY Food Group Inc. When I first saw the Stock Card, I yawned and clicked away. Who cares about MTY Food Group? But the company owns thousands of very well-known brands. Have you had a scoop of ice-cream at Cold Stone Creamery? What about some good Tex Mex at Baja Fresh? Well, those are brands that MTY Food owns. The Stock Card also brought so many good memories from the time I lived in Canada. Some of my favorite fast-service mall-food, such as Tiki-Ming and Thai Express are among the brands the company owns.
That's it for this edition! Happy Weekend, folks! Don't forget to share this blog post with your friends if you find it helpful, and connect with us to share your thoughts and ideas!