Waitr Holdings Inc. (NASDAQ: WTRH) is a platform for the online food order and delivery service which operates over and connects the local restaurants and the customers in the southeast region of the United States. The foundation of this company was laid in the year 2009 and it currently has its headquarters located in Lake Charles, Louisiana, United States. Lately, the company revealed its fourth-quarter earnings report and it fell short of the expectations of the analysts and eventually led the stock to go down for some time. In consideration of this, let us analyze that whether Waitr Holdings is a good company to invest in or not?
Waitr Holdings Inc. (NASDAQ: WTRH): 2020 Final Quarter Earnings Report
The revenues of the company came out to be $46.8 million which was an increase of 8.6% on a year-over-year basis but the company failed to match the estimated mark of $51.1 million while the earnings were 2 cents per share which were lesser than that estimated (4 cents per share) and also on a year-over-year basis, the company has encountered a loss of 28 cents in the case of earnings. This led the stock to go down. During the pre-market session on Tuesday, the shares of Waitr Holdings fell by as much as 14.5%.
Waitr Holdings Inc. (NASDAQ: WTRH):
- 52 Week Range: $0.8120 – $5.8500
- Average Volume: 3,668,963
- Market Capital: $318.213B
- Forward Dividend and Yield: N/A (N/A)
Waitr Holdings Stock: What lies ahead?
This earnings report of the fourth quarter has brought about a disappointment amongst the investors and analysts. The company otherwise is in a business that has high prospects of growing well. If we talk about the coronavirus pandemic and its impact, then definitely it is one of the major reasons which have brought the company down very recently. The investors can hope that the firm will recover when the situation normalizes because now, there are vaccines that have been authorized and approved and are also being brought into action. The restaurants have now started operating well and the food delivery service will benefit because the risk involved greatly reduces.
When to Invest in Waitr Holdings Stock?
As of now, an investment in this stock is risky. First of all, it is a penny stock and penny stock investments always come with a risk and then, the latest earnings report of the company. Both these factors make the company’s stock not favorable enough to invest in the present scenario. Penny stocks should be chosen with utmost care because they can let the money down at any time. The stock market is always volatile and unexpected things happen. The investors, therefore, always have to stay very aware, alert, and wise while choosing any company’s stock for investing. The risk factor reaches a higher extent in the case of penny stocks and that is why Waitr Holdings stock is not a good option to invest in right now.