Mixed markets as tech giants hit news highs
Wednesday’s session saw mixed closes in Toronto, up 0.13%, and in New York with the Nasdaq up 0.51& though the S&P closed -0.7% and the Dow -0.91%. Utilities, energy and financials dragged the TSX down, but communications and tech rallied. The big news was Shopify. The Canadian tech giant announced that volume growth rose in April and posted a surprise adjusted profit. The good news propelled the stock 7.68% past $1,000/share. This has vaulted Shopify past Royal Bank to become Canada’s biggest stock with a market cap of now $122 billion vs. RY’s $120 billion.
However, there are concerns with Shopify’s metrics. For example, its EPS is -1.1x and its forward PE is 10,000. Elsewhere, gold slipped 1%, and Barrick dropped 5.42% over a dispute over a mine in Papua New Guinea.
Across the border, another tech giant made a new high on Wednesday. Amazon climbed 1.44% to close at $2,351. Another big winner was BeyondMeat whose latest earnings smashed expectations as its retail sales soared. People under lockdown have been seeking something new for their palates, and plant-based protein is replacing costlier or scarce meat products. Beyond Meat rocketed 26% in trading.