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1-800-Flowers.com - AI Stock Analysis

Analysis generated December 1, 2024

1-800-Flowers.com, Inc. (FLWS) is a major player in the floral and gifting industry, offering a wide range of products including fresh flowers, plants, gift baskets, gourmet foods, confections, candles, and plush stuffed animals. Established in 1976, the company operates through several brands and maintains a strong online presence, making it a popular choice for consumers looking to send thoughtful gifts to loved ones. With this diverse portfolio, the company aims to capture a broad market segment ranging from personal gifts to corporate solutions.

Fundamental Analysis

Revenue for the last quarter was $242M. This represents a decrease of 32.91% compared to the previous quarter, signifying a pressing concern about the company's ability to maintain its revenue streams. When compared to the same quarter last year, there was a 9.96% decrease, also raising concerns about year-over-year performance sustainability.

Net income for the last quarter was $34M. This represents a substantial 63.85% decrease from the quarter before it, indicative of significant profitability issues. Compared to the same quarter last year, net income decreased by 9.44%, which further casts doubt on the company's ability to generate consistent earnings.

EBITDA for the last quarter was $35M, a dramatic decrease of 133.36% compared to the quarter before it. When compared to the same quarter last year, there was a decrease of 25.56%, which is also troubling for investors focusing on cash flows and operating performance.

The current Price-to-Earnings (P/E) ratio is 164, which is considered very high. This implies that the stock may be overvalued, signaling a bearish outlook, and making it less attractive for value investors.

Technical Analysis

Today's stock price is $8.13, reflecting a 1.57% decrease from a month ago, which may be concerning in the short term. However, compared to a year ago, there is a 12.11% decrease, which suggests longer-term concerns about the stock's performance.

Despite these declines, the trend remains bullish. The current Simple Moving Average over 10 days (SMA10) is $8.10, up from a previous SMA10 of $8.05. This indicates a potential upward trend in price movement, albeit a cautious one.

The Relative Strength Index (RSI) is 74.6, indicating an overbought condition, which could signify a bearish outlook in the near term, as prices may be due for a correction.

Alternative Data Analysis

1-800-Flowers.com has 31 open positions, down by 60% in recent months, which indicates the company might be trying to cut costs or improve its margins. This is typically not a good sign for a company aiming to grow.

Employee sentiment at 1-800-Flowers.com is neutral, not providing much confidence in the growth prospects of the company from the inside.

Customer acquisition data shows that 1-800-Flowers.com has an estimated 2.4M visitors to their webpage, a 9% decrease in the last few months, which is a worrying trend suggesting a loss in customer interest.

The company also has an estimate of 32 users downloading their mobile apps daily, down by 14% in the last few months. This further raises concerns about slipping customer engagement and retention.

In terms of customer engagement on social media, 1-800-Flowers.com has 72,000 followers on Instagram and 45,000 followers on Twitter. Instagram followers have remained stagnant while Twitter followers decreased by 1%, indicating a slight loss in interest in the company.

Considering AltIndex's AI score of 29, a strong sell signal, the outlook appears quite bearish, as this score integrates technical, fundamental, and alternative data.

Conclusion and Recommendation

Based on the fundamental, technical, and alternative data analysis, 1-800-Flowers.com currently faces several challenges, including declining revenue, net income, and EBITDA, a high P/E ratio suggesting possible overvaluation, and declining customer acquisition and engagement metrics. The overall stock sentiment is affected by poor job market trends and a bearish AltIndex AI score. Despite a short-term bullish trend in technical indicators like SMA10, the RSI points to an overbought condition, further tempering optimism.

The overall recommendation, taking into account the data, is that investors may want to be cautious with 1-800-Flowers.com. It would be prudent to conduct further thorough research and monitor the company's performance closely before making any long-term investment decisions.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.