Tag Archives: Canopy Growth Corp

Business

Big Lots, Hibbett, Pinduoduo and others

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Check out the companies making headlines before the bell:

Big Lots (BIG) – The discount retailer’s shares tumbled 21.2% in the premarket after missing Wall Street forecasts for quarterly earnings and revenue. The company also reported a larger-than-expected slump in comparable-store sales and issued cautious full-year guidance, saying inflationary pressures reduce discretionary spending.

Hibbett (HIBB) – The sporting goods retailer’s stock slid 6.5% in premarket trading after falling short of analysts’ profit and sales estimates for the latest quarter. Hibbett said its customers had less discretionary income than in the year-earlier quarter when stimulus payments helped boost spending.

Pinduoduo (PDD) – The China-based e-commerce platform operator’s quarterly results were better than expected as China’s Covid-19 lockdowns helped boost online spending. Pinduoduo rallied 8.8% in premarket action.

Canopy Growth (CGC) – The cannabis producer reported a wider-than-expected quarterly loss, with revenue that also fell short of analyst forecasts. The company said it expects to be profitable on an adjusted basis in fiscal 2024. Canopy Growth slid 10.5% in premarket trading.

Costco (COST) – Costco beat top and bottom-line estimates for its most recent quarter, but the warehouse retailer’s profit margins shrank by nearly 1 percentage point due to increased costs for labor and freight. Costco said it was increasing prices for certain food items to offset those increases. Its stock lost 1.3% in the premarket.

Dell Technologies (DELL) – Dell surged 9.8% in premarket trading, following better-than-expected profit and revenue for its latest quarter. The computer hardware maker benefited from a jump in demand from businesses for desktop and laptop computers.

Gap (GPS) – Gap shares slumped 17.8% premarket action after the apparel retailer slashed its full-year earnings forecast and posted a wider-than-expected quarterly loss. Gap’s results were hit by higher costs for shipping and deeper levels of discounting.

Ulta Beauty (ULTA) – Ulta shares jumped 8.4% in premarket trading after the cosmetics retailer beat Street forecasts with its latest quarterly report and issued an upbeat outlook. Ulta was helped by strong demand for beauty products.

American Eagle Outfitters (AEO) – American Eagle tumbled 13.4% in premarket trading after its quarterly profit and revenue fell short of Wall Street estimates. The apparel retailer’s CEO, Jay Schottenstein, said the quarter was a challenging one with demand well below the company’s expectations.

Red Robin Gourmet Burgers (RRGB) – The restaurant chain’s shares surged 12.9% in premarket action after it reported a smaller-than-expected quarterly loss and revenue that exceeded analyst forecasts. Red Robin also updated its commodity cost guidance for the full year, due to the effects of inflation.

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Business

Cramer’s week ahead; Market needs obstacles resolved before a rally

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CNBC’s Jim Cramer warned investors on Friday that a market rally has no chance of sustaining until the causes of the turmoil are resolved.

“If we want the market to stage a meaningful comeback, we need China to reopen, Russia to withdraw from Ukraine, and the [Federal Reserve] to curb-stomp inflation with a 100-basis point rate hike,” the “Mad Money” host said. “Unfortunately, only one of those three is within America’s control.”

His comments come on the heels of a volatile week of trading spurned by missed earnings quarters from retail behemoths, mounting investor concerns about inflation and global geopolitical tensions.

The S&P 500 closed around 19% below its record while the Nasdaq Composite reached 30% off its highs, in bear market territory. The Dow Jones Industrial Average recorded its first eight-week losing streak since 1923.

In addition to giving his take on the current market, Cramer looked ahead to next week’s slate of earnings and gave his thoughts on each reporting company. All earnings and revenue estimates are courtesy of FactSet.

Monday: Zoom

  • Q1 2023 earnings release after the close; conference call at 5 p.m. ET
  • Projected EPS: 96 cents
  • Projected revenue: $1.23 billion

Zoom stock will stay down unless the company innovates or acquires another company that helps it do so, Cramer said.

