Food stocks grilled on weak outlooks
The TSX and American indices dipped slightly on Tuesday, except Nasdaq which fell o.59% as earning season continued. Two food stocks got grilled. Beyond Meat was burned for 22.22% after restrictions on selling 80% of it shares was lifted on Monday, even though the stock turned its first-ever profit.
There were also fears of rising competition and an announcement of lower prices on its celebrated meatless products in order to compete. Even worse, Grubhub plunged 43.30% after issuing a terrible forecast and missing earnings. Profits dropped 94%. The company blamed “promiscuous customers” who kept bouncing to other competitors for food (not any other appetite). Alphabet didn’t fare nearly as bad, down 2.12% after an earnings miss.
Similarly, Canadian tech juggernaut Shopify slid 3.17% after it reported a surprise earnings loss in the face of increased spending up to US $1 billion to expand its network, including fulfillment centers across the States. Its shares have fallen nearly 25% since its late-August high of $543.76. Tuesday wasn’t only about bad news. Despite ongoing strikes, GM was actually up 4.28% after an earnings beat. However, the strikes casts an ongoing cloud over the carmaker’s future earnings.