Spotify Technology SA (STAR)
SPOT - NYSE
Did you miss out on Taylor Swift tickets? Here’s an idea: Take the money you would have spent and invest it in Spotify Technology SA. Shares of the music and podcast streaming service have been rising beyond investors’ Wildest Dreams, as third-quarter revenue jumped 19 per cent, driven by strong growth in premium subscribers and higher ad sales on its free tier. With the stock up more than 150 per cent this year, you might even say it’s a Love Story between investors and the company. Hey, Don’t Blame Me if you missed out on the gains. I wrote about Spotify back in February, when it was becoming clear that the company’s premium-subscriber growth, price increases and cost cutting were making the stock in Style with investors. Just Shake it Off already.
Geo Group Inc. (STAR)
GEO - NYSE
If U.S. president-elect Donald Trump makes good on his pledge to deport millions of undocumented migrants, you can bet he won’t be putting them up in one of his plush hotels while they wait for their flights out of the country. Instead, they’ll likely be detained in private prisons. Shares of Geo Group Inc., the country’s largest private-prison operator, surged after Mr. Trump’s election win, and they gained more ground this week after he appointed immigration hard-liner Tom Homan as his “border czar.” Even before that appointment, Geo wasn’t hiding its glee at the prospect of what could be the largest mass deportation in U.S. history. “The Geo Group was built for this unique moment in our company’s … history and the opportunities that it will bring,” company founder George Zoley said. What could go wrong?
Rocket Lab USA Inc. (STAR)
RKLB - Nasdaq
Well, Rocket Lab USA Inc. certainly is living up to its name. Shares of the satellite launcher and SpaceX competitor have rocketed higher by about 300 per cent in the past year, and the company’s strong third-quarter results this week gave the stock some additional thrust. With revenue rising 55 per cent to US$105-million and Rocket Lab expecting that number to climb to a record of between US$125-million and US$135-million in the fourth quarter, analysts were raising their price targets on the shares faster than you can sing the chorus to Rocket Man: “Rocket man, burning all the strings I’ve ever known.” No, wait. “Rocket man, burning down the streets of heaven, ohhh.” I’ll get back to you.
Dorel Industries Inc. (DOG)
DII.B - TSX
Dorel Industries Inc. has a small favour to ask: Please conceive more babies. Shares of the Montreal-based company sank after its third-quarter revenue slipped 1.5 per cent to US$354.2-million and its net loss more than doubled to US$21.9-million, hurt by “significant challenges” in its home-products business. But even as sales of futons, fireplaces, tables and other products plunged 14 per cent, revenue in Dorel’s juvenile division – which makes strollers, car seats and other baby items – rose 9 per cent. The more babies you make, the more baby gear Dorel sells, and the higher the stock price goes. So get busy, people. Investors are counting on you.
AutoCanada Inc. (STAR)
ACQ - TSX
Not fun: Trying to haggle on the price of a new car while the salesperson constantly ducks out to “check with the manager.” Fun: Owning shares of automobile dealership operator AutoCanada Inc. It wasn’t always fun, mind you. When inflation and interest rates were soaring, many consumers were in no mood to shell out for a new car. Now that rates are dropping and inflation has cooled, the industry may soon enjoy a tailwind. Even as AutoCanada’s revenue and earnings fell in the third quarter, both metrics beat expectations, prompting National Bank Financial analyst Maxim Sytchev to upgrade the stock to an “outperform” rating. The “worst feels like it’s behind us,” said Mr. Sytchev, who also cited the company’s cost-cutting efforts. Investors are loving that new car smell.