Tuesday: Best Buy, AutoZone, Toll Brothers

Best Buy 

  • Q1 2023 earnings release before the bell; conference call at 8 a.m. ET
  • Projected EPS: $1.59 
  • Projected revenue: $10.45 billion

Cramer noted that while he’d normally urge investors to buy shares of Best Buy at its current price, buying anything lately has felt risky.

AutoZone

  • Q3 2022 earnings release before the bell; conference call at 10 a.m. ET
  • Projected EPS: $26.20
  • Projected revenue: $3.71 billion

Cramer said that the company’s stock is a winner.

Toll Brothers

  • Q2 2022 earnings release after the close; conference call at 8:30 a.m. ET
  • Projected EPS: $1.50
  • Projected revenue: $2.08 billion

“Most skeptics … think the earnings will be cut in half in the future, if not more,” Cramer said.

Wednesday: Nvidia

  • Q1 2023 earnings release after the close; conference call at 5 p.m. ET
    Projected EPS: $1.30
  • Projected revenue: $8.12 billion

“The action ahead of the quarter has been horrendous. … I actually think the print will be a good one, I just don’t know if anyone will care,” Cramer said.

Thursday: Macy’s, Costco

Macy’s

  • Q1 2022 earnings release before the bell; conference call at 8 a.m. ET
  • Projected EPS: 82 cents
  • Projected revenue: $5.33 billion

Macy’s has a similar product line-up to Target, which reported worse-than-expected earnings this quarter, Cramer noted.

Costco 

  • Q3 2022 earnings release at 4:15 p.m. ET; conference call at 5 p.m. ET
  • Projected EPS: $3.04
  • Projected revenue; $51.32 billion

Cramer said that while the company is performing well, its stock is down so much that a huge special dividend and buyback might be the only thing that could make it rally.

Friday: Canopy Growth

  • Q4 2022 earnings release before the bell; conference call at 10 a.m. ET
  • Projected EPS: $10.70
  • Projected revenue: $130 million

“Canopy needs national legislation promoting use of marijuana, not just flat out legalization, but subsidies” for its stock to rally to its previous highs, Cramer said.

Disclosure: Cramer’s Charitable Trust owns shares of Costco and Nvidia.

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Business

General Mills, Winnebago, GameStop and others

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Check out the companies making headlines before the bell:

General Mills (GIS) – General Mills gained 1.6% in the premarket after reporting better-than-expected quarterly earnings and raising its full-year outlook. The food maker earned an adjusted 84 cents per share, 6 cents above estimates, with revenue essentially in line with analyst forecasts. General Mills said demand for food at home continues to be elevated.

Winnebago (WGO) – The recreational vehicle maker reported adjusted quarterly earnings of $3.14 per share, beating the $2.94 consensus estimate, and revenue also topped Street forecasts. Results were helped by strong consumer demand and higher prices. However, Winnebago shares lost 2.4% in premarket action.

GameStop (GME) – GameStop soared 12.4% in premarket trading after an SEC filing showed that Chairman Ryan Cohen had bought 100,000 additional shares, raising his stake in the videogame retailer to 11.9%.

Adobe (ADBE) – Adobe beat estimates by 3 cents with adjusted quarterly earnings of $3.37 per share. The software maker’s revenue was slightly above estimates. However, Adobe cut its forecast for a key subscription revenue measure, expecting a $75 million hit for existing business in Russia and Belarus. Adobe slid 2.7% in the premarket.

Tilray (TLRY), Canopy Growth (CGC), Aurora Cannabis (ACB), Sundial Growers (SNDL) – U.S.-listed marijuana stocks jumped in the premarket following news of two takeover deals in the industry. Cresco Labs is buying Columbia Care for $2 billion in stock, while Aurora Cannabis is acquiring Thrive Cannabis parent TerraFarma for C$38 billion in cash and stock plus certain incentives. Tilray jumped 10.9% in the premarket, with Canopy Growth up 4%, Aurora Cannabis rallying 7.6% and Sundial surging 8.6%.

Okta (OKTA) – Okta said a preliminary investigation found no evidence of ongoing malicious activity, following news of a hacker breach. The digital authentication company said up to 366 customers may have been impacted by the breach, but noted hackers gained only limited access. Okta dropped 3.6% in premarket action.

