As a result of impressive earnings, shares of
SFIX
shares were up 26% in premarket, it could not be sustained and it sold off losing 50% of its gains by the close. Unfortunatley for SFIX sentiment regarding consumer spending is poor, tariff, supply chain issues and the fact that the economy worldwide is slowing down are all concerns for investors. From a technical perspective the stock has a history of selling off post earnings and the fact that it could not hold above the 200ma is concerning. It is also notable that the stock had a strong rejection off the long term downtrend line (blue), our bias would be that the stock will fill the gap below and possibly test the lower trend-line. With such a high short interest and a lofty P/E it is just not appealing.
AVERAGE ANALYSTS PRICE TARGET $37
AVERAGE ANALYSTS RECOMMENDATION OVERWEIGHT
SHORT INTEREST 26%
P/E RATIO 58
COMPANY PROFILE
Stitch Fix, Inc. is an online personal styling service that delivers personalized Fixes of apparel and accessories to men, women and kids. The company was founded by Katrina Lake and Erin Morrison Flynn in February 2011 and is headquartered in San Francisco, CA.
SFIX
shares were up 26% in premarket, it could not be sustained and it sold off losing 50% of its gains by the close. Unfortunatley for SFIX sentiment regarding consumer spending is poor, tariff, supply chain issues and the fact that the economy worldwide is slowing down are all concerns for investors. From a technical perspective the stock has a history of selling off post earnings and the fact that it could not hold above the 200ma is concerning. It is also notable that the stock had a strong rejection off the long term downtrend line (blue), our bias would be that the stock will fill the gap below and possibly test the lower trend-line. With such a high short interest and a lofty P/E it is just not appealing. AVERAGE ANALYSTS PRICE TARGET $37
AVERAGE ANALYSTS RECOMMENDATION OVERWEIGHT
SHORT INTEREST 26%
P/E RATIO 58
COMPANY PROFILE
Stitch Fix, Inc. is an online personal styling service that delivers personalized Fixes of apparel and accessories to men, women and kids. The company was founded by Katrina Lake and Erin Morrison Flynn in February 2011 and is headquartered in San Francisco, CA.