Software AG
(+55%): The German software developer received a takeover bid this week from Silver Lake Management. The American private equity firm, which acquired 9% of the company’s capital in 2022, is offering shareholders EUR 30 per share, valuing the company at EUR 2.2 billion. The offer was welcomed by shareholders. In the meantime, Elliott Investment Management and other investors have increased their positions in the group.Hasbro (+14%): The toy and game group reported better-than-expected quarterly results. Sales (-14%) and operating profit (-85%) were down, but surprised the consensus. Sales were supported by the strength of the role-playing games, digital games and the “Magic: The Gathering” card franchise (+16%). The manufacturer, which is working to reduce costs and inventory levels, confirmed its annual sales and profit forecasts.
Chipotle (+13%): The fast food chain specializing in Tex-Mex cuisine also beat market estimates. It benefited from inflation and the attraction of low-income customers to report a 17% increase in quarterly sales and 84% growth in net profit. The company also opened 41 new shops this year. This is a great comeback for the group, which had been the victim of a wave of foodborne illness outbreaks in 2016 and 2017.
Meta Platforms (+12%): The parent company of Facebook and Instagram is back in the black, reporting a better-than-expected quarter after its disappointment in the previous period. The company was able to capitalise on a year-on-year increase in the number of Facebook users and presented a better-than-expected revenue outlook for the current quarter. These good results supported investor sentiment.
Losers:
First Republic (-56%): The San Francisco-based bank remains the weakest link in the US sector. There are whispers that US regulators, politicians and investors are looking for ways to stem the bleeding and avoid a repeat of the domino effect in the sector. First Republic, which was trading at over USD 120 two months ago, is now trading at less than 7% and is proving unable to restore confidence.
Compass (-27%): Some headwinds for the real estate brokerage specialist. The group missed estimates for the current quarter, and delivered a bleak outlook for the next. With the property market contracting, the group’s turnover dropped by 31% over the period. Its cost-cutting efforts were not enough to compensate for this decline.
Enphase Energy (-26%): The solar energy technology group saw its share price fall sharply this week after publishing its quarterly results. While profits for the period were better than expected, sales, although up 60%, and forecasts for the second quarter were disappointing. Since the beginning of the year, the manufacturer has been suffering from the lack of confidence in the economy and rising interest rates. However, let’s remember that it has had a remarkable stock market performance over the past five years.
Activision Blizzard (-9%): We were expecting it, but it’s official. The CMA, the British competition authority, has finally opposed Microsoft’s $69 billion takeover of the video game publisher. The tech giant’s promises and commitments were not enough to convince the institution that the merger was well founded. The buyer has announced that it is appealing the decision, Activision says it remains optimistic that the deal will go through, and analysts remain positive about the case.
