Hi Jack,
DRO is an extremely volatile stock as subscribers know, its trading 45% below last weeks high but its still up a whopping 400% year-to-date.
- The company delivered record 1H revenue of $24.1m, which was +110% on 1H23 but a miss compared to some analyst expectations. We use a Bloomberg terminal to dig into earnings vs expectations, with both James & Shawn running a terminal. They are expensive at nearly 4k per month each, so we have tried to offer a more cost-effective solution through the MM site by charting earnings trends and forecasts + if you download the detailed company PDF under the forecasts tab, it does provide a lot of info.
- DRO has been clear it expects the CY24 result to be heavily weighted to the 2H, which is commonly called a skew – companies growing earnings will naturally have this skew, while over time, 1H/2H skews become obvious for some more seasonally impacted stocks.
The big issue is DRO’s current valuation which will lead to ever increasing scrutiny over its short-term performance and future contract announcements, hence we expect ongoing share price volatility.
- DRO’s shares recently collapsed because of a tweet saying the $2.60 was on a “wild” valuation that could end in disaster.
Unfortunately, rhetoric and speculation is likely to drive DRO’s share price more than earnings into Christmas.
