Affirm’s Adaptive Checkout, a service that enables customers to make payments over a period of time, will now be available as another payment option for merchants using Amazon Pay.
The offering will simplify Amazon Pay’s payment solution on Amazon.com and the Amazon mobile app.
Shares in Stitch Fix soared 28.5 per cent at the time of writing, after the online personalised styling service company reported better-than-expected quarterly results and introduced new cost-cutting initiatives.
Stitch Fix posted a loss of US$0.19 per share for the fiscal 2023 third quarter, which came in below market consensus. The company highlighted its success in maintaining “tight cost controls”, which pushed ebitda to US$10.1 million and exceeded its previous guidance range.
Game-themed restaurant chain Dave & Buster’s jumped 19.3 per cent following first quarter income of US$70.1 million, or US$1.45 per share.
Despite revenue of the entertainment giant falling short of expectations, coming in at US$597.3 million, it still represented a notable 32.4 per cent increase compared to the previous period.
Management also disclosed two new agreements to expand the brand through franchises in India and Australia.
Coinbase, the cryptocurrency exchange, experienced a modest gain of 2.7 per cent, after losing 12.0 per cent in the previous session.
The US Securities and Exchange Commission (SEC) filed a lawsuit against Coinbase on Tuesday, alleging the exchange has been operating as an unregistered securities broker.
New Zealand
Infratil announced a $1.8 billion agreement to raise its ownership stake in One NZ (formerly Vodafone NZ) from 49.95 per cent to 99.90 per cent.
Under this deal, Infratil will acquire the shares previously held by its Canadian partner Brookfield Asset Management, with a mixture of cash, debt and an $850 million equity raise to form the new ownership structure of One NZ.
Retail investors will have the opportunity to participate via a $100 million offer, which will keep Infratil in a trading halt until Friday morning.
On the back of the deal, Infratil has revised its full-year ebitdaf guidance range from $570-$610 million to $800-$840 million, with One NZ now becoming the largest asset within Infratil’s portfolio.
The NZX50 hit its lowest level in nearly ten weeks, closing yesterday’s trading session down 1.1 per cent.
Shares of Pacific Edge slumped 78.0 per cent after the cancer diagnostics company announced to the market it will no longer receive Medicare coverage for its Cxbladder tests in the US market.
Overseas funding is expected to stop from next week. In the year ended March 2023, tests for Medicare and Medicare Advantage generated about 77.3 per cent ($15.3 million) of total operating revenue.
Pacific Edge said revenue is “expected to reduce substantially from current levels until Cxbladder tests regain coverage”.
Management explained that the company will explore legal options, including an appeal, in order to gain greater clarity.
Ebos Group continued its downward movement from Tuesday, falling a further 5.0 per cent after the company lost its $1.9 billion per year supply contract with Chemist Warehouse.
Australia
The Australian share market fell 0.2 per cent yesterday. Dragging the index lower was the energy sector, down 0.7 per cent. Major banks also fell into the red.
Westpac shares dropped 1.5 per cent, National Australia Bank shed 1.8 per cent and Commonwealth Bank lost 0.9 per cent yesterday.
On the flipside, healthcare stocks rallied throughout Wednesday’s trading session.
PolyNovo, which specalises in burns treatment, surged 15.8 per cent higher after resuming from a trading halt. The company reported its highest-ever group sales of AU$7.2 million for the month of May 2023.
This growth was largely driven by increased demand for PolyNovo’s surgical products in the United Sates, where sales nearly doubled during May.
In other news, Australia’s economy experienced its slowest growth in one-and-a-half years during the last quarter.
Data from the Australian Bureau of Statistics (ABS) showed GDP expanded by 0.2 per cent, quarter-on-quarter, a decrease from 0.6 per cent growth in the previous quarter.
The market saw higher prices and rising interest rates biting into consumer spending, which lead to a modest rise of 0.2 per cent in household spending.
The figures also revealed bleak household finances, with the saving-to-income ratio falling to 3.7 per cent – its lowest level in nearly 15 years.
Australian wages provided some light, with compensation of employees up 2.4 per cent. The GDP readings come on the back of The Reserve Bank of Australia increasing interest rates by 25 basis points on Tuesday.
Coming up today
US: Initial Jobless Claims
Eurozone: Q1 GDP, Employment
Australia: Trade Balance, Boral Investor Day.
For more information on the latest market moves, get in touch with Jarden.
The Jarden Brief is provided for general information purposes only. It reflects views and research available at the time of publication, using external sources, systems and other data and information we believe to be accurate, complete and reliable at the time of preparation. We make no representation or warranty as to the accuracy, correctness and completeness of that information, and will not be liable or responsible for any error or omission. The Jarden Brief is not to be relied upon as a basis for making any investment decision. Please seek specific investment advice before making any investment decision. Jarden Securities Limited is an NZX Firm. A financial advice disclosure statement is available free of charge at https://www.jarden.co.nz/our-services/wealth-management/financial-advice-provider-disclosure-statement/.
Full disclaimer available at: https://www.jarden.co.nz/wealth-sales-and-research-disclaimer
All market pricing and announcements are sourced from Refinitiv, NZX and ASX.
