At Spaceship we’re long-term investors, but we still keep an eye on what’s happening in the markets day to day.
This week, we’re taking a look at some of the bigger movements in our Spaceship Voyager portfolios from the month of January 2024.
Moving up
Megaport
Megaport rose 38.15% between 1 and 31 January 2024.
Megaport was founded in Australia.
It uses global reach, a Software Defined Network (SDN), and an online hub to help its customers connect to the cloud, make use of their data, and connect to other services.
Why did Megaport stock go up?
Stock prices can move for a variety of reasons and a big one is earnings reports, which give updates on a company’s progress compared to different time periods, such as quarterly, half yearly, or annually.
When Megaport announced its second quarter results on 30 January 2024, the company revealed it had grown its customers by 7% year on year and its revenue by 5% quarter on quarter.
The market loved it in part because it represented a strong turnaround in profitability, and in part because it was unexpected: sometimes the biggest jumps in share prices happen when a company exceeds expectations and investors have to reassess their strategies.
Megaport is in the Spaceship Universe Portfolio.
Nvidia
Nvidia rose 30.83% between 1 and 31 January 2024.
When Nvidia invented the GPU in 1999 it ended up being a huge deal: first it helped kickstart gaming and revived video graphics, and then it threw fuel on the AI fire: the GPU acts as the brain of digital products, including ChatGPT.
Why did Nvidia stock go up?
Nvidia’s chips have assumed a position as one of the building blocks of generative AI – which has been having a moment.
It turns out calculating all those pixels on computer screens was helpful in crunching large sets of data all at once, a helpful process for AI.
Nvidia’s stock price spent most of January climbing to an all-time-high, which it reached on 30 January.
Earlier in the month, CEO Jensen Huang had told a J.P. Morgan Healthcare Conference that “This is the generative AI revolution.”
He said that this is the year that every industry becomes a technology industry.
It looks like the market took note.
Nvidia is in the Spaceship Universe, Spaceship Earth, and Spaceship Origin Portfolios.
CrowdStrike
CrowdStrike rose 21.81% between 1 and 31 January 2024.
CrowdStrike is a cybersecurity company that helps its customers defend themselves against cyber threats, such as hacks and data breaches. CrowdStrike went public in 2019.
Why did Crowdstrike stock go up?
CrowdStrike also spent January climbing to all-time-highs.
On January 8, the International Data Corporation released its sponsored whitepaper showing CrowdStrike delivers its cybersecurity customers a $6 return for every $1 they invest, further proving the value of the platform.
CrowdStrike is also seeing increased demand for its cybersecurity products due to new Securities Exchange Commission (SEC) rules.
This requires listed companies to disclose material cybersecurity incidents they experience and to disclose on an annual basis material information regarding their cybersecurity risk management, strategy, and governance.
CrowdStrike’s also got a Super Bowl ad lined up: here’s a sneak peek the company released.
CrowdStrike is in the Spaceship Universe and Spaceship Earth Portfolios.
Advanced Micro Devices
Advanced Micro Devices rose 20.47% between 1 and 31 January 2024.
AMD has been around since 1969. Its high performance computing has helped power advances in aerodynamics, AI and cloud-computing.
Why did Advanced Micro Devices stock go up?
AMD’s been benefiting from the surge in AI because AMD is aiming to take a larger piece of the GPU market from Nvidia.
The company announced US$3.5 billion in pre-orders of their new AI GPU chips.
While these numbers are small compared to Nvidia, these sales are on pace to be the fastest revenue ramp of any product in the company's history.
Additionally on 8 January it revealed its next-gen desktop processors that are intended for extreme PC gaming and creator performance – so basically anyone who uses their PC to create or experience alternative worlds.
Advanced Micro Devices is in the Spaceship Universe and Spaceship Earth Portfolios.
Netflix
Netflix rose 19.31% between 1 and 31 January 2024.
Netflix is a streaming company that delivers original and third party content to customers all around the world.
It was founded in 1997 as a DVD mail delivery rental service.
Why did Netflix stock go up?
We asked the Spaceship team for their top Netflix picks from January and they said, “Boy Swallows Universe!” “Society of the Snow!” “Griselda!” “Blackfish!”
Meanwhile, across the globe, Netflix was reporting its best ever year with more than US $33 billion total revenue and more than US $5 billion of net total profits.
Netflix added 13 million subscribers in calendar year Q4 of 2023.
Its ad-tier model is gaining an incremental share of new users in the markets where Netflix piloted the cheaper, ad-supported subscription plan.
It’s been monetising users with the crackdown on password sharing, it’s had several hits such as the David Beckham docuseries and several Oscar nominated movies, and it announced a partnership with WWE in a push towards live streaming.
Netflix continues to be a leader in investing in content and building a dominant business in the global streaming market.
Netflix is in the Spaceship Universe and Spaceship Origin Portfolios.
