May 28th, 2021 - Why did Costco (COST) drop? - YouTube

>> Hoda: Hey fellow Stock Cardians.

Happy Friday, May 28th, 2021.

I'm Hoda, Stock Card's CEO, reporting to you from a green but relatively flat stock market.

I looked into why the stock market indices lost some momentum towards the end of the

day and discussed the earnings reports by Veeva

Systems (VEEV), Salesforce.com (CRM),

and Costco (COST), two of which had a green day while the other fell despite all-around

solid Earnings reports.

[Overall Market]

>> Hoda: The stock market indices had a good day for the most part of the trading day

until the last hour when suddenly all three indices dropped to near zero.

The core personal consumption expenditures price index increased by 3.1% compared to

a year ago.

This is one of the key indicators the Fed uses to gauge the inflation rate.

Combine that with the fading impact of the stimulus checks on personal income,

and I'm not surprised to see the market has lost its momentum today.

The next important economic indicator is the monthly Jobs report expected to come out next

week.

I'd expect more market volatility as monthly economic data gets released.

Let's monitor and discuss the impact next week.

By the way, stock markets are closed on Monday, May 31st in observation of Memorial Day.

We all get to do some fact-based research without the usual market chatter.

[What's Up]

>> Hoda: Shares of Systems (VEEV) were up more than 10%,

so were shares of Salesforce.com (CRM) by more than 5%.

Veeva uses Salesforce.com's tech infrastructure to deliver customer relationship management

solutions to the healthcare industry.

It's interesting to see the two stocks are moving together.

Veeva released an excellent quarterly earnings report, with a 29% year-over-year

revenue jump.

Salesforce.com also releases a strong quarterly earnings report, adjusting its full-year revenue

forecast upward.

I own both stocks and believe both are excellent stocks to hold for the long term.

If you don't own them, consider adding them to your watchlist.

If you ever find these two stocks dragged down by the market's pessimism,

consider adding a few shares to your portfolio.

Both companies are cash-rich, well-managed, and well-established companies.

That's what did I the last time these stocks dropped.

[What's Down]

>> Hoda: Shares of Costco (COST) were down more than 2% after the company released its

latest earnings report.

It's quite unusual these days to see Costco's stock price down.

It's also double surprising to see the price dropped even though the company

announced it's bringing back popular food court items and food sampling.

Diggin into the earnings report, revenue was up across the board, including an excellent

eCommerce growth rate.

Quite a few financial analysts also upgraded their price target for Costco to a higher

level.

There is no apparent reason for the price drop today.

While the stock price drop is small, it may be a good time to pick up some shares,

especially if you are building a dividend-focused portfolio.

[Give Stock Card A Try!]

>> Hoda: That's it for today.

If you haven't already done so, please give Stock Card a try,

research as many stocks and ETFs as you'd want,

and consider following a few successful investors by visiting the Stock Picks page on Stock

Card platform.

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