Sectors: Technology
A very volatile week for a traditionally very volatile stock. The advertising technology company with a market capitalisation of $US33bn last week reported a 25% year-over-year revenue increase to $493m in Q3, putting them on a YTD run rate of $US1.34bn, up 23% YoY. Despite these very strong earnings numbers, which were ahead of expectations, shares fell ~16% after the result
The designer and manufacturer of solar modules that use thin film technology reported Q3 results last week that were mixed; however, it seems positioning ahead of these numbers was also on the more cautious side i.e. a fair amount of negativity already priced in
2023 has promised so much on several occasions but alas, with just 6 weeks left, it’s shaping up to be a disappointing year, especially when we consider that many term deposits are paying over 5%. Under the hood, 6 out of the 11 sectors are lower at this stage, but the loser’s enclosure includes the influential healthcare, financials and resources sectors, e.g. CSL Ltd (CSL) -12.4%, Westpac (WBC) -10.7%, and South32 (S32) -21.3%.
XRO -0.54% We’ve fielded a few questions on our holding in Xero in the past 24 hours, and whether or not we should hold or fold, so here’s our latest view as we wrap up the week. The simple answer at this stage is yes we are holding but we are not considering averaging which could be interpreted negatively.
Dear James and Shawn
Hello do we hang on to our XRO holdings after todays results thank you.
Demand for TNE’s enterprise software solutions has remained a beneficiary of the growing global digital transition as companies/Governments upgrade legacy IT footprints – the company reports on the 21st of this month.
REA were out with their 1Q sales update this morning that on an initial look through appeared solid as their Australian Residential business enjoyed a strong quarter with revenue up 12%, broadly inline with the increase in national house prices.
ALU surged in August after reporting earnings ahead of expectations for FY23 in both composition and numerical terms. We rate their management team highly, making this our favourite local tech stock with a scalable business model. The company doesn’t report until February, taking that risk off the table for the foreseeable future.
WTC was the high-flying sector darling in August, but a disappointing result has seen the stock fall -35%, illustrating another example of the current market’s brutal reaction to misses on any level.
