Earnings Predictions for the Week Beginning November 09, 2020

Profiting From Trading Options!

Compare Exiting Before and After Earnings!

by Ian Harvey

Sunday, November 08, 2020


Options Trades to Consider Based on Expected Earnings Reports:

Tuesday, November 10, 2020

Option trade to consider: Buy the JMIA NOV 20 2020 20.000 CALL at approximately $2.35 (up to $2.50).

Option trade to consider: Buy the DDOG NOV 20 2020 105.000 CALL at approximately $5.70 (up to $6.00).

Wednesday, November 11, 2020

Option trade to consider: Buy the GRWG NOV 20 2020 25.000 CALL at approximately $1.60 (up to $1.80).

Thursday, November 12, 2020

Option trade to consider: Buy the PLTR NOV 20 2020 14.000 CALL at approximately $1.45 (up to $1.60).

Friday, November 13, 2020

Option trade to consider: Buy the DKNG NOV 20 2020 42.000 CALL at approximately $3.30 (up to $3.70).


Tuesday, November 10, 2020


Africa's e-commerce company Jumia Technologies (NYSE:JMIA) will report earnings before the market opens. The consensus estimate is for a loss of $0.60 per share on revenue of $45.98 million.

Overall earnings estimates have been revised higher since the company's last earnings release.

Shares of Africa's e-commerce company Jumia Technologies soared 87.2% higher in October, according to data provided by S&P Global Market Intelligence. Since the end of October, the stock has surged almost 20% more and is now up around 160% year to date, trouncing the market. This stock was left for dead in 2019 after allegations of fraud surfaced, but Jumia got a little help from an old foe to win investors back.

Citron Research is a notorious short-seller, but in an Oct. 9 tweet on Twitter, the research firm said it does not recommend shorting Jumia stock. That's significant because in 2019, Citron was making the allegations of fraud in the first place. Citron's reversal of opinion sent Jumia stock higher, and the firm promised a full report the following week.

Citron called Jumia stock "the generational buy." The firm notes how the COVID-19 pandemic is pushing the need for e-commerce and digital payments on the African continent -- all needs that Jumia is positioned to meet. And it argues the company is learning by copying the blueprints of successful companies like Amazon and Sea Limited. Citron believes these factors and more mean Jumia "should be worth minimum $7 billion or $100 per share" right now.

Moving Forward.....

The company struggled during its first year as a public company, with stagnant growth and rising costs causing it to burn through a lot of cash.

As a result, management made the decision to exit some markets in Africa and to focus on the geographies in which it was making the most progress toward profitability. In the second quarter, Jumia reported smaller losses than in prior quarters, a product of both cost-cutting and revenue growth.

The coronavirus pandemic has helped act as a catalyst for e-commerce all over the world, but in Africa, where last-mile logistics are notoriously difficult and e-commerce growth has been more difficult, Jumia could be gathering a lot of momentum as millions of people give online shopping a try for the first time.

Future Partnership: Alibaba and Softbank could be interested in becoming a strategic partner or investor in Jumia.

Such an investment would provide a direct channel for Chinese goods into the African market.

The stock soared on Oct. 8 after announcing that a new platform called Jumia Games, a gaming platform in collaboration with technology company Mondia, was launching in five countries for JumiaPay users.

Investors are cheering this news because it appears Jumia is following a game plan that's straight out of the playbooks of successful e-commerce leaders from around the globe.

Option trade to consider: Buy the JMIA NOV 20 2020 20.000 CALL at approximately $2.35 (UP TO $2.50).

 (for those members requiring further guidance.....

STOP-LOSS – $1.00

SELL – $4.70)


Monitoring and analytics platform provider Datadog Inc (NASDAQ: DDOG) will report earnings after the market closes. For the quarter, the company expects to report earnings between breakeven and 1 cent. The Consensus Estimate for earnings is currently at 1 cent per share, unchanged over the past 30 days. The company had reported break-even earnings in the year-ago quarter.

Also, the company expects revenues between $143 million and $145 million indicating year-over-year growth of 50% at the midpoint.

The consensus mark for the top line is currently at $144.2 million, implying 50.4% growth from the figure reported in the previous quarter.

Datadog’s earnings beat the Consensus Estimate in the trailing four quarters, the average being 362.5%.

DDOG topped the Q2 earnings estimate in early August. The firm’s second quarter sales jumped 68% and its large customers ($100k+ in annual recurring revenue) surged from 594 in the year-ago period to over 1,000.

The company completed its initial public offering on Sep 19, 2019.

Datadog is a SaaS firm that “integrates and automates infrastructure monitoring, application performance monitoring and log management to provide unified, real-time observability of our customers’ entire technology stack.”
Influencing Factors.....

Datadog has benefited from increased adoption of its cloud-based monitoring and analytics platform.

