Market Movers: Another Blow To Growth

Market Movers: Another Blow To Growth

Happy Saturday folks!

Weren’t expecting to see us here as you tuck into your morning danish and coffee, were you? Well, here we are, and we’re going to start bringing you MyWallSt’s biggest winners and losers on a Saturday morning.

So, sit back, relax, and do what we humans love to do:

Judge others — or in this case, stocks.

Here were the biggest movers in the MyWallSt shortlist this week:

Moving Up ⬆️

Cloudflare (NET) +14.8%

IDEXX Laboratories (IDXX) +10.2%

Align Technology (ALGN) +8.5%

2U (TWOU) +8.4%

Silicon Valley Bank (SIVB) +7.6%

Moving Down ⬇️

PayPal (PYPL) -24.0%

Facebook (FB) -21.2%

Etsy (ETSY) -13.0%

StoneCo (STNE) -10.6%

Nautilus (NLS) -9.5%

 

The Winners

Cloudflare (NET) +14.8%

With no company-specific news to speak of, one would understandably assume that a growth stock like Cloudflare should be down. However, ahead of its earnings call next Thursday, it appears that a myriad of short-term call traders have swarmed the stock, with short interest jumping almost 15% this week and now accounting for 5% of the stock's total available float. Hoping for a swift pump n’ dump, these tactics rarely bode well for a stock price and could send it into a spiral of volatility. Long-term investors should ignore the inevitable upcoming noise and hold firm. 

IDEXX Laboratories (IDXX) +10.2%

Pets, death, and taxes — the three certainties in life. And animal healthcare company IDEXX Labs is capitalizing from this, posting a surprise earnings beat during the week to send its share price up. Strong growth supported by record instrument placements, resulting in 14% year-over-year expansion of IDEXX's global premium instrument installed base and helping boost revenue for Q4 to $801.1 million. Animal services are enjoying a period of sustained growth and investors in IDEXX Labs with a buy-and-hold mindset could reap these benefits in the coming years. 

Align Technology (ALGN) +8.5%

Another stock that appeared down and out for some time, Align has gritted its perfectly straightened teeth and proven to investors that it’s still got some bite to go with its bark. Posting a solid earnings beat with adjusted earnings of $2.83 per share against an expected $2.66, and revenue of $1.03 billion, things are looking up for a company that’s down 30% in the last six months. Investors should note the Invisalign-maker’s impressive international growth, reinforced by impressive shipment figures at a time where “supply chain constraints” remain the single most uttered phrase on Wall Street. 

The Losers

PayPal (PYPL) -24.0%

It’s never a good sign when the headlines are talking about your “worst-ever trading day”, but PayPal investors felt the pinch this week when its stock plummeted 24% on Wednesday. EPS of $1.11 and revenue of $6.92 billion were fine, but what really soured investors was Q1 guidance that fell well short of what analysts hoped for. But PayPal is a tech heavyweight, still fighting off competition from the hordes of pretenders coming for its payment crown. With recent partnerships such as that with Amazon in the U.S. and continued innovation, one bad quarter will do little to bring down this castle. 

Facebook (FB) -21.2%

If you found yourself around 1 Hacker Way last night, you may have just heard the faint, otherworldly sounds of Mark Zuckerberg cursing into his VR headset. At least, that’s how I’d react if my company suffered one of its worst-ever days on the market and lost $280 billion in value. That’s what happens when you build a reputation as a harbinger of all that’s wrong in the world, but fail to keep bringing in the big bucks. Missing on EPS, predicting $10 billion in losses due to Apple’s iOS 14.5 privacy changes, and a first-ever user base drop all make for pretty grim Meta reading. Sure, we could mark this down to being an unfortunate combination of inflation, supply chain issues, and Apple, all meshed together to form the perfect social kryptonite. However, what it really highlights is just how important the next phase of Meta’s growth is going to be. The massive potential of the metaverse and how Meta manages to tap into that could be make or break for the business. Now, allow me to go back and count how many times I mentioned meta…

JamieJamie

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