News from us
-Broker on exempt markets
We're delighted to share some exciting news with you, marking an important milestone for our firm. This week, we were approved by the Autorité des marchés financiers (AMF) as an exempt market dealer in Quebec and Ontario. This official recognition now enables us to offer our investment strategies to a more diversified type of investor.
The exempt market is aimed at qualified investors. This approval underlines our commitment to offering innovative investment solutions, while respecting strict regulations and rigorous compliance procedures. Being an exempt market dealer means that we are now able to solicit qualified investors, not only in Quebec, but in all the territories where we are registered.
This step reflects our dedication to maintaining the highest standards of transparency and integrity in all our operations. It enables us to strengthen our market position by offering investment options that were previously inaccessible without the full disclosure required by a prospectus.
This approval by the AMF is not only recognition of our expertise and professionalism, but also a vote of confidence for our customers who are looking to diversify their portfolios with quality investments, while benefiting from a personalized approach.
Thank you for continuing to trust our firm with your investment needs. We are here to support you in achieving your financial goals by offering a partnership based on trust, expertise and innovation.
-Council of Emerging Managers (CEM)
We are proud to announce that our President and Portfolio Manager, Philippe Pratte, has been appointed to the Board of Directors of the Council of Emerging Managers (CEM). The CEM plays a crucial role in the Canadian financial landscape by building bridges between emerging portfolio managers and asset allocators. Its mission is to promote, support and connect Canadian emerging managers with asset allocators, highlighting the many benefits of investing in local emerging firms. This appointment reflects not only recognition of Philippe's expertise and leadership in the financial sector, but also our ongoing commitment to innovation and excellence in portfolio management.
We are convinced that Philippe's participation in the CGE will bring significant added value to both our company and the Canadian financial ecosystem as a whole. We look forward to contributing to CGE's mission and to actively participating in the development of the emerging portfolio management industry in Canada.
Your portfolios in brief
Google's parent company Alphabet Inc. continues to capture the attention of investors and analysts alike, particularly following the release of its financial results. Although the company posted impressive growth, its quarterly results filed this week disappointed analysts.
-Alphabet's financial performance :
Earnings per share: $1.64 vs. $1.59 expected by LSEG.
Revenue: $86.31 billion versus $85.33 billion expected.
Google Cloud: $9.19 billion vs. $8.94 billion expected.
YouTube advertising: $9.2 billion vs. $9.21 billion expected.
Traffic acquisition costs: $13.9 billion vs. $14.1 billion expected.
Alphabet reported its fastest quarterly revenue growth since early 2022, with sales up 13% year-on-year. However, advertising revenues of $65.52 billion fell short of analysts' estimates of $65.94 billion.
With sales of over $86 billion, up 13% on the previous year, and net income of $20.7 billion, Alphabet has exceeded market expectations.
-Highlights and challenges
YouTube slightly missed expectations, despite its contribution to accelerated growth. For its part, Google Cloud remains a growth driver, expanding by 26% year-on-year in the fourth quarter, becoming profitable after years of losses. Under CEO Sundar Pichai, Alphabet continues to focus on artificial intelligence with the launch of the Gemini broad language model, planned to be licensed to customers via Google Cloud.
Alphabet booked charges of $2.1 billion in 2023 for redundancies and $1.2 billion for exiting certain offices. Net income jumped 52% in the fourth quarter to $20.7 billion.
-Perspectives
Despite some challenges, particularly in the advertising sector where Facebook and TikTok represent competitive threats, Alphabet is showing signs of resilience and innovation, particularly in the cloud and AI.
In January 2023, Alphabet joined the ranks of Amazon, Meta and Microsoft in adopting an austerity strategy, announcing a significant reduction in its workforce with the elimination of 12,000 jobs worldwide, representing just over 6% of its total workforce. This decision comes against a backdrop of increased budgetary stringency, inflationary pressures, a major antitrust trial and intense competition in the field of generative artificial intelligence. Despite these challenges, Google looks forward to 2024 with optimism, having succeeded in improving its situation. Although the company has announced further job cuts, these are on a reduced scale compared with the previous year, signalling a more measured approach to human resources management.