The company’s has benefited from high exposure to industries benefiting from the coronavirus-led social distancing guidelines like streaming media, gaming, food delivery and e-commerce.

The company ended second-quarter 2020 with 1015 customers with ARR of more than $100K, up 71% year over year, reflecting solid demand for its solutions like Network Performance Monitoring and Real User Monitoring.

Datadog’s expanding portfolio of integrated solutions has been a key catalyst in expanding clientele. In the third quarter, the company achieved the AWS Outposts Ready designation, part of the Amazon Web Services (AWS) Service Ready Program. This designation recognizes Datadog’s successful integration with AWS Outposts deployments.

Datadog also announced support for ingesting log data via Amazon Kinesis Data Firehose, a solution from Amazon Web Services (AWS) that reliably loads streaming data into data lakes, data stores and analytics tools. With support for Amazon Kinesis Data Firehose, Datadog allows customers to stream logs from AWS services to Datadog directly from the AWS Management Console and APIs.

Enhanced features of Watchdog and strengthening serverless capabilities are helping push DDOG shares upwards.

Datadog has a growing international presence.

Datadog entered into a strategic partnership with Microsoft Azure. As part of this launch, Datadog’s availability in the Azure console as a first- class service will allow Azure customers to implement Datadog as a monitoring solution for their cloud workloads through new streamlined workflows that cover everything from procurement to configuration.

The company achieved “In Process” status on the Federal Risk and Authorization Management Program (FedRAMP) Marketplace for moderate-impact SaaS. Datadog is currently working with the U.S. Department of Veterans Affairs and the General Services Administration (GSA) FedRAMP Program Management Office (PMO) to achieve FedRAMP Authorization status for Moderate Impact. This follows Datadog’s earlier FedRAMP Authorization for Low Impact SaaS workloads.

Moreover, Datadog acquired Undefined Labs, a testing and observability company for developer workflows. This acquisition extends Datadog’s existing platform into development environments and will provide organizations with better tooling and monitoring in continuous integration and deployment workflows.

Summary.....

The company was already thriving prior to the pandemic, but accelerating adoption of the cloud has kicked that into overdrive.

Option trade to consider: Buy the DDOG NOV 20 2020 105.000 CALL at approximately $5.70 (UP TO $6.00).

(for those members requiring further guidance.....

STOP-LOSS – $2.30

SELL – $11.40)


Wednesday, November 11, 2020


GrowGeneration Corp (NASDAQ: GRWG), a marijuana stock, will report earnings  after the market closes. This company is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents no change from the year-ago quarter.

Revenues are expected to be $47.26 million, up 117% from the year-ago quarter.

The consensus EPS estimate for the quarter has been revised 4.55% higher over the last 30 days to the current level.

For the last reported quarter, it was expected that GrowGeneration would post earnings of $0.04 per share when it actually produced earnings of $0.06, delivering a surprise of +50%.

Over the last four quarters, the company has beaten consensus EPS estimates two times.

The once widely controversial issue of marijuana legalization has been decidedly eclipsed by this year’s divisive presidential race, though voters in five states broadly adopted legalization measures Tuesday. Recreational or medical use, or both, was on the ballot in Arizona, Mississippi, Montana, New Jersey, and South Dakota.

Marijuana legalization in the additional U.S. states is estimated to grow the industry’s size by $9 billion, according to cannabis market firm New Frontier Data.

GrowGeneration has everything going for it. It has a strong balance sheet, it has reported record revenue and net income for 10 consecutive quarters, and it continues to announce new acquisitions and expand into new markets.

Even during a pandemic, GrowGeneration stock continues to thrive, advancing 348% year-over-year, up 342% since the start of 2020, and soaring 590% since hitting March lows.

GrowGeneration Corp is the biggest hydroponic equipment supplier in the U.S., with 29 locations in 11 states, including California, Colorado, Michigan, Nevada, Washington, and, most recently, Arizona. The company is also actively targeting Illinois, Missouri, New Jersey, New York, and Pennsylvania.

In addition to a growing list of traditional bricks-and-mortar locations, GrowGeneration also operates the online superstore HeavyGardens.com.

The Denver-based company sells its more than 10,000 hydroponics products to individual home growers and large multi-state operators. GrowGeneration also sells its own private-label products, sold under the “Sunleaves” brand.

GRWG is expected to expand its private-label products and sell them through other retailers.

The company is backed by private-equity from the founders of Cronos Group Inc (NASDAQ:CRON), Gotham Green Partners, Navy Capital, and Merida Capital Partners.

On August 10, the company surpassed $100.0 million in year-to-date revenues.

It purchased the assets of Emerald City Garden, located in Concord, California.

On August 12, 2020, GRWG entered into a partnership with Whole Cities Foundation, committing to donate free product to develop urban farms across the U.S.

