Allbirds founders Tim Brown (left) and Joey Zwillinger. Photo / Supplied
After a spectacular debut on Nasdaq last November — shares in the Kiwi-originated Allbirds have retreated to more modest levels.
Shares in the company surged more than 80 per cent on the issue price of US$15 each, hitting a high of US$27.55, and valuing the company at nearly US$4 billion on debut.
The stock peaked at US$28.89 soon after its listing but now trades at just US$5.81.
The San Francisco based Allbirds — founded by former All Whites and Phoenix footballer Tim Brown — makes shoes from merino wool, plant based products, and recycled materials.
They are reportedly worn by high-profile sportspeople, former US president Barack Obama, actor Leonardo DiCaprio, and Silicon Valley entrepreneurs.
The stock weakened further last month after its result for 2021 was poorly received by the market.
Its net loss for the three-month period to December widened to US$10.7 million from US$9.4m a year earlier.
For the 2021 year, Allbirds' revenue came to US$277m, up 27 per cent from 2020. The company has forecast revenue of US$355 to US$365m for the current year.
"We are pleased to report a strong finish to 2021, with Q4 representing our largest revenue quarter on record, headlining financial performance ahead of our guidance targets," said Joey Zwillinger, co-founder and co-CEO.
"Our results reflect strong global demand for the Allbirds brand and best-in-class execution by our teams during a period of ongoing macro challenges," Zwillinger said in a statement.
Allbirds is not the only US-listed company with Kiwi origins to fall from favour.
Shares in aerospace company Rocket Lab last traded at US$8.83, down from last September’s peak of US$20.72.
At its fourth-quarter results briefing, Rocket Lab said its overall forward-bookings for launches and space services had swelled from US$82m at the end of 2020 to US$241m by December 31, 2021, and today stands at US$545m — thanks in large part to a US$143m contract to design and manufacture 17 half-tonne satellites for North American communications network operator GlobalStar.
Despite its fatter contract book, the stock appeared to get caught up in the pullback of the Ukraine crisis and inflation fears.
The New Zealand share market's price earnings ratio is now back where it was in 2018, despite what was an upbeat reporting season for most.
Jarden, in its coverage of 35 reporting stocks, said its earnings revisions were generally modest and followed an upward trend.
The broker upgraded its full-year 2022 earnings per share forecasts by up to 5 per cent for 15 companies, while downgrading forecasts by up to 5 per cent for five.
For 2023, Jarden's forecasts were more balanced.
"Our revenue and ebitda estimates were comparatively more moderate in percentage terms and mostly positive," Jarden's director, equity research. Adrian Allbon, said in a research note.
"We also note that no companies in our coverage reduced their declared dividend per share versus the previous corresponding period, while 21 companies increased their dividend per share.
"While earnings overall were net positive, prices over recent months have been pressured, with interest rates rising and geopolitical uncertainties elevated," Allbon said.
"However, our analysis does suggest that New Zealand equities have mostly de-rated back to historical levels, with the S&P/NZX 50 trading at a P/E broadly in line with late 2018 (the previous time interest rates were at the current level).
"This transition has proven painful for tech and property names over the month, with gentailers offset by positive news on South Island demand/Tiwai staying.
"Contact was the standout gentailer, although the sector as a whole remains well-positioned to commence newbuild activity, with greater demand certainty," Allbon said.
Across the smaller caps, Skellerup, Heartland and Comvita all delivered on Jarden's estimates "and in our view remain solid investment prospects".
"While we view this reporting season as overall net positive, results have been overshadowed by the general downward rating pressure on the overall market, with interest rates rising and geopolitical uncertainties.
"However, our analysis does suggest that New Zealand equities have de-rated back to historical levels, with the NZX 50 trading at a P/E broadly in line with late 2018 (the previous time interest rates were at the current level."
Allbon told Stock Takes the market was responding to geopolitical events.
"What has been happening across the market is rising interest rates and geopolitical uncertainty, which have been cratering the ratios of the market and people's risk appetite," he said.
It also appeared that New Zealand was behind other countries in terms of getting back to normal in the wake of Covid-19 and the Omicron variant.
Allbon said quality would win out in times of volatility.
"We are looking for high-quality franchises that have got long-duration growth opportunities and have a good track record for execution," he said.
Allbon puts Fisher and Paykel Healthcare and Mainfreight in that category among the big cap stocks, along with Infratil and Contact Energy.
Shares in F&P Healthcare - which hit a record $36.68 last August, are now back down to where they were in March 2020 - just after the news of the Covid-19 pandemic broke.
Is your KiwiSaver funding Putin's war?
That's the question being asked by Mindful Money — a charity that promotes ethical investment.
"Ensure that your money isn't invested in Russian companies with ties to the Kremlin," Mindful Money says.
It says some funds are invested in state-backed institutions, such as Sberbank, Gazprom and Rosneft, as well as Russian government bonds.
A number of New Zealand funds have divested recently or are in the process of doing so, Mindful Money says.
Some of the other big Russian names mentioned on Mindful Money's website include Lukoil, Norilsk Nickel, Novatek and Tatneft.
A list of funds and their Russian investments is on Mindful Money's website - mindfulmoney.nz.
Australia's largest bus network Kinetic — which owns Christchurch-based Go Bus — is in exclusive talks to buy Next Capital's urban bus line business NZ Bus, the Australian Financial Review (AFR) said.
The paper said the deal would entrench its position as the largest Australasian operator.
The 30-year-old NZ Bus is one of New Zealand's biggest bus operators with more than 700 buses across 13 depots.
The company serves Auckland, Wellington and Tauranga, mostly operating on behalf of local governments.
The sale price is understood to be just north of $400m, the AFR said. Go Bus has 29 depots throughout New Zealand, according to its website.
NZ GDP falls 1% in September quarter; analysts expected 0.4% decline.