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Royal Assets - Two Stocks to Buy Now Based on Their Strong Earnings Report
Quarterly results don't frequently affect a company's investment thesis, but they might occasionally persuade certain investors of what others have previously seen.
In reality, similar reasons apply to both Teladoc and Roku. Let's look at why these firms are worth investing in right now.
1. Teladoc Health Services
Teladoc, like other telemedicine experts, saw its stock rise with its financial performance in the early days of the epidemic. Patients began using telehealth for basic medical requirements such as prescriptions, consultations, and referrals. However, after everything returned to normal, Teladoc's business began to decline. This, along with Teladoc's enormous net losses last year, caused the company's stock to plummet.
However, as seen by its second-quarter results, the corporation is on the mend. Teladoc reported sales of $652.4 million, a 10% increase over the previous year. That was not where the majority of the development was made. Teladoc reported $72.2 million in adjusted profits before interest, taxes, depreciation, and amortization (EBITDA), a 54% increase over the prior-year quarter. The net loss per share of $0.40 was much lower than the $19.22 loss per share recorded in Q2 2022.
Roku, the streaming powerhouse, has had severe challenges in recent years. For starters, its costs increased owing to inflation and supply chain concerns. Instead of passing on these extra expenses to users by raising the pricing of its flagship streaming devices, Roku chose to absorb them. Second, when advertisers reduced their spending, Roku's income dropped.
These two factors explain why Roku's stock has underperformed over the last year, although the company's second-quarter earnings indicated improvement. Roku reported sales of $847.2 million, up 11% year on year. That's a substantially faster growth rate than Roku has seen in the prior two quarters. Roku's net loss per share of $1.02 was much lower than the $2.04 posted in the previous fiscal year's similar quarter.
Royal Assets Pte. Ltd. (https://royalassetsltd.com) is a family business that treats its investors like family. Honesty and transparency are core to our Investment Philosophy and key to our service offering.
Royal Assets Pte. Ltd.