I am aware of the current hate on ARKK (and frankly lots of it is justified, don't get me wrong).
I bought $TDOC a few months ago after the news on the Goodwill Impairment loss from the Livongo acquisition. Figured it's one of the decent Telehealth plays and was already down 90% at the time. Also, the Goodwill Impairment loss is not relating to cash, and the acquisition of Livongo was made when $TDOC stock was pumped to the max anyways, so I wasn't very worried about that.
Recently, I've gotten into the habit of reading earnings reports of companies I own before checking the quote for the share price after hours, just so that I am not forced into conclusions by the market sentiment.
A few things I read for this earnings release:
• Revenue up YoY at ~18%
• Guidance for FY22 unchanged but potential to land on the lower end given market conditions. Not great but not terrible.
• Goodwill Impairment is still shocking, but nothing particularly new for me there
• Average revenue per member up ~13% YoY
• Operating cash flow up almost 80% – I thought this was super bullish
• Paid membership up 10%
This to me didn't scream “smashed earnings”, but I considered this to be a good earnings release considering fundamentals.
I check the stock price and to my surprise it's down 25%, how does that compute?
Was the market anticipating something much different at the pre-earnings market cap of ~$6.92 billion?
Any thoughts?
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