Trend of the week: Poor corporate results, US regional banks concerns

Even though US inflation has slowed and there are signs that the cycle of monetary tightening may be coming to an end, this week’s trend was negatively impacted by a bunch of weak corporate earnings and ongoing worries about US regional banks. Although the sessions have been tumultuous, the major indices in the most recent weekly sequence are largely unchanged. This round of deliberation might last, particularly given how difficult it is to move the US debt ceiling negotiations forward.

Best Performers:

Palantir (+33%): The U.S. provider of data analytics software is performing better than anticipated; it reported first-quarter sales growth of 18% and operational profit for the first time ever. These findings were corroborated by the success of the group’s American operations, particularly its military contracts, and the success of its brand-new generative artificial intelligence platform. As a result, the company increased its annual estimate and now promises that each quarter of this year will be profitable.

Alphabet (+10%): Under pressure from rival Microsoft, the mammoth company showcased various innovations in artificial intelligence. One of them was Google, which dispelled concerns that it was losing ground to Bing, Microsoft’s OpenAI-powered search engine, by releasing an update to its primary search engine adding adds AI into its solutions. Additionally boosting the group’s stock price are the positive analyst remarks that followed the announcements.

Worst Performers:

THG (previously The Hut Group) (-35%): Things aren’t getting any better for THG! The British online sales platform, which was already in serious trouble, formally rejected the takeover proposal from the investment firm Apollo Global Management because it did not appropriately value the group, which caused a collapse in the stock price. Recall that the business went public in 2020 for $7 billion; it is currently valued at roughly $1.21 billion.

Catalent (-28%): Challenges persist for Catalent, which earlier this spring lamented production concerns. The American pharmaceutical distributor disclosed that it is delaying the release of its quarterly results so that it can make changes that should improve the findings’ quality. In addition, the organisation declared that it is decreasing its yearly projection.

Tyson Foods (-19%): The meat juggernaut let investors down. The processor reported consistent but below-expected revenues for the quarter, along with decreased earnings and a cautious outlook for the rest of the year. Margin pressures were severe due to high feed costs and falling meat prices, and the company has already announced layoffs and cost-cutting initiatives.


Second cut for the conglomerate created by billionaire Carl Icahn, Icahn Enterprises (-18%). The company already suffered last week from allegations made by the hedge fund Hindenburg Research, which claims the group inflated its assets and used Ponzi-like tactics, but it suffered even more this week after the New York prosecutor announced that she would be looking into the company’s governance and finances.

PayPal (-14%): The payment company revealed a higher-than-anticipated payment volume, $7.04 billion in quarterly revenue, and earnings per share. It also increased its sales and earnings estimate for the coming year. However, management underwhelmed analysts with its operating margin estimate. The party was hindered by Braintree, an unbranded payment processing company with poor margins.