“Meta is down 20% in premarket buying and selling after a decline in every day energetic customers, a income warning and worries about its metaverse enterprise. The selloff is erasing about $180M in market cap, practically the entire market cap of Netflix.”
That dangerous aura began to unfold to the remainder of the market. Maybe that aura even unfold to the inventory market within the metaverse. 😉
The tech-heavy Nasdaq Index (QQQ) was down 3% on Thursday January 3, 2022. Beneath, you will note the one-month chart for S&P 500 (IVV) making an attempt to struggle again this earnings season.
Canadian earnings assist with the February blahs
Due to Dan Kent, accomplice at Stocktrades.ca for this overview of some key Canadian shares. (All earnings are reported Canadian {dollars}.)
BCE (BCE)
Bell reported sturdy earnings. Income of $6.2 billion was proper in keeping with estimates, and earnings per share of $0.76 got here in $0.03 greater than anticipated. It’s additionally not a shock that the corporate got here via with a 5.1% dividend elevate for shareholders. The corporate achieved the very best residential internet subscriber efficiency in additional than a decade. And its growth efforts are going properly, with the power to now provide cellular 5G to over 70% of Canadians. Telecom earnings are removed from thrilling. Contemplating the financial moat and market share the Huge Three (BCE, Rogers and Telus) have, it’s very uncommon to get one thing out of left discipline. It’s merely regular because it goes for BCE.
Aritzia (ATZ)
The corporate posted earnings per share of $0.61. That was properly above analyst estimates of $0.404. The corporate additionally posted income of $453.32 million, exceeding expectations by 23%. Aritzia is the fastest-growing retailer within the nation, seemingly discovering the candy spot relating to pricing and high quality. On a trailing 12-month foundation, the corporate posted top-line development of 52.8% and elevated internet revenue seven-fold. It is going to be very fascinating to see if it might hold this trajectory, primarily fueled by an growth into the USA, a market that provides unimaginable development potential.
Lightspeed Commerce (LSPD)
It reported earnings that topped estimates by way of income, internet revenue and earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA). Lightspeed Commerce has been closely scrutinized by analysts and short-sellers. It not solely grew income by 155% 12 months over 12 months, (70%~ of it being natural development) but it surely additionally bumped its fiscal 2022 steering. Losses as a share of income declined, and the corporate introduced a brand new chief government officer. Dax Da Silva steps down as CEO, taking a decrease position however he’ll nonetheless be very concerned with the corporate. Profitability has been a difficulty, and it seems like we’ll be getting some steering on the trail to it subsequent quarter. Acquisitions will sluggish in 2022, and I shall be to see how this one performs within the midst of a large tech selloff.
CN Rail (CN)
CN Rail posted earnings of $1.71 per share and income of $3.75 billion. Each topped estimates of $1.53 and $3.66 billion, respectively. Extra importantly, the corporate elevated its working ratio to 57.9%, a 3.5% enhance from the earlier quarter. And it delivered file free money stream of $3.29 billion. That is seemingly why the corporate was capable of come via with a 19% enhance to the dividend. The corporate additionally appointed a brand new CEO and settled its long-standing dispute with TCI Fund Administration. The corporate is focusing on $four billion in free money stream over the subsequent 12 months.