-Conclusion
In conclusion, despite the turbulence and challenges of the past year, Alphabet Inc. remains a key pillar in our investment portfolios. Not only has the company demonstrated its ability to generate sustained growth and exceed market expectations with impressive sales and net income, but it has also shown remarkable resilience in the face of competitive and macroeconomic challenges. Analysts' slight disappointment following the publication of the quarterly results should not overshadow Alphabet's long-term potential, thanks in particular to its strategic investments in key areas such as the cloud and artificial intelligence.
The 50% rise in its share price by 2023, despite a temporary post-earnings setback, testifies to the market's confidence in Alphabet's strategy and management. Thus, we maintain our conviction that Alphabet represents a strategic investment for those seeking to benefit from continued growth in the technology sector, making this stock a valuable component of our portfolios.
Market Brief
Monday
S&P 500: The S&P 500 closed at a record level, up 0.76% at 4,927.93 points. This record surpasses the previous high of 4,894.16 points set on January 25.
Dow: Up 224.02 points, or 0.59%, to close at 38,333.45.
NSADAQ: Ended the session with gains of 1.12% to close at 15,628.04 points.
On Monday, US equities edged higher, with the S&P 500 reaching a new closing record. Investors were gearing up for a busy week, marked by earnings updates from major technology companies, a Federal Reserve decision on interest rates, and the crucial US jobs report.
Five of the seven leading technology companies, dubbed the "Magnificent Seven", are about to publish their results. This week promises to be decisive for the stock market. The S&P 500's recent record-breaking performances have largely been driven by these tech giants. Attention is now turning to the effectiveness of their artificial intelligence efforts and the impact of their recent staff cuts.
- Stockss in brief
Tesla (TSLA) (+4%): Tesla shares jumped 4%, leading gains in the technology sector. The rise was welcome after a difficult week for the company, marked by lower production forecasts for 2024.
Nvidia (NVDA) (+1%): Nvidia shares also rose by around 1%, contributing to the NASDAQ's overall performance.
Meta Platforms (META) (+1%): Meta, formerly known as Facebook, saw its shares rise by around 1%, supporting the market's upward trend.
Microsoft (MSFT) (+1%): Microsoft joined its technology peers with a rise of around 1% in its shares.
Apple (AAPL) (-0.4%): Apple retreated slightly, down around 0.4%, being the only major company in the "Magnificent Seven" group to close lower.
Tuesday
S&P 500: The index edged back 0.06% to close at 4,924.97 points, with investors still awaiting guidance from the Federal Reserve.
Dow: The Dow added 133.86 points, up 0.35%, to close at 38,467.31 points, marking its seventh record close of the year.
NASDAQ: The index fell 0.76% to end at 15,509.90 points, reflecting caution ahead of post-market results from tech giants such as Microsoft and Alphabet.
The session saw the main stock indices post mixed performances, as investors eagerly awaited the US Federal Reserve's interest rate decision and the quarterly earnings reports of major technology companies. US consumer sentiment surged again in January, reaching its highest level since December 2021, according to the Conference Board survey. In addition, the Labor Department's JOLTS survey revealed an increase in job openings in December, suggesting strong growth and falling inflation, creating an ideal economic environment for a possible rate cut by the Fed.
- Stockss in brief
General Motors (7.81%): General Motors shares surged after the release of better-than-expected quarterly results, boosting investor confidence in the company's prospects for 2024.
UPS (-8.19%): UPS shares plummeted following the announcement of 12,000 job cuts and a 7.3% drop in business volume in the fourth quarter.
Microsoft (-0.28% at close): Despite better-than-expected results, particularly in the cloud, Microsoft shares slipped 1.34% in post-close trading.