Nielsen Holdings (NLSN) – Private equity firms Brookfield Asset Management and Elliott Investment Management are considering raising their offer for Nielsen, according to people familiar with the matter who spoke to Bloomberg. Nielsen had rejected a prior offer of $25.40 per share, saying it undervalued the company.

Poshmark (POSH) – Poshmark slid 9.4% in the premarket after the operator of a new and used clothing marketplace gave weaker-than-expected guidance for the current quarter. Poshmark reported better-than-expected revenue for its most recent quarter, along with a slightly smaller-than-expected loss.

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Business

Moderna, Royal Caribbean, Cerner and others

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Check out the companies making headlines before the bell:

Moderna (MRNA) – Moderna shares jumped 7.2% in the premarket after the drugmaker said a booster dose of its Covid-19 vaccine increased protection against the omicron variant 37-fold. Amid the spread of omicron, other vaccine makers are also seeing gains with Pfizer (PFE) up 1.4%, BioNTech (BNTX) adding 3.1% and Novavax (NVAX) surging 10.3%.

Cruise line operators – The surge in omicron cases is weighing on cruise stocks, with more pressure after a Royal Caribbean (RCL) ship docked in Miami with 48 cases of Covid. Royal Caribbean dropped 2.9% in premarket trading, with Carnival (CCL) down 2.9% and Norwegian Cruise Line (NCLH) falling 3.6%.

Airline stocks – Omicron concerns are also weighing on the airline stocks, with United Airlines (UAL) falling 2.9%, American Airlines (AAL) sliding 2.8%, Delta Air Lines (DAL) falling 2.8%, Southwest (LUV) down 2.3% and JetBlue (JBLU) losing 2.2%.

Biogen (BIIB) – Biogen rallied 3.6% in the premarket after announcing it would cut the price of its Alzheimer’s drug Adulhelm by 50% in order to improve access to the treatment.

Cerner (CERN) – The medical records technology provider will announce a deal today to be acquired by Oracle (ORCL) in an all-cash transaction “in the mid-$90s” per share, according to CNBC’s David Faber. Cerner shares jumped 13% Friday after the Wall Street Journal reported the two sides were close to an agreement. Cerner was up another 1.7% in premarket trading.

Canopy Growth (CGC) – The cannabis producer slid 3.4% in premarket action after Piper Sandler downgraded the stock to “underweight” from “neutral”, citing sales trends that are under pressure across Canopy’s businesses.

Sunrun (RUN) – The solar company’s stock tumbled 9.4% in the premarket following a KeyBanc downgrade to “sector weight” from “overweight.” That follows proposals in California that would reduce “net metering” benefits for solar power customers and reduce incentives to buy such systems.

AT&T (T) – Barclays upgraded AT&T to “overweight” from “neutral,” based on a better broadband outlook for telecom companies than for cable providers. AT&T was up 1.6% in the premarket.

Verso (VRS) – The Ohio-based maker of specialty, graphic and packaging paper will be acquired by Swedish paper producer BillerudKorsnäs in a deal worth $27 per share in cash. Verso surged 32.2% in premarket trading.

Axon Enterprise (AXON) – The maker of stun guns and body cameras saw its stock jump 7.3% in the premarket, following a number of stock purchases by company insiders.

Novo Nordisk (NVO) – The Denmark-based drugmaker saw its shares slide 4.2% in premarket trading after saying supply issues in the U.S. market would leave it unable to meet demand for its weight-loss drug Wegovy.

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Business

I prefer Pfizer’s stock over Novavax

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Seres Therapeutics: “You’re a younger person and you’re new and I think you can buy it. For an older person, it’s too speculative because the company is not making any money. I like your call, though.”

ViacomCBS: “It’s OK. I think that whole business is under assault. You can mention any one of these. I think it’s just OK. I mean, it’s well run, but it’s just OK.”

Novavax: “They came on like gangbusters. We all thought they were going to be equal. I like Pfizer. Pfizer’s got the pill coming up, too. That’s the inexpensive way. I feel safe with Pfizer.”

