Stock market: update on Metro, Netflix and Tesla with Luc Girard

Netflix’s stock decline on April 20 melted the company’s market capitalization by nearly US$55 billion. (Photo: 123RF)

STROLL. Grocer and pharmacist Metro (MRU, $70.27) reported financial results relatively fit for the second quarter of its fiscal year 2022, which ended March 12, despite constraints from the Omicron variant and rising inflation as well as labor shortage and supply chain issues.

Luc Girard, portfolio manager at Noël Girard Lehoux Desjardins Securities, believes that the company has revealed good results in the circumstances, but that the stock is well allocated at the moment, which means that the company will have to really surprise the markets for it to continue its progress.

He also commented on the case netflix (NFLX, US$218.22), which saw its market cap plummet nearly US$55 billion in April 20 session alone after disclosing that it had lost 203,000 subscribers in the first quarter of 2022. In his view, the market reaction was not overdone and the stock’s 35% plunge on April 20 was justified, again for valuation issues.

In his opinion, the 67% plunge in the stock netflix since peaking at US$700 last November does not yet mean the end of FAANG dominance in New York, although the securities that make up the acronym (Meta Platforms [Facebook, FB, 188,07 $ US], Amazon [AMZN, 2 965,92 $ US], Apple [APPL, 166,42 $ US], netflix and Alphabet [Google, GOOGL, 2 504,60 $ US] have been under pressure recently. He compares the situation of the FAANGs to that of the Nifty Fifthy in the 1960s-70s, which at the time included companies like Polaroid, Have and Johnson & Johnson [JNJ, 183,36 $ US].

Luc Girard also commented on the very good financial results of the electric car manufacturer You’re here [TSLA, 1008,78 $ US]finding it worrying that the title is also valued for perfection.


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