Alphabet (-1.16% at close): Alphabet lost over 4% after the close, despite solid quarterly sales of $86 billion.
Pfizer (-1.67%): Pfizer declined after posting a fourth-quarter loss, impacted by lower revenues from its vaccine Comirnaty and antiviral Paxlovid.
Wednesday
Dow: Decrease of 0.82%, closing at 38,150.30 points.
NASDAQ: Down 2.23%, ends at 15,164.01 points.
S&P 500: down 1.61%, closing at 4,845.65 points.
The New York Stock Exchange closed sharply lower on Wednesday, dragged down by the technology sector following mixed reactions to results from Alphabet and Microsoft, as well as by the Federal Reserve tempering hopes of a rate cut as early as March. The tech sector's decline triggered a broader market decline, with other major tech companies such as Apple, Amazon and Meta also suffering losses ahead of their earnings reports.
The Federal Reserve kept interest rates unchanged, holding them at a 22-year high of between 5.25% and 5.50%. The Fed signaled a cautious approach to rate cuts, seeking "more confidence" in a sustained reduction in inflation before considering reductions.
- Stockss in brief
Microsoft (-2.69%): Despite results that were broadly in line with expectations, the stock suffered from profit-taking, as expectations had been extremely high prior to publication.
Alphabet (-7.35%): Investors focused on Google's advertising revenues, which were weaker than expected, despite better-than-expected quarterly earnings.
AMD (-2.54%): The stock also experienced profit-taking, despite better-than-expected sales and earnings in line with forecasts.
Boeing (+5.28%): The aircraft manufacturer announced a fourth-quarter loss of $23 million, far less than analysts had feared, driving up the share price.
Paramount Global (+5.28%): The media group saw its shares soar after a $14.3 billion takeover offer from American tycoon Byron Allen.
Thursday
Dow: The index rose by 0.97% to close at 38,519.84 points.
NASDAQ: The index gained 1.3% to close at 15,361.64 points.
S&P 500: The broad index gained 1.25% to close at 4,906.19 points.
The session saw the main US stock indices rebound, demonstrating positive momentum after a period of volatility. This reflects investor optimism despite macroeconomic uncertainties and expectations regarding monetary policy.
- Stockss in brief
Amazon (+2.63% at close, almost +4% after close): Amazon comfortably beat expectations with 4Q sales of $170 billion and earnings of $10.6 billion, benefiting from a strong holiday season and sustained activity in its web services.
Meta (+1.10% at close, +12% after close): Meta saw its shares soar to an all-time high after markets closed, thanks to better-than-expected fourth-quarter sales of $40 billion and earnings of $14 billion.
Apple (+1.33% closing, -1.64% after close): Apple was punished in after-hours trading despite fourth-quarter sales of $119.6 billion, as investors worried about falling iPhone sales in China.
Ford (+3%): Ford saw its share price rise, boosted by a favorable rating from Morgan Stanley, which named the automaker as its preferred choice among US carmakers.
Peloton (-24.28%): Peloton shares fell after reporting a fourth-quarter loss and issuing lower-than-expected forecasts.
Friday
Dow: The index lost 146 points, down 0.3%.
NASDAQ: The index was up 0.7% at the start of the day.
S&P 500: The broad index gained 0.2% in the morning.
Meta shares jumped 17% after the social media giant beat analysts' expectations. Meta also announced that it would pay a quarterly dividend for the first time and authorized a $50 billion share buyback program. Amazon shares were also up 7% after exceeding expectations in the fourth quarter. However, Apple saw its shares slip 2% after reporting a decline in sales in China during the first fiscal quarter.
This session reflects the complexity of the current market landscape, where strong corporate results, particularly in the technology sector, are pitted against macroeconomic concerns such as inflation and monetary policy. Investors remain attentive to Fed signals and key economic indicators as they navigate this uncertain environment.