Moving down
Enphase Energy
Enphase Energy fell 16.94% between 1 and 31 January 2024.
Enphase Energy was founded in 2006. It produces clean energy systems which utilise its microinverter tech to power homes around the world.
Why did Enphase Energy stock go down?
Enphase has been copping it for the last year, along with many companies in the renewable energy industry. This has a lot to do with rising interest rates that have curbed the amount of money available to borrow for significant renewable energy upgrades.
According to Forbes, people normally borrow money to pay for their home solar renos. Rising interest rates across the board have impacted people’s ability to pay back loans, which has had a dampening impact on Enphase’s customer demand.
On the bright, solar-powered side? As interest rates go back down, it should be well placed to recover. We are still optimistic, as we expect electricity demand and prices to continue to increase, helping solar become a relatively more affordable option.
Enphase Energy is in the Spaceship Universe and Spaceship Earth Portfolios.
Adore Beauty
Adore Beauty fell 20% between 1 and 31 January 2024.
Adore Beauty is an online beauty store. It was founded by Australian entrepreneur Kate Morris in 1999, when she was aged 21 and hustling from her garage. It listed on the ASX in 2020.
Why did Adore Beauty stock go down?
Adore Beauty has had several headwinds in the last few years, from rising costs, increasing competition, and a failed takeover bid late last year.
Shares have pulled back after the failed takeover with the Adore board rejecting the proposal with the view that the bid “undervalued the company, was unable to be implemented, and was not in the best interests of shareholders.”
Adore still has over 800,000 customers, is increasing its share of repeat purchases, and grew top line 2.5x in the past four years, as at 30 October 2023.
We’ll keep watching the company’s developments over the coming quarters for the business.
Adore Beauty is in the Spaceship Universe Portfolio.
Tesla
Tesla fell 20.42% between 1 and 31 January 2024.
Tesla was founded in 2003, with the mission to accelerate the world's transition to sustainable energy. Its products have included electric cars, batteries, and solar energy panels.
Why did Tesla stock go down?
Tesla reported quarterly earnings on 24 January 2024 that warned of lower vehicle sales growth in 2024 than it achieved in 2023. The results missed expectations – which means that the market was expecting better results than Tesla was able to deliver, and so shares fell.
Tesla is in the Spaceship Universe and Spaceship Earth Portfolios.
Nanosonics
Nanosonics fell 32.27% between 1 and 31 January 2024.
Nanosonics is focused on preventing and decontaminating infection in medical settings. Specifically, it developed an automated disinfection technology which it uses to disinfect ultrasound probes. It's an Aussie company listed on the ASX.
Why did Nanosonics stock go down?
Nanosonics released a trading update on 24 January that revealed lower than expected sales for its key product due to hospital budgetary concerns as they extend the use of their existing trophon equipment, delaying the trophon2 upgrade capital purchase. The company is forecasting that while its product will still grow, it’s likely to be slower than usual.
Nanosonics is in the Spaceship Universe Portfolio.
Domino’s Pizza Enterprises
Domino's Pizza Enterprises fell 32.73% between 1 and 31 January 2024.
Domino's Pizza Enterprises is a franchisee of Domino's Pizza Inc. It was established in 1983. It's been helping people spread pizza to the masses since the 80s, with thousands of franchises all around the world. Domino's Pizza Enterprises is listed on the ASX.
Why did Domino’s Pizza Enterprises stock go down?
Domino’s released a trading update on 24 January where it noted that while sales have been growing strongly in Germany, Australia, and New Zealand, they’ve been decreasing in Japan, Taiwan, Malaysia, and France, and it’s impacting on the business more generally.
The company will release further updates when it announces its half year results on 21 February 2024.
Domino’s Pizza Enterprises is in the Spaceship Universe Portfolio.
We asked our Spaceship Voyager investment team for a general comment about January.
Here’s what they said.
“In January, key indices such the S&P 500, Nasdaq, and ASX200 kicked off 2024 on a robust note, with some achieving record highs as investors continued to be impressed by the resilient economy, strong economic data (inflation continuing to trend downwards) and strong earnings and revenue growth.
It’s typically unusual to see discussions of lower interest rates in a strong economy but with falling inflation we may have a combination of higher company profits and lower interest rates, two big positives for the sharemarket. So far, steady economic growth (not too fast) combined with potential lower interest rates has seen investors reposition away from recession risks to growth.”
Some of our Spaceship Voyager portfolios invest in Megaport, Nvidia, CrowdStrike, Advanced Micro Devices, Netflix, Enphase Energy, Adore Beauty, Nanosonics, and Domino’s Pizza Enterprises at the time of writing.
Important! We’re sharing with you our thoughts on the companies in which Spaceship Voyager invests for your informational purposes only. We think it’s important (and interesting!) to let you know what’s happening with Spaceship Voyager’s investments. However, we are not making recommendations to buy or sell holdings in a specific company. Past performance isn’t a reliable indicator or guarantee of future performance.
