A pet company posted a weaker-than-expected report, while a tech giant beat in the quarter and its outlook, the Action Alerts PLUS team notes.
The Action Alert PLUS team, in a commentary on Wednesday, took note of a pet-related company’s lagging earnings report and a chipmaker’s better-received numbers.
The weaker-than-expected report came from online-pet-products retailer Chewy (CHWY) – Get Chewy, Inc. Class A Report.
“Despite auto-ship sales increasing 21.2% year over year, Chewy missed January quarter consensus expectations,” the AAP team wrote.
Cost inflation depressed results in the latest quarter and remains an issue, the company said. “This supports our view that costs will be a key item to watch” going forward, the AAP team said.
On the other side, computer-memory maker Micron Technology (MU) – Get Micron Technology, Inc. Report reported earnings and guidance that beat expectations.
“Micron shared that memory and storage revenue has outpaced the rest of the semiconductor industry over the last two decades, and it expects this trend to continue over the next decade,” the Action Alerts PLUS team wrote.
“Micron shared data center is now the largest market for memory and storage, eclipsing mobile, and it sees data center demand growth outpacing the broader memory and storage market over the next decade.”
Micron’s news also is positive for chipmakers Nvidia (NVDA) – Get NVIDIA Corporation Report, Marvell Technology (MRVL) – Get Marvell Technology, Inc. Report, Advanced Micro Devices (AMD) – Get Advanced Micro Devices, Inc. Report and Skyworks Solutions (SWKS) – Get Skyworks Solutions, Inc. Report, the AAP team said.
It also saw good tidings for electric-vehicle-charging network ChargePoint (CHPT) – Get ChargePoint Holdings, Inc. Class A Report. European grocer Carrefour (CRERF) plans to install many stations by 2025.
“We see this as part of the European opportunity for ChargePoint given estimates that point to Europe needing an estimated 65 million EV chargers … to handle the huge growth forecast in EVs … on Europe’s roads,” the AAP team wrote.
