Important note
This AI stock analysis for Light & Wonder is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!
Light & Wonder - AI Stock Analysis
Analysis generated December 16, 2024
Light Wonder is a company involved in innovative products and services, likely within the technology or entertainment sectors. The company has been demonstrating a growth trajectory on a yearly basis, although there are signs of concern in the short term. Employee sentiment towards the company remains high, however, the necessity to improve margins or cut costs is evident through recent decreases in job postings.
Fundamental Analysis
Revenue: For the last quarter, Light Wonder reported a revenue of $871 million, reflecting a minor decrease of 0.23% compared to the previous quarter. However, on a year-over-year basis, this represents a 9.56% increase, indicating solid annual growth. Despite the slight quarterly decline, the annual numbers give a positive sense of the company's capacity to grow over time.
Net Income: The net income for the last quarter was $64 million, declining by 21.95% from the previous quarter and by 14.67% compared to the same quarter the previous year. While this decrease is concerning, it highlights potential inefficiencies or unexpected costs that the company needs to address.
EBITDA: The company recorded an EBITDA of $197 million for the last quarter, a decrease of 7.51% from the previous quarter and 5.29% year-over-year. This drop suggests that operational efficiencies may be declining, which calls for an evaluation of the company’s expense management.
P/E Ratio: The current price-to-earnings ratio stands at 28.53. This relatively high P/E ratio might suggest that the stock is overvalued, making it more attractive to sell rather than buy at the current moment.
Technical Analysis
Current Stock Price: Light Wonder's current stock price is $92.80. Over the past month, it has experienced a slight decrease of 0.47%. However, on a yearly basis, the stock price has increased by 10.67%, indicating a positive longer-term trend.
Moving Averages: The SMA10 is at 93.69, lower than the previous SMA10 of 94.17. This decrease suggests a potential downward trend in price movement, which could be an early signal of bearish sentiment in the market.
RSI: With a current RSI of 39.6, the condition is neutral, as it is not approaching the typical overbought or oversold thresholds. It suggests that the stock price is neither experiencing significant accumulation nor substantial distribution.
Alternative Data Analysis
Job Postings and Employee Sentiment: Currently, Light Wonder has 110 open positions, a 39% decrease in recent months. This reduction suggests possible cost-cutting measures, which could be worrying for a growth-oriented company. Nevertheless, a high 81% of employees maintain a positive business outlook, which is a constructive indicator.
Customer Acquisition and Engagement: Light Wonder's website has around 220,000 visitors, a stable figure over the past few months. On social media, their Instagram followers increased by 23% to 2,500, suggesting rising interest, while Twitter followers slightly decreased by 3%. This mixed engagement data gives an overall balanced view of customer interest and involvement.
AltIndex AI Score: According to AltIndex, an AI-driven predictive model, Light Wonder has a score of 69, which translates into a buy signal. This score integrates fundamental, technical, and alternative data, providing a comprehensive stock evaluation.
Conclusion and Recommendation
Light Wonder presents a complex investment case. The company is growing on an annual basis but showing certain short-term weaknesses in net income and EBITDA. The stock price indicates stability with a slight long-term upward trend, while the technical signals point towards a softer short-term bearish trend. Despite measures to possibly cut costs as seen in job postings, employee morale remains notably high. Alternative data provides mixed signals with positive indications on customer interest from social media.
Considering all aspects, including the fundamental metrics, technical indicators, and alternative data signals, the investment recommendation is mildly positive. The company shows potential for continued long-term growth, although current fundamentals and technicals exhibit short-term challenges. Proceed with cautious optimism, remaining vigilant on quarterly performance updates and market sentiment shifts.
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.