ODP Corporation: “No, I can buy everything I want on Amazon. I do not need that company. That is an Amazon roadkill.”

GrowGeneration: “Now, Grow we had on in the teens and then when it got to the $40s and $50s, we said, ‘We have had enough. We’ve made too much money, let’s not be greedy.’ Bulls make money, bears make money, hogs get slaughtered, and we said sell and we have never looked back.”

Canopy Growth: “At this point, $9, I guess I would [be a buyer]. My problem here is that this did not have a good quarter. It’s not doing that well. … I don’t like the cannabis business. I just don’t. I think it was an overhyped business, not unlike what we’re seeing right now in the gambling business, which is just brutal.”

Palantir: “Cult stock, cult stock, cult stock. The cult stocks aren’t working, OK? … We fooled around with it, we traded it, but no. It’s a cult stock right now. It’s not working.”

ContextLogic: “We actually think this company is a decent company, and they’re throwing it away. I mean look, you buy it at $3, can it go to zero? I guess so, but it’s a good [speculative play].”

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Business

Pfizer, Canada Goose, Live Nation and more

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Check out the companies making headlines before the bell:

Pfizer (PFE) – The drug maker’s shares surged 9.4% in premarket trading after a study showed that its experimental Covid-19 antiviral pill reduced the risk of hospitalization and death by nearly 90%. Pfizer said it will ask regulators to approve the pill as soon as possible.

Canada Goose (GOOS) – The outerwear maker reported an unexpected profit for its latest quarter along with better-than-expected revenue, and also raised its full-year forecast. Canada Goose also said it’s seeing an indication of a strong winter season, and shares jumped 4.6% in the premarket.

Live Nation Entertainment (LYV) – Live Nation shares rallied 5.4% in premarket action after the event promoter returned to profit amid a sales surge as live events returned. Results exceeded analyst estimates.

DraftKings (DKNG) – The sports betting company’s stock slid 3.5% in the premarket after it reported a wider-than-expected loss and revenue that fell short of Street forecasts. DraftKings did raise the midpoint of its fiscal 2021 revenue guidance and said it expected a strong 2022.

Canopy Growth (CGC) – The Canadian cannabis producer lost 3 cents per share for its latest quarter, smaller than the 20-cent loss expected by analysts. However, revenue fell short of estimates and the company flagged slower-than-expected revenue growth for the second half of fiscal 2022. The stock fell 3.5% in the premarket.

Peloton (PTON) – Peloton tumbled 31.8% in the premarket after the fitness equipment maker slashed its full-year sales forecast by $1 billion, amid slowing demand for bikes and treadmills. Peloton also reported a quarterly loss of $1.21 per share, wider than the $1.07 loss expected by analysts, and revenue fell short of estimates as well.

Expedia (EXPE) – Expedia earned an adjusted $3.53 per share for its latest quarter, well above the $1.65 consensus estimate. Revenue was also higher than expected, with the travel services company benefiting from the surge in travel demand. Expedia soared 13.2% in premarket trading.

Airbnb (ABNB) – Airbnb rallied 6.2% in the premarket as the travel-demand surge lifted sales and earnings beyond Wall Street forecasts. Airbnb earned $1.22 per share for its latest quarter, beating the $0.75 consensus estimate, with sales coming in at a record high. The company also said it expects a strong holiday season.

Uber Technologies (UBER) – Uber reported its first profitable quarter on an adjusted basis, thanks to upbeat performances by its ride-sharing and food delivery services. It did post an overall loss due to the drop in value of its stake in China ride-hailing company Didi (DIDI). Uber rose 1.2% in premarket trading.

Pinterest (PINS) – Pinterest came in 5 cents above estimates with an adjusted quarterly profit of 28 cents per share, and the image-sharing site operator’s revenue also topped analyst forecasts. It is also predicting an upbeat current quarter as the online retailer spends more on holiday season ads. Pinterest jumped 4.5% in premarket action.

Shake Shack (SHAK) – Shake Shack reported a quarterly loss of 5 cents per share, 1 cent less than Wall Street had anticipated, but the restaurant chain’s sales missed analyst forecasts. Despite the revenue miss, Shake Shack rallied 6.3% in the premarket.

