🗞 8 Stocks with Soaring Revenue but Plummeting Stock Prices

Happy Sunday!

Here’s what’s on the docket for this week’s newsletter:

• 🧬 23andMe’s Board resigns

• 📦️ Amazon calls all employees back to office

• 📉 8 Stocks with soaring revenue but plummeting stock prices

And much more, let’s dive in!

News of the week

• 🧬 All Board Members Resign from 23andMe: On Tuesday, every single independent director at 23andMe signed off on a joint letter of resignation to the CEO and Co-founder Anne Wojicki. Wojicki, who helped found the DNA testing company in 2016, tried to take the company private in July just 3 years after the company went public via a SPAC.

  Wojicki’s proposal was rejected by the board for not offering a large enough premium for shareholders. As a part of the rejection, the board asked for a revised proposal that included further diligence and fully committed financing.

  In the resignation letter, the board stated “After months of work, we have yet to receive from you a fully financed, fully diligenced, actionable proposal that is in the best interests of the non-affiliated shareholders.”

  23andMe Holdings’ stock is down more than 97% from its highs.

• 📦️ Amazon orders employees back to the office 5 days a week: On Monday, Amazon CEO Andy Jassy sent a memo to the company ordering all employees back to the office for all weekdays. As a part of the memo, Jassy wrote “we continue to believe that the advantages of being together in the office are significant”.

  For those that started with Amazon throughout the pandemic, a hybrid work environment is all they’ve experienced. However, Jassy and other Amazon executives appear confident that the decision will help increase productivity across the workforce. The memo also stated that the company is planning to reduce its number of managers by ~15% in order to improve efficiency and reduce bureaucracy.

• 🛫 Boeing is losing $500 million per week: Last week, 30,000 unionized workers at Boeing walked off the job marking the first union strike for the airplane manufacturer in 16 years. The labor strike comes at an already difficult time for Boeing, and the company has quickly instituted steps to preserve cash.

  On Monday, it was announced that Boeing had started a company-wide hiring freeze and a halt on any non-essential staff travel. And by Wednesday the company announced that it was going to start furloughing tens of thousands non-Union Boeing employees. One analyst estimates that this shut down on 737 production could cost Boeing ~$500 million every week. That’s not great considering the company has already burned through much of the cash that it raised throughout the pandemic.

  Boeing’s stock was is down 11% this month.

8 Stocks with Soaring Revenue and Plummeting Stock Prices

Over the long run, revenue growth tends to be a good way to measure the growth of a company, especially when profits follow suit.

However, not all revenue is created equal. For one reason or another, some companies that are able to successfully grow the top line are unable to generate positive returns for shareholders.

Here are 8 examples:

1.) Alibaba Group

Based in China, Alibaba is one of the world’s largest online wholesale marketplaces.

Over the last 10 years:

• Revenue +1,445%

• Stock Price -30.7%

2.) Zoom Video Communications

Zoom is the most popular video conferencing platform globally by users.

Over the last 5 years:

• Revenue +853%

• Stock Price -4.5%

3.) Roku Inc.

Roku is the most popular connected TV operating system in the United States today.

Over the last 5 years:

• Revenue +314%

• Stock Price -34%

4.) HelloFresh

HelloFresh SE is a German meal-kit company that delivers to consumers homes.

Over the last 5 years:

• Revenue +376%

• Stock Price -49%

5.) Lightspeed Commerce

Lightspeed provides point-of-sales solutions and commerce enabling software for small and midsize businesses primarily in the US and Canada.

Over the last 5 years:

• Revenue +1,050%

• Stock Price -53%

6.) Twilio Inc.

Twilio provides communications features such as voice, text, chat, and video functionality to developers for integration in their applications.

Over the last 5 years:

• Revenue +294%

• Stock Price -58%

7.) Teladoc Health

Teladoc operates a telehealth solution that lets physicians easily meet with their customers online.

Over the last 5 years:

• Revenue +393%

• Stock Price -86%

8.) Just Eat Takeaway

Just Eat Takeaway is a online food delivery marketplace that is mostly popular in Europe.

Over the last 5 years:

• Revenue +1,486%

• Stock Price -87%

Platform Update

Users asked for it, so we brought it back.

Goodbye Dropdown Menus 👋 

Hello Tabs 😍 

After launching FinChat V4 a couple of weeks ago, we got plenty of feedback about some of our design decisions.

In particular, customers weren't loving the dropdown menus.

That's why today, we've officially relaunched tabs across the platform.

Meme of the week

The Gen Z mind could never comprehend

On Thursday, apparel giant Nike announced that it was hiring Elliott Hill to replace John Donahoe as its CEO.

Hill is coming out of retirement after working for Nike for more than 20 years. He started at the company as just an apparel sales intern in 1988, but slowly worked his way up to President of Consumer & Marketplace before retiring.

In today’s digital world where all job openings are readily available, “job hopping” has become increasingly common and stories like Hill’s have become less and less common.

Nike’s stock jumped 7% on the news.