| Notably, beauty and cosmetic companies could soon get delt a major blow – notably e.l.f Beauty's (NYSE: ELF) and Ulta Cosmetics (Nasdad: ULTA). ELF was once a $10 stock best known for selling $1 makeup brushes. But then, an explosion of "skin-fluencers" flooded TikTok with product reviews, beauty tutorials, and before/after videos – which reviewed the effectiveness of skincare products. And as a result, shares of ELF exploded. ELF shares now trade around $160 – and have gained 350% since 2022. A big reason for the rally has been TikTok. It has allowed ELF to increase its revenue and market share by closing brick-and-mortar locations in 2019 and shifting to a more digital focus using TikTok as a marketing tool. Is that gravy-train now about to end? It could be a very realistic possibility. YOUR ACTION PLAN Now that a TikTok ban is looming, ELF could lose this lucrative and effective marketing model. The same goes for ULTA, which is already started to trend lower – moving from $560 per share in March down to $400 here in late April. Could ELF be next to follow the downside path of ULTA? If so, then mid-dated put options could be a smart idea. To see exactly how I'm playing developments like these, I invite you to check out The War Room. Last week I closed a 107.55% winner on SNAP in less than 1 trading day, and my colleague Karim closed a 128.31% winner on RILY in 143 trading days. So if you're ready, click here to join a community of like-minded traders today. |
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