On October 12, GRWG announced it had entered the Arizona market with the acquisition of Hydroponics Depot, the largest indoor and outdoor garden center in Phoenix.

With this acquisition, GrowGen’s portfolio of hydroponic garden centers now includes 29 stores across 11 states.

Also, GrowGeneration, which has been rather acquisitive lately, is adding another regional asset to its portfolio. The company announced Tuesday that it has purchased Big Green Tomato, a two-store hydroponics supply chain based and operating in Michigan.

With its other Michigan assets, GrowGeneration now has six retail stores in the state. Collectively, says the company, they should produce over $40 million in yearly revenue. GrowGeneration's total store count throughout the country is now 31; Michigan is tied with California for the highest number per state. Ultimately, GrowGeneration aims to operate retail outlets in every state.

Summary.....

GrowGeneration continues to be one of the best cannabis plays in the U.S. Even during the pandemic, it was able to report record revenue and profitability.

Thanks to new acquisitions and products and a growing customer base, it should continue to report record results in the fourth quarter and 2021.

GRWG also has tremendous long-term growth potential, especially once recreational adult use marijuana is legalized. And that could be much sooner than later.

GrowGeneration has a market cap of $858.20 million, a P/E ratio of 974.99 and a beta of 2.32. GrowGeneration has a fifty-two week low of $2.62 and a fifty-two week high of $22.88. The company has a 50 day simple moving average of $16.09 and a two-hundred day simple moving average of $12.63.

Option trade to consider: Buy the GRWG NOV 20 2020 25.000 CALL at approximately $1.60 (UP TO $1.80).

(for those members requiring further guidance.....

STOP-LOSS – $0.65

SELL – $3.20)


Thursday, November 12, 2020


Data-mining firm Palantir Technologies Inc (NYSE: PLTR) will report earnings after the market closes. The report will be for the fiscal Quarter ending Sep 2020. Based on  analysts' forecasts, the consensus EPS forecast for the quarter is expected to be $0.04.

The Palantir IPO lockup is 20% and then allowed to trade immediately 80% in the future. But the company timed the 80% to be released right around when it will release its numbers, why do you think it would do that? It is obviously expecting some good things coming. And we aren't the only ones with that opinion.

Palantir, a software and data company co-founded by Peter Theil, went public in late September and mostly treaded water in its first month on the New York Stock Exchange. But that has all changed last week, as the stock has soared higher in recent days.

About Palantir.....

Palantir Technologies Inc builds and deploys software platforms for the intelligence community in the United States to assist in counterterrorism investigations and operations.

It offers Palantir Gotham, a software platform for government operatives in the defense and intelligence sectors, which enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants, as well as facilitates the handoff between analysts and operational users, helping operators plan and execute real-world responses to threats that have been identified within the platform.

Influencing Factors.....

Palantir's Gotham and Foundry platforms connect, integrate and organize data hidden within disparate legacy systems to make better decisions, drive better outcomes and build better applications.

The near-term opportunity is likely limited to the largest government agencies and commercial enterprises globally, given the large-scale nature of the company's deployments, the analyst said. Growth has inflected at a $1 billion revenue run rate, as recent court decisions have changed the way pre-packaged software is bought by the federal government in Palantir's favor. 

The introduction of the Apollo continuous delivery platform has reduced the time and number of engineers needed to install, deploy and manage the customer-facing platform

This has helped margins ramp rapidly over the last year, shifting the company's positioning more toward software from being a consulting/services firm. 

Despite this unique combination of accelerating revenue growth and quickly expanding margins, Palantir shares are trading at a discount to peers. 

As such, the level of discount to peers implied by current trading as too severe is creating an attractive risk/reward. 

Success with commercial enterprises could represent upside to estimates. 

There is also a path to software-like long-term margins of 35%+ as growth slows to ~11%. 

Summary.....

It's been a fabulous two days, Thursday and Friday, for holders of Palantir, with shares of the data analytics company jumping more than 30% since close of business Nov. 4; they're up nearly 20% on Friday afternoon. There isn't any news to explain the move. Rather, the stock move seems to be caused by growing investor interest in this newly public company.

Option trade to consider: Buy the PLTR NOV 20 2020 14.000 CALL at approximately $1.45 (UP TO $1.60).

(for those members requiring further guidance.....

STOP-LOSS – $0.60

SELL – $2.90)        


Friday, November 13, 2020


Online sports and gaming name DraftKings (NASDAQ:DKNG) will report earnings before the market opens.The consensus estimate is for a loss of $0.64 per share on revenue of $132.19 million; but the Whisper number is a little better at ($0.60) per share.

Shareholders don't have much room for complaint as of right now, of course, given nearly 120% returns since it went public in April via a special-purpose acquisition company (SPAC). But it was up even more – it has lost nearly a third of its value since early October – and has only recently regained momentum after Maryland, Louisiana and South Dakota all voted to allow sports betting.

