Currently, a lot is happening on stock markets. With European stocks rallying again, Asian stocks under pressure from higher COVID-19 cases and US stocks closing lower as earnings season is ramping up. And then we had of course the Coinbase IPO that created some waves (and still is, as today it was announced the stock would stop trading on German exchanges).
As every week, we’ve let our community decide, which stocks they see as relevant or not. Some will be familiar to you, while others may be a hidden gem.
Enjoy the read!
P.S. and as always please remember that investing comes with risk, even more in times like now where we see increased volatility and overflow of liquidity in markets.
Over 2.2 million less new subscribers as expected in last quarter.
The production company reported on Tuesday its results for Q1 2021, and they were far below expectations. After a record growth during the (first) pandemic year, investors already expected a lower subscriber growth but were left disappointed. Shares fell 10% in late trading following the announcement.
But not all is bad news, as their revenues were slightly above expectations, meaning that they had seemingly way less churn as expected! Now let’s hope COVID is soon over, so that they can produce more movies & documentaries, as a big part of their production is being delayed at the moment. 🎥
Not only its bottle is green.
After cutting its carbon emissions by 51% between 2008 and 2020, while at the same time producing 71% more volume, Heineken announced it would go even further in their quest to not only make their bottle green.
The Dutch company aims now to be carbon neutral across its value chain by 2040!
Looking at their numbers, which came out this morning, it seems that sales in Africa and Asia compensated for lower sales in the locked-up Europe (down 9.7%). Globally, beer volumes stayed flat, but better than the expected 5.1% decline. After announcing a 8,000 job cut in February, a 12.1% growth by its flagship brand, Heineken, provided the group with a well needed boost.
Heineken’s shares rose more than 4% in early trading. 🍻
Happy clients mean unhappy investors?
The german software-giant will present tomorrow its quarterly results for Q1 2021. Analysts do expect a small decrease in overall revenues from €6.32bn vs. €6.52 at the same period last year.
About half a year ago, SAP’s CEO, Klein had decided to scrap the ambitious medium-term goals of his predecessor Bill McDermott because of the pandemic and above all because of higher investments in the cloud division. The 40-year-old wants to improve the company’s standing during the crisis and has not shied away from investing money to better integrate customers and simplify the transition to the cloud versions of the software.
While clients can be happy with that focus, stock markets are a bit less so. 😣
This step scared off investors who have been pushing for higher margins from the world market leader for business management software for years.
But the company is confident that the new contracts for the cloud business from Q1 will accelerate growth in the future.
The creator of worldwide known drugs such as Lipitor and Viagra, had in recent years seen decreasing revenues and flattening of its profitability. Then COVID-19 came and their top-line has been growing at a fast pace ever since. makes once more our community picks of the week. According to the company’s Q4 release, Pfizer expects vaccine revenue of $15 billion this year. That revenue accounts for about 80% of the forecasted top-line increase. But it’s not revenue that is going to last forever likely. So the company will have to keep reinvesting itself. 💊
In the meantime, the stock remains a favorite for some investors due to its lower valuation (12x forward earnings, which is about cheaper than 95% of the S&P other components) and a dividend yield of over 4% helps it being considered as a value play.
A new comparable for Facebook & the likes on stock markets?
We were all passengers during the rise of social networks, growing from a tiny part of the economy to this giga industry estimated at over $60 billion, in the US alone.
Over the last five years, stocks of US social media platforms have grown over 20%.
But investors have been punishing bad governance (as seen in Facebook) but as well less sustainable business models (Twitter or Snap).
Pinterest combines search functions and a more visual approach, that is seen by some investors as an easier way to make advertisement easier but more importantly less intrusive for users. 📍