The plunge in shares of Goodyear Tire & Rubber (GT) is a reminder to investors that the automotive sector is in a recession. Magna International (MGA) also fell last week after posting weak results.
GT stock is on sale, falling from $12 to around $9.25 last week after issuing a warning on weak industry trends. Though it earned a $0.19 per share profit, up from a loss of $0.34 last year, tire volume is falling. In the second half of the year, volumes will continue to fall. Inflationary costs will rise, pressuring profits.
Open Text (OTEX), a Canadian software firm, erased most of its recent uptrend by falling by 9.6% last week. The firm raised its dividend by 5%. In Q4, it earned $0.98 a share as revenue fell by 8.7% Y/Y to $1.36 billion. Cloud revenue increased, annual recurring revenue decreased, and enterprise cloud bookings increased.
Led by panic selling in Intel (INTC) and Nvidia (NVDA), Arm Holdings (ARM) fell by 23.88% last week. The Q1 adjusted EPS of $0.40 on revenue growth of 39% did not justify the hype around the stock. Arm will earn around $0.23 to $0.27 a share in Q2.
Mobileye (MBLY) is also sharply lower. The stock fell on Aug. 1, 2024, after it cut its revenue outlook. It blamed China’s weak macro environment for its disappointing profit forecast.
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