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Pot Stocks Take Markets Higher; Plus Beats for Cisco, Twitter, Lyft

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Mark Vickery
·3 min read
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Market indexes finished the day mixed, with none of the majors much above or below breakeven this Tuesday. While the Dow and S&P 500 dipped 0.03% and 0.11% at the close, respectively, the tech-heavy Nasdaq and small-cap Russell 2000 were up 0.14% and 0.34%, respectively. This amounts to brand new all-time closing highs for the latter two indexes, while the former two keep those record highs within view going into late trading.

Helping fuel growth in the Nasdaq today were the so-called “pot stocks,” as Canopy CGC — keepers of the Martha Stewart CBD brands, among others — gained on news that the company expects it will turn profitable overall by fiscal 2022. Shares of the Ontario-based company gained 11.9% on the news.

Elsewhere, Toronto-based Tilray TLRY were up nearly 44% on news it expects to expand its medical marijuana business into the United Kingdom, home to 66.67 million citizens. Might recreational marijuana be close behind?

We also got a new shipment of quarterly earnings reports to crack open as of Tuesday’s close, starting with Cisco Systems CSCO. The networking giant brought in 79 cents per share — good enough for a 3-cent beat on the bottom line — and swinging to a positive from the year-ago quarter’s 77 cents per share. Revenues of $11.96 billion also topped the Zacks consensus slightly. The company has not missed a single earnings estimate in 25 quarters.

Cisco’s Core Infrastructure Business made $6.39 billion in its fiscal Q2, and the company has raised its dividend yield 3% to 37 cents per share. However, lackluster guidance for fiscal Q3 (80-82 cents per share; the Zacks consensus was already 82 cents) has helped lead a late-market slip in Cisco shares, down 3%. Then again, the San Jose, CA-based tech staple has gained 30% in share price over just the past three months, so consider this merely an act of booking profits. For more on CSCO’s earnings, click here.

Twitter TWTR also beat estimates on its latest bottom line this afternoon, with 38 cents per share surpassing the Zacks consensus by eight cents, on $1.29 billion which topped the $1.19 billion expected, up 28% year over year. But Monetizable Daily Active Users (MDAU) came in short of estimates — 192 million from an expected 193.5 million. The social media major expects 20% year-over-year growth in active users in 2021. Shares were down on the news initially, but have climbed more than 4% in late trading since. For more on TWTR’s earnings, click here.

Also, Lyft LYFT shares performed better than expected on both top and bottom lines in its Q4 report late Tuesday, with a loss of 58 cents per share marking an improvement over the expected -71 cents in the quarter, though down from -41 cents in the year-ago quarter. It’s been a tough year for the ride-sharing space, though Lyft’s $45.40 average share per active rider rose from the expected $42.19 per active rider. Shares have gained 6.5% in late trading on the news.

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