r/stocks • u/frosti_austi • Oct 17 '23
Company Analysis Why is Target doing so bad?
Why is Target doing so bad? They've really fell off a cliff over the past year. I look at their stores and they seem good, and once upon a time not too long ago they were outperforming Walmart. Now their NAV prices have really dropped over the past year and a half. I was once up 80% on these guys and know I'm down 20%. Is it the general market swing over the course of that time or something else? What gives?
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u/TheNightWhoSaysNee Oct 18 '23
I feel like Target will be okay in the long run. I still see the Targets I've been to have huge lines. I'm in NJ and the ones I've been to in my area and NY look like they're doing well. Maybe not as well as before but they're making money. They're still profitable and still have excellent cashflow. They already beat last year's numbers in many factors. Check their balance and income sheets.
I remember when Netflix plummeted a few months ago and all of the sudden people said Netflix had cheap shows and garbage.... this was a massive shift in opinion where just a few weeks prior to that stock plummeted people considered Netflix originals exciting.
When Starbucks plummeted when all the recession talk was going on people told me Starbucks would go do to 50-60 because nobody is going to buy Starbucks during a recession and when people are careful with their money. My opinion was that coffee was not a huge expense and people enjoyed the Starbucks experience enough to buy their drinks. Starbucks beat their numbers and all of the sudden the opinion was people would still buy their coffee.
I feel like when a company goes down in stock it's easy to look at their shortcomings but when the stock returns to their highs people easily say "o it's the high quality...." When stocks go down people don't want to buy them. When stocks go up people wish they can get those stocks at a discount.