In “Legendary Days: Adventures in San Diego” (May 16), I talked about reading about CAVA (CAVA), an up and coming fast casual, Mediteranean style cuisine restaurant, which Barron’s listed as one of three possible “The Next Chipotles”. I was impressed by the food at the La Jolla location and have been watching the stock closely ever since. They reported 1Q24 earnings Wednesday afternoon.
Same store sales were only +2.3% – but they were facing a brutal comp from the year ago quarter of +28.4%. They raised guidance for full year same stores sales and Adjusted EBITDA. While the stock got ahead of itself running into the report and is -4% in the premarket, the story is very much intact. I will hold my stub of a position and look to accumulate more opportunistically in the months and years ahead.
Nvidia (NVDA) is currently driving the entire market – up 20% in the last three days since its 1Q24 earnings repot Wednesday afternoon. The stock is now up nearly 200% over the last year and is currently 81% above its 200 DMA. This kind of action is unsustainable and characteristic of blow off tops. I expect NVDA to roll over shortly and take some air out of the market when it does.
$265 billion Salesforce (CRM) is scheduled to report 1Q24 earnings after the close Wednesday. They guided revenue growth to 11% three months ago. With the stock at 28x current year EPS guidance, I see no reason to be long the stock here.