"DKNG has sold off recently due to an abundance of supply (2 lock up expirations Oct 20th / Jan 5th and a recent secondary) as well as nuances around monthly reported state GGR (low hold) that we think some investors were likely trying to navigate," write Credit Suisse analysts, who have the stock at Outperform. "We would be adding to the stock here in what we feel is an underappreciated event path," which includes the Masters and "The Match III" (Mickelson and Charles Barkley vs. Peyton Manning and Steph Curry), accelerating opportunities in Ontario, and its final lockup expiration on Jan. 5.

"Though we don't expect DraftKings to post a profit this year or next, we do look for profitability in 2022 and solid growth over the remainder of the decade as the company benefits from economies of scale," writes Argus Research's John Eade, who rates the stock at Buy. "We view DKNG as appropriate only for risk-tolerant investors as part of a diversified portfolio."

DraftKings has announced an exclusive, multi-year relationship with golfer Bryson DeChambeau.

Bryson is currently ranked No. 6 in the Official World Golf Ranking and is coming off his first major championship at the U.S. Open in September, 2020.

According to DKNG “Bryson DeChambeau will become the first active professional golfer to represent the digital sports entertainment and gaming company via an integrated brand, content, marketing, and VIP centric collaboration that will feature Bryson DeChambeau as the face of DraftKings golf.”

At DraftKings, golf remains the fourth-most-popular sport for daily fantasy while golf sportsbook handle has grown over ten times year over year, the company reveals.

Influencing Factors.....

The sports world proved that it can handle operations within the Covid-19 world. Perhaps that will change if cases continue to spike, but for now, DraftKings should avoid an environment like late Q1 and early Q2 2020.

Let’s also not forget about the company’s exclusive deal with the New York Giants. Or that DraftKings opened to the first betting shop in a U.S. arena. The D.C. arena is home to the NBA’s Wizards, NHL’s Capitals and WNBA’s Mystics.

While not the main driver of business, this brick-and-mortar approach could be a solid business plan down the road — particularly when fan traffic picks back up.

Also, DraftKings got Michael Jordan involved as a special advisor to the board and as an investor. Also, the company inked an exclusive content deal with the king of sports, ESPN.

Analysts thoughts.....

Shares in DraftKings have plunged 40% in the last month, and according to some analysts this weakness represents a buying opportunity. That’s with a Moderate Buy analyst consensus scoring 13 Buys versus 6 Holds. Meanwhile, the $58 analyst price target implies 62% upside potential over the coming year.

“We believe the company has been successfully positioning itself to establish early market share in new states and will continue to do so in upcoming state launches, starting with Michigan, and eventually in other key markets expected to go live in the coming years” comments Northland analyst Greg Gibas.

He has a buy rating on the stock and $50 price target. The analyst adds that key partnerships will help to secure DKNG as a top-of-mind brand.

Summary.....

DraftKings’ original mainstay—daily fantasy sports games where users win money by picking the best-performing players—exists as a kind of Trojan Horse to attract users to its even more lucrative online gambling alternatives. Attracting fantasy customers to online sports betting can translate to more iGaming customers.

The company has a strong market share in both online sports betting and U.S. real money iGaming, or online casino gambling. Both of those markets can achieve compound annual growth rates greater than 50% through 2025.

Option trade to consider: Buy the DKNG NOV 20 2020 42.000 CALL at approximately $3.30 (UP TO $3.70).

(for those members requiring further guidance.....

STOP-LOSS – $1.35

SELL – $6.60)


An Important Note: That these suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.

It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented.

If you wish to receive more options trading recommendations similar to this, which will help boost your portfolio strategy, check out the other  memberships available at Stock Options Made Easy.

When To Exit A Trade Based On Earnings?.....

It is also worth considering, when options trading earnings reports – “Do we exit on already existing profits or leave the companies to report their earnings and hope for bigger profit?” 

As most traders realize, there is a 50/50 chance that the company stock price could go either way after reporting earnings – even if the report is good, the stock price could reverse – and if you hold a call option, means depletion of an already good profit if it exists. A similar situation can be found if you hold a put option, and a report is not that sound (and you expect a profit from this) but the stock price can, at times move upwards due to traders bias or other external conditions......READ MORE.....

The Decision Is Yours!

Before You Trade Consider This Strategy……

"Trading Capital Management" is a key component of your trading strategy. The strategy, on which we base our trades to achieve maximum profit, and to minimize loss, is contingent on using an equal amount of money for each trade.

……continue reading this article……


”Success is simple. Do what's right, the right way, at the right time.”

Option Tip for your Success!

Options traders are not successful because they win.

Options traders win because they are successful.


Best of Trading,
Ian Harvey
Director of Stock Options Made Easy

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