We have made our way through the “bulk” of earnings season and our two biggest take-aways so far are:
1. Investors don’t “Like” social media stocks &
2. All eyes are on guidance…
To address the first point, social media stocks have been annihilated this season after Twitter ($TWTR), Yelp ($YELP) and LinkedIn ($LNKD) all gapped lost more than a quarter of their value after reporting their Q1 results. These stocks were hit hard after all three companies, in this once-hot space, reported lackluster numbers and lowered guidance for Q2 and the rest of 2015. That raises the question: If these companies aren’t bullish about their future – why should investors be?
Which brings us to our second point – all eyes are on guidance. As more and more companies released their numbers – it became clear to us that, this season, the biggest causalities came from companies who lowered their guidance. Keurig Green Mountain ($GMCR) was just the latest shoe to drop after the company lowered guidance.
History shows us that some of the market’s biggest winners can be found from stocks that gap up after reporting earnings. Conversely, some of the biggest losers occur from stocks that gap down after reporting numbers. That’s why we spend a lot of time analyzing what happens during earnings season.
Here is a quick glimpse at some of the winners and losers (so far) during earnings season for your review:
Winners: Amazon.com ($AMZN), Netflix ($NFLX), Hasbro ($HAS), Domino’s Pizza ($DPZ), Skechers ($SKX), Dunkin (Donuts) Brands Group ($DNKN), Microsoft Corp ($MSFT), O’Reilly Automotive ($ORLY), and YUM Brands ($YUM),
Skywest ($SKYW), Web.com ($WWWW), Equinix ($EQIX), Styngenta ($SYT), Nutri System ($NTRI), Brink’s Co ($BCO), Teradyne Inc ($TER), Skyworks Solutions ($SWKS), GoPro ($GPRO), Estee Lauder ($EL), Abiomed Inc ($ABMD), Golar LNG ($GLNR), Energizer Holdings ($ENR), RetailMeNot, Inc ($SALE), Herbalife ($HLF), BlueBird Bio ($BLUE), HubSpot Inc ($HUBS), Alibaba Group ($BABA), Qorvo Inc ($QRVO), Visteon Copr ($VC), Norwegian Cruise Line Holdings ($NCLH)
Losers: Whole Foods Market ($WFM), Keurig Green Mountain ($GMCR), Kate Spade ($KATE), Lannett Co ($LCI), Nu Skin ($NUS), Terra Nitrogen ($TNH), Tumi Holdings ($TUMI), Noodles & Company ($NDLS), Qualys ($QLYS), Groupon Inc ($GRPN), News Corporation ($NWSA), Vitamin Shoppe Inc, ($VSI), Fossil Inc ($FOSL), Frontier Communication ($FTR), TriNet Group ($TNET), Zulily Inc ($ZU), Weight Watchers ($WTW), Walter Energy Inc. ($WLT), Skullcandy ($SKUL) Twitter ($TWTR), Yelp ($YELP), LinkedIn ($LNKD), Constant Contact (CTCT), Accuray ($ARAY), Cooper Tire & Rubber ($CTB), Abaxis ($ABAX), Texas Instruments ($TXN), Buffalo Wild Wings ($BWLD), Baidu Inc. ($BIDU), Stratasys ($SSYS), Harman ($HAR), Nokia ($NOK), Travelers ($TRV), 3M ($MMM), Chipotle ($CMG), Pulte Group ($PHM), Biogen Inc ($BIIB), Generac Holdings ($GNRC), First Solar ($FSLR), and American Express ($AXP), just to name a few.
If history is any guide, we should expect winners to rally from here and the losers to continue to fall (barring some unforeseen event in either direction).
