Tuesday was a topsy-turvy day on Wall Street, with the Dow and S&P 500 seeing substantial losses in the morning but clawing back those declines to finish in the green. Investors were generally disappointed with the latest earnings results from giants in the technology industry, and that set a pessimistic tone for the market at the beginning of the session. Yet not all of the reports from companies were negative, and some stocks actually posted substantial gains. Shopify (NYSE: SHOP), WageWorks (NYSE: WAGE), and Sanmina (NASDAQ: SANM) were among the top performers. Here's why they did so well.
Shopify lives up to high expectations
Shares of Shopify climbed 8% after the e-commerce facilitator announced its first-quarter financial results. Expectations for Shopify had been high coming into the report, and the company delivered, posting 50% growth in both revenue and gross merchandise volume compared to year-earlier levels. Growth in Shopify's business lending and shipping services was encouraging, and adjusted net income more than doubled. Shopify's outlook for the remainder of 2019 also provided reassurance that the e-commerce specialist's business prospects look healthier than ever.
Image source: Shopify.
WageWorks gets a healthy bid
WageWorks saw its stock jump 13% after the provider of employee benefits got an unsolicited takeover bid. HealthEquity (NASDAQ: HQY), which administers health savings accounts (HSAs), offered to purchase WageWorks for $50.50 per share in cash. The move comes just a couple of weeks after WageWorks announced a partnership with Benefitfocus to enhance its own HSA offering. HealthEquity says that the $2 billion acquisition would help it boost its scale as well as add to its own list of services for its clients. WageWorks said it would review the proposal, and shareholders have high hopes even though there's no assurance that current negotiations will result in the deal actually taking place. If it goes forward, the buyout would end a turbulent period for WageWorks, whose stock dropped significantly following delays in its financial reports before bouncing back earlier this year.
Sanmina looks electric
Finally, shares of Sanmina picked up 15%. The electronic components manufacturer reported its fiscal second-quarter results, which included a 27% jump in revenue and a better-than-75% rise in adjusted net income compared to the year-ago period. CEO Michael Clarke expressed his pleasure about the results, noting that efforts to boost production and reduce inventory were instrumental in meeting robust demand among the company's customers. Sanmina also gave strong guidance for the fiscal third quarter, and that led many shareholders to conclude that the business cycle for electronics is moving upward once again.
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