STARS AND DOGS
The Globe's stars and dogs for the week
A humorous look at the companies that caught our eye, for better or worse, this week
Shopify's high-flying stock just got chop-ified. Short-seller Andrew Left of Citron Research accused the company – which provides software platforms for online merchants – of running a "get rich quick" scheme fuelled by illegal promises of vast wealth and a shady network of online blogger "affiliates" who promote the company without disclosing that they are getting paid to do so. Shopify defended its business model, but investors are starting to have their doubts.
SHOP (TSX), $122.92, down $22.20 or 15.3% over week
How to tell you're watching too much Netflix: 1) You haven't showered in more than a week and your kids refuse to be in the same room as you; 2) Your spouse has moved out; 3) When you finally go outside, the neighbours call the police to report a "suspicious person with a beard." Netflix hiked prices for some of its memberships this week, but judging by the stock's record-high surge, investors don't expect it to have an impact on viewership.
NFLX (Nasdaq), $198.02 (U.S.), up $16.67 or 9.2% over week
CONSTELLATION BRANDS (STAR)
Ninety-nine bottles of beer on the wall … actually, Constellation sold a lot more beer than that during its fiscal second quarter, when it shipped the equivalent of 80.3 million 24-packs, an increase of 11.7 per cent from a year earlier. With brands such as Modelo and Funky Buddha generating strong growth for the company, which also sells wines and spirits, Constellation raised its full-year profit outlook, sending the stock higher. That calls for another beer.
$210.11 (U.S.), up $10.66 or 5.3% over week
OFFICE DEPOT (DOG)
The world is going paperless, which is a problem if a big part of your business is selling paper. Shares of Office Depot were fed through the shredder after the company, citing the impact of hurricanes and a slow back-to-school season, cut its estimate for 2017 operating income by as much as 20 per cent. Office Depot is hoping to transform itself into a diversified business-services firm with the $1-billion (U.S.) purchase of IT company CompuCom, but investors are skeptical it will work.
ODP (Nasdaq), $3.94 (U.S.), down 60¢ or 13.2% over week
AMERICAN OUTDOOR BRANDS (STAR)
American Outdoor Brands sounds so wholesome, doesn't it? It probably makes camping equipment or hiking boots, right? Nope. Guns. Shares of the company, which changed its name from Smith & Wesson late last year, rose along with other firearms stocks after a gunman killed at least 58 people in Las Vegas. Gun sales usually rise after mass shootings as weapons enthusiasts worry that tougher gun laws could be coming. But don't hold your breath.
AOBC (Nasdaq), $15.70 (U.S.), up 45¢ or 3% over week