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Stock impact report

3 Consumer Stocks We Think Twice About [Yahoo! Finance]

PLAYSTUDIOS, Inc. - Class A (MYPS) 
Company Research Source: Yahoo! Finance
Over the past six months, it seems like demand trends are working against their favor as the industry has tumbled by 4.5%. This performance is a stark contrast from the S&P 500's 5.6% gain. Investors should tread carefully as many companies in this space are also unpredictable because they lack recurring revenue business models. Taking that into account, here are three consumer stocks we're steering clear of. PlayStudios (MYPS) Market Cap: $64.19 million Founded by a team of former gaming industry executives, PlayStudios (NASDAQ:MYPS) offers free-to-play digital casino games. Why Are We Out on MYPS? Annual revenue declines of 1.2% over the last five years indicate problems with its market positioning Historically negative EPS casts doubt for cautious investors and clouds its long-term earnings prospects Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital At $0.51 per share, PlayStudios trades at Show less Read more
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