A humorous look at the companies that caught our eye, for better or worse, this week
Nasdaq Composite Index (STAR)
Things people are relieved about: 1) Not having to listen to Donald Trump whine and complain for another four years; 2) Not having to watch the Leafs play this fall; 3) Not having to worry that the hugely profitable tech companies will be regulated or broken up. With Joe Biden likely winning the White House but control of the U.S. Senate still up in the air, investors sent companies such as Facebook Inc., Amazon.com Inc. and Alphabet Inc. higher on expectations that Congress won’t do anything to stop the gravy train that is the U.S. tech sector.
Money-saving idea: Have a friend seal you inside a cardboard box and ship you to a tropical destination – at a fraction of the cost of an airline ticket. Money-making idea: Invest in cargo airline Cargojet. Driven by the boom in e-commerce as people work and shop from home during the pandemic, Cargojet posted third-quarter results above expectations as revenue rose 38 per cent and adjusted earnings before interest, taxes, depreciation and amortization doubled from a year earlier. With Cargojet’s stock soaring to a record, investors can afford to fly first class.
Constellation Software (STAR)
How do computers do it? Is there a little man – or perhaps a very smart child – inside the box performing all those complex calculations? No, it’s the software, silly. As investors in Constellation Software can tell you, demand for software products is booming: The company – which serves corporate and government customers operating in more than 100 countries – reported that revenues grew 15 per cent and earnings jumped 50 per cent in the third quarter, driven by acquisitions and lower costs. Those are some stellar results.
Match Group (STAR)
Hooking up with a stranger during a pandemic may not be everyone’s idea of a good time, but plenty of people are cool with it: Shares of Match Group surged after the company – which owns dating sites including Tinder, Match, OkCupid and PlentyofFish – posted year-over-year revenue growth of 18 per cent to US$640-million in the third quarter as the average number of subscribers rose 12 per cent to 10.8 million. With Match Group saying its sites “performed extremely well despite the COVID challenges,” investors are falling in love with the stock.
Now that’s what you call a gotchie pull. Shareholders of HanesBrands – which makes basics including underwear, socks, T-shirts, bras and sweatshirts – reported third-quarter revenue and earnings that exceeded Wall Street expectations, helped by a strong showing from its Champion sportswear brand. Unfortunately, the company’s outlook for the fourth quarter, dimmed by “uncertainty due to the COVID-19 pandemic,” came up short of analysts' estimates, sending the stock to a steep loss. Ouch.
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