A humorous look at the companies that caught our eye, for better or worse, this week
Pier 1 Imports (DOG)
In the old days, if you wanted a new sofa, you went to a store where they had furniture you could actually try before buying. But who has the time? With e-commerce sites such as Wayfair carving out a growing slice of the market by offering discounted prices and free delivery for customers who can’t be bothered to shop in person, traditional furniture retailers such as Pier 1 are getting the stuffing knocked out of them. The shares plummeted after the company announced a third-quarter loss and said it will close up to 450 locations, or about half of its stores in North America. Investors are finding this sofa very uncomfortable indeed.
PIR - NYSE
For a while there, it looked like Tesla’s stock – and its unpredictable CEO – were both heading for a crash. But Elon Musk has largely curbed his erratic behaviour and, co-incidentally or not, Tesla’s shares are back in the fast lane. After surging 74 per cent in the fourth quarter, the stock has hit fresh record highs in 2020, driven by a 50-per-cent jump in deliveries last year and optimism that a new factory in Shanghai will give Tesla’s Model 3 vehicle a big boost in China. Now that Tesla has the largest market cap of any U.S. car company in history, what could possibly go wrong?
TSLA - Nasdaq
A fashion retailer whose stock is soaring? It’s true. Shares of Aritzia rocketed higher after the Vancouver-based women’s clothing merchant said same-store sales rose 5.1 per cent for the 13 weeks ended Dec. 1 – the 21st consecutive quarter of growth for that key measure. With Aritzia opening new boutiques in Canada and the United States, testing a more inclusive range of sizes and seeing strong growth in e-commerce, investors are betting that the shares – which are up nearly 40 per cent in the past year – won’t be going out of style any time soon.
ATZ - TSX
Beyond Meat (STAR)
Business quiz! Having tumbled nearly 70 per cent from their record high in July, shares of Beyond Meat rallied this week after: a) the company announced a ”new plant-based alternative fuel that can power automobiles – and makes a delicious gravy, too!”; b) Beyond Meat unveiled the world’s first genetically engineered cow made entirely from pea protein; c) McDonald’s Canada said it will expand a trial of its “P.L.T.” (plant, lettuce and tomato) burger, which is made with a Beyond Meat patty, to 52 locations in Ontario from 28. Answer: c.
BYND - Nasdaq
Bed Bath & Beyond (DOG)
Looks like a lot of investors are pulling the plug on Bed Bath & Beyond. Shares of the home products retailer were circling the drain after the company swung to a net loss of US$38.6-million or 31 US cents a share for its fiscal third quarter as same-store sales dropped 8.3 per cent. With Bed Bath & Beyond also withdrawing its full-year forecast as new CEO Mark Tritton prepares to unveil his strategic plan in the next few months, the stock left an unsightly ring around investors’ portfolios.
BBBY - Nasdaq