Spin Master (STAR)
Hey kids, Santa here, with some bad news. Because of supply-chain disruptions and labour shortages here at the North Pole, I’ve made the very difficult decision to cancel Christmas this year. No, wait, don’t cry. It’s a joke! Christmas isn’t cancelled at all! In fact, if Spin Master’s third-quarter results are any indication, it’s going to be one of the best Christmases ever. Thanks to revenue tied to its first feature film, PAW Patrol: The Movie, popular digital games such as Toca Life World and strong demand for preschool products, the toy maker posted the highest quarterly sales in its history. Unfortunately, kids, I have some sad news to share about Rudolph … kidding!
Studies show that COVID-19 vaccines lose their potency after a while. So do COVID-19 vaccine stocks, apparently. After gaining more than 400 per cent in the months following positive trial results for its mRNA vaccine, shares of Moderna have been in a free fall. This week, the stock extended its losses after the company slashed the 2021 sales projection for its COVID-19 vaccine by as much as US$5-billion, citing challenges in bottling and distributing the product fast enough to meet unprecedented global demand. With the shares down by more than half from their peak, investors are suffering severe localized bruising and soreness in their portfolios.
Shares of Cargojet soared when people started ordering everything online during the pandemic. But this week, the stock came in for a bumpy landing. It’s not that business is slowing; third-quarter revenue surged nearly 17 per cent as supply-chain disruptions and trucking shortages boosted demand. But investors are apparently nervous that Cargojet is adding aircraft capacity when cargo “belly space” in passenger planes is starting to rebound, creating more competition. RBC analyst Walter Spracklin said the fears are overblown and expects demand for dedicated carriers will remain “robust.” But investors aren’t unbuckling their safety belts just yet.
Activision Blizzard (DOG)
With its recent history of sexual harassment and discrimination allegations, management upheaval and an employee walkout, Activision Blizzard isn’t likely to make any “Top 10 Places to Work” lists any time soon. After the stock’s latest tumble, the video game developer won’t make any “Top 10 Places to Invest” lists, either. The shares suffered their biggest one-day loss in 13 years after the company delayed the release of two key titles, Overwatch 2 and Diablo IV, as it deals with internal turmoil including the unexpected departure this week of Jen Oneal as co-leader of its Blizzard division. With analysts slashing their price targets, investors are pulling the plug on this game.
AcuityAds Holdings (DOG)
AcuityAds Holdings bills itself as “a one-stop solution for omnichannel digital advertising with best-of-category return on advertising spend.” Wow, someone likes adjectives. Investors could probably come up with a few less charitable ones to describe the returns on the stock, however. Since peaking at more than $33 in February after a very modest 12-month gain of 1,700 per cent – entirely justified by the fundamentals, no doubt – the shares have gone virtually straight down. The stock’s terrifying descent continued this week after AcuityAds reported third-quarter revenue below analysts’ expectations. What goes up…
A humorous look at the companies that caught our eye, for better or worse, this week
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