Growth boosts valuation multiples, but it doesn’t always last forever.
Companies that cannot maintain it are often penalized with large declines in market value, a lesson ingrained in investors who lost money in tech stocks during 2022.
Known for its orthopedically approved and comfortable sandals, Birkenstock says customers continue to buy its specialized footwear despite inflationary pressures.
We’ll have to closely pay attention to see how the tariff regime evolves, but recent de-escalation efforts have provided much-needed relief for several stocks with heavy exposure to China.
Shares of athletic apparel brand Nike (NYSE:NKE)
jumped 6.9% in the afternoon session after the major indices popped (Nasdaq +3.4%, S&P 500 +2.5%) in response to the positive outcome of U.S.-China trade negotiations, as both sides agreed to pause some tariffs for 90 days, signaling a potential turning point in ongoing tensions. This rollback cuts U.S. tariffs on Chinese goods to 30% and Chinese tariffs on U.S. imports to 10%, giving companies breathing room to reset inventories and supply chains.
Contract logistics company GXO (NYSE:GXO) announced better-than-expected revenue in Q1 CY2025, with sales up 21.2% year on year to $2.98 billion. On the other hand, next quarter’s revenue guidance of $2.97 billion was less impressive, coming in 2.6% below analysts’ estimates. Its non-GAAP profit of $0.29 per share was 14.5% above analysts’ consensus estimates.
