Podcast | Google & Amazon Diverge, Gentrack Tanks

26 July 2019

Global markets were lower overnight after mixed bag of earnings pointed to a slowing global economy and as European Central Bank chief Mario Draghi’s comments disappointed investors who were hoping for a more dovish stance. A rate cut at the European Central Bank's meeting in September now looks nearly certain.            

In the US,  Tech giants Alphabet (Google) and Amazon have just reported earnings results after the close, with Alphabet currently up +8% on a strong announcement while Amazon ​shares are trading lower.​

​In the latest Stock Market Movers podcast ​the podcast turns 50! An interview with a very very SPECIAL GUEST  – to listen CLICK HERE
 

Stock in Focus: Gentrack (GTK:NZX / GTK:ASX)

​​​​​​​​​​​​​​​​​​Gentrack ​shares tanked -13​% yesterday ​after downgrading its earnings guidance, blaming delays in customer contracts and potential bad debts in the UK. 

​Gentrack has been a high-flying tech name in recent times, and the share price moves illustrate the vulnerability of the share price of such stocks if there is bad news. The earnings downgrade also illustrates how Gentrack ​is​ still dependent on large contracts, despite its efforts to make more software-as-a-service sales.

We ​do not currently have full research coverage on Gentrack.

 

 
Australia & New Zealand Market Movers

​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​The Australian​ extended it rally yesterday (ASX 200 index +0.​61​%)​ ​​following ​a dovish tilt in a speech from RBA governor Philip Lowe in which he said he was prepared to cut interest rates further if need be. The major banks were among the market leaders for a second session with modest gains offsetting losses from the resources sector.
In stock news, ​Fortescue Metals Group has reported record quarterly iron ore shipments and forecast another increase next year, boosting its sales as prices spiked to five-year highs. 

The New Zealand market ​was higher on Thursday​ (NZX 50 index ​+​0.​79​%)​ ​with A2 Leading gains. In stock news, Ryman Healthcare chief executive Gordon MacLeod ​said he ​sees very strong aged-care opportunities on Australia's eastern seaboard, but won't be rushed into expanding beyond Victoria. 

 

3 Things Markets Will be Watching this Week

  1. ​​​​​​​​ US Corporate earnings season​ continues this week with tech names Amazon, Alphabet, and Facebook among those to report.
  2. The latest US economic growth (GDP) figures are published at the end of the week.
  3. Reserve Bank of Australia governor Lowe makes a speech on Thursday.
     

Have a Great Day,
 

Team

Tech giants Alphabet (Google) and Amazon have just reported earnings results after the close, with Alphabet currently up +8% on a strong announcement

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