Liontree Weekly Update
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Liontree Weekly Update
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20252024

It was an earnings avalanche (!) this week with over 90 companies in our universe reporting across a wide range of sub-sectors. It feels like a bit of a blur at this point, but we tried to cover as much ground as possible with updates across music, digital advertising, live events/concerts, last mile delivery, online travel, and sports betting, among other areas. In the background, the markets were under pressure with Nasdaq falling -3% as big tech sold off and the S&P 500 was down -1.6%. Concerns about the AI trade as well as sensitivity regarding the health of the consumers were front and center. But the economy seems to be chugging along.

Would you say this week was "trick" or "treat"?!  I think we got a bit of both in this incredibly busy TMT earnings week! The markets behaved with tech leading (Nasdaq rallied +2.2% vs the S&P 500 +0.7%), as some heavy weight losses from the likes of Meta (-12%) was offset by gains from companies like Amazon (+9%) and Google (+8%), among others.

The markets maintained their positive momentum from the week prior, with the S&P 500 rallying +1.9% and Nasdaq increasing +2.3%, as both, once again, logged record highs. The macro themes generally remain the same with earnings really starting to ramp. On the plus side, according to FactSet, almost 30% of S&P 500 companies have now reported and 84% of those beat earnings estimates (which is higher than the 70% 5-yr avg). In our sector, Netflix as well as Connectivity giants AT&T and T-Mobile were the main earnings events.