3 Up, 3 Down- Week of February 3rd
By: Miles J. Bronstein
Michael Kors Holdings (Kors)- Shares of the luxury-goods company leaped on Tuesday after the company’s earnings topped analysts’ estimates. The stock rose over 17 percent, closing at nearly $90 per share. At the same time, the fashion icon and founder of the company that bears his name, Michael Kors became a billionaire. Kors owns 2 percent of the company’s shares.
Green Mountain Coffee Roasters, Inc. (GMCR)- Coca-Cola announced on Wednesday that it would take a 10 percent stake in Green Mountain Coffee worth about $1.25 billion. Shares of Green Mountain, maker of the ubiquitous Keurig coffee brewers, jumped over 26 percent on Thursday, closing at $102.10 per share. The two companies also announced plans to collaborate in producing Coca-Cola “K-cups” for use with Green Mountain’s newest product, a cold at-home beverage system. Green Mountain’s new system would surely compete with Israeli based company, SodaStream.
Yelp, Inc. (YELP)- Shares of the online urban city guide soared almost 19 percent Thursday morning, after the company announced better than expected earnings. The company expects first quarter revenue of about $74 million. Shares closed at $89.46 on Thursday.
3-D Systems (DDD)- Shares of he 3-D printing giant were pummeled this week, after the company lowered its guidance for 2014 and reported lower than expected earnings for the fourth quarter of 2013. The CEO explained that the reason for the lowered forecast was more investment in R & D. And as often happens with this sector, as DDD dropped so did the swath of other publicly traded 3-D printing companies, further signaling signs of a bubble in the up and coming sector. All in all, DDD’s shares fell about 15 percent for the week to a price of around $66 a share. Just one month ago, shares traded above $90. Thus, the question now remains whether this investment in growth will yield better returns in the future and is a shrewd move, or whether these 3-D companies will ever produce serious profits.
Buffalo Wild Wings Corp (BWLD)- The Minneapolis based buffalo wings chain announced impressive earnings than expected earnings on Tuesday, exhibiting a 12.4 percent increase in revenue and a 25 percent increase in net earnings. Despite that, the stock plunged almost 10 percent, mostly due to concerns that its stock price had become too expensive—the stock has jumped over 70 percent since this time last year.
Twitter Inc. (TWTR)- Shares of the social media site got pummeled after the company announced disappointing earnings along with some troubling figures regarding user growth, or lack thereof. Twitter’s shares were down 24 percent on Thursday but jumped back on Friday, rising more than 8 percent. Overall, though, the stock was down almost 16 percent for the week. Shares closed at $54.35 on Friday.