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Nia Warfield8/21/25

Coty shares sink after the beauty conglomerate posts surprise Q4 loss

Coty shares sank nearly 20% in premarket trading Thursday as investors digested the beauty conglomerate’s disappointing Q4 results after the bell Wednesday.

The cosmetics and fragrance company posted an adjusted loss of $0.05 per share, well below Wall Street’s forecast for a $0.01 profit, according to analysts polled by FactSet. Revenue came in at $1.25 billion, topping analyst estimates of $1.21 billion but still down 8% year over year. Growth was driven by Coty’s prestige fragrance portfolio, which includes Gucci, Swarovski, and Tiffany & Co.

Looking ahead, Coty guided for adjusted EPS of $0.33 to $0.36 in the first half of its fiscal year, with stronger gains expected in the back half. Analysts are projecting full-year adjusted earnings of about $0.50 per share.

Management flagged a cautious retail backdrop, noting that retailers are destocking and consumers are trading down toward cheaper value options.

“Consumer demand for beauty continues to be solid, particularly for fragrances across price points and formats,” the company said in a statement. “At the same time, macroeconomic and tariff uncertainty is fueling cautious retailer ordering and a more promotional competitive environment.”

Coty also said it expects about $70 million in gross tariff headwinds this year, driven by new US tariffs on European-made fragrances and Chinese-sourced components. To offset the impact, Coty plans to raise prices across select categories.

Prior to the earnings release, Coty shares were down 29% year to date.

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Stocks notch new closing high, buoyed by end-of-war optimism and strong bank earnings

The S&P 500 and Nasdaq 100 both notched new record closes as President Trump said the Iran war was “very close to over” and as strong earnings from Morgan Stanley and Bank of America bolstered investor sentiment.

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Oracle, Microsoft power battered software stocks toward best 3-day stretch in almost a year

Software shares are rising again early Wednesday, putting the widely watched iShares Expanded Tech Software ETF on track for its best three-day stretch in almost a year.

So far this week, Oracle is up more than 20%, Microsoft is up over 9%, and both ServiceNow and Datadog have gained more than 12%.

Intuit, CrowdStrike, Autodesk, and Atlassian were also among the software shares rising Wednesday after taking lumps on worries about AI disruption earlier this year.

Why the rebound? Mean reversion is a powerful force in markets, and some of these shares could simply be enjoying an overdue snapback.

Bloomberg suggests there’s some “bottom fishing” going on, with investors finally deciding that the price for these still highly profitable, cash flow-positive companies has fallen low enough to make them a compelling bargain.

Pat Tschosik, chief thematic strategist at research firm Ned Davis, told Sherwood News that the market may have been too panicky about software stocks as a whole, slamming the shares of software companies that could survive and thrive in the AI era along with those doomed to disruption.

Determining the difference between the winners and the losers will take a look at the fundamentals of individual companies.

“Somebody who does the homework is going to make a lot of money in these stocks,” he said.

Wall Street Goes Bottom Fishing in Beaten-Down Software Stocks

Wall Street Goes Bottom Fishing in Beaten-Down Software Stocks

So far this week, Oracle is up more than 20%, Microsoft is up over 9%, and both ServiceNow and Datadog have gained more than 12%.

Intuit, CrowdStrike, Autodesk, and Atlassian were also among the software shares rising Wednesday after taking lumps on worries about AI disruption earlier this year.

Why the rebound? Mean reversion is a powerful force in markets, and some of these shares could simply be enjoying an overdue snapback.

Bloomberg suggests there’s some “bottom fishing” going on, with investors finally deciding that the price for these still highly profitable, cash flow-positive companies has fallen low enough to make them a compelling bargain.

Pat Tschosik, chief thematic strategist at research firm Ned Davis, told Sherwood News that the market may have been too panicky about software stocks as a whole, slamming the shares of software companies that could survive and thrive in the AI era along with those doomed to disruption.

Determining the difference between the winners and the losers will take a look at the fundamentals of individual companies.

“Somebody who does the homework is going to make a lot of money in these stocks,” he said.

markets

Robinhood, Webull gain as SEC approves removal of day trading limit for small investors

Shares of Robinhood Markets and Webull are surging in premarket trading after the US Securities and Exchange Commission gave the green light to removing a rule that had impeded small traders from day trading.

The pattern day trading rule will no longer bar traders from making more than four day trades over a five-day period if their margin account has less than $25,000. The changes were initially proposed by the Financial Industry Regulatory Authority. Under the SEC order published Tuesday after the close of regular trading, all traders, regardless of account size, will just need to have enough in their margin account to cover their exposure.

(Robinhood Markets Inc. is the parent company of Sherwood Media, an independently operated media company subject to certain legal and regulatory restrictions.)

Allbirds, the quarter-zip of footwear, is leaving shoes behind to become an AI infrastructure company

Allbirds shares rocketed higher on Wednesday.

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