Diamonds and Dogs

2/8/18

Twitter (TWTR) moving higher. The social network company is up 15% to a two and a half year high after beating earnings estimates as revenue rose 2% year over year to $731.6 million well above estimates. International revenue totaled $326 million, an increase of 17% year-over-year. Total ad engagements were up 75% year-over-year. Cost per engagement (CPE) was down 42% year-over-year. Daily active usage grew 12% year-over-year. The company achieved GAAP profitability for the first time and delivered highest ever GAAP net income. Free cash flow for the year came in at $550 million. One analyst downgraded the stock to a sell and a $21 price target.

Canada Goose (GOOS) laid an egg. The trendy winter coat maker is down 17% following earnings. The company reported blow out earnings as revenue rose 27.1% year to $265.8 million well ahead of estimates. In our peak selling season, Canada Goose delivered strong performance across geographies, channels and categories, reflecting the continued demand for the Canada Goose brand around the world. The company is seeing "tremendous" demand in the Chinese market  On the downside, no one wears or buys winter coats in the next six months.