Diamonds and Dogs
Under Armour is flexing its muscle today up 20% thanks to better than expected earnings. The Baltimore based company that counts such sponsors as Dwayne (The Rock) Johnson, Steph Curry, Cam Newton, Jordan Spieth, Tom Brady, and Gisele reported better than expected earnings and sales growth of 31% and 28% for the full year coming in at nearly $4 billion in just 20 short years. With the stock still down 26% from the yearly highs, the stock may see more upside.
"Cloud" computing is the hot sector except for today's dog, Servicenow Inc. (NOW). Servicenow is down 18% to a new 52 week low following better-than-expected fourth-quarter earnings, but disappointing guidance. The company marked a huge milestone in 2015, becoming only the second enterprise SaaS company to surpass $1 billion in revenue. Going forward, ServiceNow also expects 2016 revenue between $1.34 billion and $1.37 billion, up between 33% and 36% from 2015 as reported and between 34% and 37% at constant currency, but somehow investors were disappointed with the outlook. Investors have been tough to please in this market.