Why Meta and Shopify Popped and Roku Dropped Yesterday
On a day when many technology and consumer goods stocks are down big, two companies holding up well are Meta (NASDAQ: META) and Shopify (NYSE: SHOP). The two companies have a symbiotic relationship: To drive sales, Shopify store owners advertise on Meta. And the market sees their large moats as more valuable today, with shares climbing as much as 6.6% and 4.5%, respectively. Meta closed the day up 2.3%, and Shopify was up 1.4%.
The flip side is that Roku (NASDAQ: ROKU), which competes with Meta for ad dollars, was down as much as 4.8% and closed down 3.5% on the day.
A few tailwinds have helped Meta over the last week, including JPMorgan analyst Doug Anmuth putting out a positive analyst note saying there are "encouraging signs of increasing cost discipline." A hiring freeze is helping reduce costs, and that can have a big impact on earnings very quickly.
Source Fool.com
