This Stock Should Not Have Surprised You

Jun 12, 2021

Crocs (CROX) Fans are Weird, But CROX Shares Don’t Care

This is coming from a self-professed, multi-year fan of both Crocs shoes and CROX the stock.

An “ironically” ugly design, combined with undeniable comfort and a high potential for customization has made Crocs (CROX) a favorite of the young and old, catapulting the brand to “meme status.”

Love the shoes or hate them, the meteoric gains of CROX are undeniable.

And LikeFolio Opportunity Alerts members were the biggest winners.

Here’s How We Got Ahead of Major $CROX Rallies

LikeFolio’s real-time analysis of consumer social media activity allowed us to spot this shift in consumer perception well ahead of the market, setting us up for several entries below $20.

The chart above is beautiful.

How were we so confident in Crocs’ continued success?

LikeFolio data showed us that two critical metrics were extremely high: Consumer Demand (what we call “Purchase Intent”), and Consumer Happiness.

And just as consumer demand was spiking for Crocs shoes, shares were selling off with the rest of the market, creating one of the most compelling opportunity alerts we have ever sent.

The market had no idea Crocs were actually gaining steam into important summer months.

But LikeFolio data was clear — consumers simply couldn’t get enough of these affordable, fun, and comfy shoes.

Take a look at what LikeFolio Purchase Intent — consumer mentions of actually buying a pair of Crocs — looked like on our last Bullish Opportunity Alert:

Since issuing this March Bullish Alert, CROX shares have gained by more than 735%!

The green line above shows Consumer Demand (purchase intent) over time, and the grey line shows the stock price.

If you look on the far right of the chart, you’ll see just how big of an opportunity our signals were highlighting.

Wall Street had thrown CROX stock out with the bathwater — right as consumers were going crazy for the company’s products.

It was an incredible opportunity… and one that most of the market missed.

Are We Still Bullish on Crocs?

Crocs are as popular as ever, and larger fashion houses are attempting to capitalize on the brands’ success: Balenciaga just launched a second collaboration with CROX.

Just look at these (ahem…) beauties:

The shocking part?

Mentions show that items from such high-profile partnerships aren’t even what Crocs’ core fans covet the most…

Several days before the Balenciaga announcement, Crocs fashioned in the likeness of Pixar’s “Lightning McQueen” sold out in minutes following a limited online release.

Those shoes are fetching $250 and higher on secondary markets.

While the “Balenciaga Stiletto Crocs” headline certainly drew the attention of the wider internet, many Crocs fans are more interested in shoes that look like a fictional talking car.

Proving there truly is a pair of Crocs for everyone.

Playing Crocs from Here…

Crocs’ underlying Consumer Demand has steadily risen on a YoY basis, mirroring the company’s consistently impressive revenue growth.

And Purchase Intent Mentions are STILL showing strength as we approach the peak summer season.

Shares of CROX have experienced monumental gains in the past year: +70% YTD.

Stay tuned to see if/when Crocs demand shifts.

We’ll be watching in real time and keeping our clients up to speed along the way when opportunities present.

Andy Swan,
Founder, LikeFolio