What Happened?
Shares of e-commerce florist and gift retailer 1-800-FLOWERS (NASDAQ:FLWS) fell 17.3% in the pre-market session after the company reported weak fourth quarter results, with its revenue and EPS fallin below analysts' expectations. Adding to the bad news, the company's full-year EBITDA guidance missed Wall Street's estimates significantly. Management expressed displeasure at the results, which were marred by "a softer than anticipated and highly promotional consumer environment, along with a pullback in corporate gifting orders." Overall, this was a weaker quarter.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy 1-800-FLOWERS? Access our full analysis report here, it’s free.
What The Market Is Telling Us
1-800-FLOWERS’s shares are very volatile and have had 20 moves greater than 5% over the last year. But moves this big are rare even for 1-800-FLOWERS and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 5 months ago when the stock dropped 12.7% on the news that the company reported weak second-quarter earnings results. Its revenue and EPS fell short of Wall Street's estimates, and its full-year EBITDA guidance was underwhelming. Notably, demand for its offerings was impacted by what management considered a weak consumer environment. Overall, this was a weaker quarter.
1-800-FLOWERS is up 4.7% since the beginning of the year, but at $8.17 per share, it is still trading 26.3% below its 52-week high of $11.09 from March 2024. Investors who bought $1,000 worth of 1-800-FLOWERS’s shares 5 years ago would now be looking at an investment worth $507.68.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.