Super Micro Computer (+26%): The US server and storage specialist is on a roll. Like the other stocks associated with AI, which promises to revolutionize the economy, it is currently benefiting from a powerful buyer flow. The Group is also unveiling a new liquid cooling technology for data centers, as well as a cloud partnership with Applied Digital Corporation. Finally, Loop Capital recommends the stock as Buy, with its price target raised to USD 200.
Abercrombie & Fitch (+25%): Despite economic uncertainties, the American fashion brand posted solid quarterly results. Over the past period, the group reported a surprise profit, as well as sales (+3%) and operating margin ahead of expectations. Abercrombie also reported significantly reduced inventory levels compared to 2022. Management has therefore raised its annual sales growth and operating margin forecasts.
Cricut (+25%): While the American group, which provides technologies for creative DIY projects, reported lower-than-expected quarterly results, with a 26% drop in sales, it announced the payment of a special dividend to investors of record on July 3, 2023. With user volumes up 19% in the quarter, management is confident in its ability to generate profitability, finance growth and reduce inventory levels. This should boost the share price.
Nvidia (+21%): Nvidia exploded this week after publishing exceptional quarterly results, better than expected, and flamboyant forecasts for the coming quarter, again ahead of expectations. The American chipmaker is unsurprisingly buoyed by growing demand from businesses for graphics processors dedicated to artificial intelligence projects, which require significant computing power.
Palo Alto (+10%): The cybersecurity specialist also exceeded market expectations for its fiscal third quarter, thanks to higher IT security spending by major corporations, and strong subscription and support sales. While the group has been profitable since the start of the year, it has raised its annual targets: it is now targeting an increase in revenues of between 23 and 24%, compared with 22% to 23% previously.
Losers:
Petco (-17%): The retailer specialized in pet products disappointed investors. It reported quarterly sales up 5.4%, but lower margins and a loss of 1 cent per share. Pet owners are concentrating their spending on essential products to the detriment of discretionary purchases. With rising interest rates, the market is also concerned about the group’s heavy debt burden. But while the company has reaffirmed its forecasts for the year, investor reaction seems a little excessive.
SnowFlake (-16%): Snowflake did not disappoint. The software maker reported better-than-expected quarterly results, with revenues up 48%, but once again cut its full-year forecasts, notably for product revenue growth to 34%, compared with 44% to 45% previously. The company , which markets analytics and data management tools for cloud platforms, is suffering from the timid outlook of its partners against the backdrop of a slowing US economy.
Dollar Tree (-15%): Under the impact of inflationary pressures, demand is also slowing down at Dollar Tree, which has consequently revised its annual profit and sales forecasts downwards. The discount retailer posted mixed quarterly results: revenues were up 6.1% on a reported basis and 4.8% on a comparable basis, better than expected, but profits were down. The company is counting on lower freight rates this year, and on the measures deployed to boost productivity, to brighten its outlook.
Pets at home (-9%): Despite a record year, with sales up 7.9% on a like-for-like basis, the British pet products retailer is on a downward trend. The company reported an 18% fall in annual profits, weighed down by a reduction in discretionary sales. Investors believe that the group is mature in its market, and that it will need growth drivers. With this in mind, Pets at home has announced the opening of 40 new sales outlets.