Square (SQ) -Square matched estimates with quarterly earnings of 37 cents per share, while the mobile payments company’s revenue missed forecasts. Square did see a nearly 60% rise in profit from a year earlier, thanks in large part to a surge in bitcoin transactions, but the stock dropped 3.7% in premarket trading.

Lions Gate Entertainment (LGF) – The movie and tv studio is considering a sale or spin-off of its Starz premium cable channel, saying it sees the potential to unlock significant shareholder value. The stock surged 15.1% in the premarket.

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Business

Stock futures are flat ahead of key unemployment report

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U.S. stock index futures were little changed during overnight trading on Thursday, ahead of Friday’s highly anticipated jobs report.

Futures contracts tied to the Dow Jones Industrial Average dipped 24 points. S&P 500 futures and Nasdaq 100 futures were flat.

Stocks finished Thursday’s session in the green, with the S&P 500 rising 0.6% to close at a new record. The Dow gained 271.58 points, or 0.78%. The Nasdaq Composite also advanced 0.78% for its fourth straight positive session.

All eyes are on Friday’s jobs report, which will show how the labor marked fared during July. Economists expect the economy to have added 845,000 jobs last month, according to estimates from Dow Jones. However the broad range of targets — from 350,000 on the low end to 1.2 million at the top — show the uncertainty that’s currently in the market.

Brad McMillan, chief investment officer at Commonwealth Financial Network, noted that the monthly readings this year have ranged from 233,000 in January to 850,000 in June. He said a print below 300,000 could be a cause for concern, while a reading between 300,000 and 400,000 would show a “reasonably healthy” economy.

“A better result would be in line with the average for the second quarter, or around 500,000 to 600,000. This would show that the recovery continues and that while the medical and labor issues are preventing further acceleration, the economy still has enough momentum to keep moving forward at a reasonable rate,” he said.

Friday’s report comes after the weekly initial claims number reported on Thursday came in at 385,000, which was in-line with expectations.

Wall Street is closely watching Friday’s jobs report given its potential to impact the Federal Reserve’s policy going forward.

“While uncertainty over monetary policy is likely to cause further bouts of volatility, we believe the Fed’s move toward tapering is unlikely to prompt a reversal of the equity rally,” noted strategists at UBS.

“Labor market slack, well anchored inflation expectations, and risks from the delta COVID-19 variant make interest rate increases before 2023 unlikely,” the firm added.

A busy week of earnings continues on Friday with several notable reports, including from Canopy Growth, AMC Networks, Draftkings, Norwegian Cruise Line and Goodyear Tire. Additionally, Berkshire Hathaway is on deck for Saturday morning.

Through Thursday afternoon 427 S&P 500 components have posted quarterly results, with 88% topping earnings estimates, according to data from Refinitiv. When it comes to revenue, 87% have exceeded expectations.

For the week, the Dow is up 0.4%. The S&P and Nasdaq are up 0.77% and 1.5%, respectively.

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Business

Here are analysts’ top picks

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Chemdawg marijuana plants grow at a facility in Smiths Falls, Ontario, Canada October 29, 2019.

Blair Gable | Reuters

Reddit traders had a new target this week: cannabis stocks.

Before falling back on Thursday, shares of Tilray rallied over 50% on Wednesday, while Aurora Cannabis jumped around 20%. Both stocks then tumbled, but remain higher since the start of the week.

The WallStreetBets Reddit thread has shone a light on a sector that analysts have been watching for some time, describing it a “big long-term opportunity.”

In a recent note, analysts from Piper Sandler said cannabis could become a $115 billion market by 2030, if recreational use is legalized at a federal level. Even if legalization is not U.S.-wide, the industry potential is still “attractive,” reaching $50 billion by 2030, the investment bank added. Recreational cannabis use has now been legalized in 15 U.S. states.

Of analysts’ top weed stocks, one in particular was popular with three of investment firms, while Goldman Sachs noted a company that has been “underestimated” by investors.

Here are the investment firms’ top cannabis picks.

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