Why Fitbit, SodaStream International, and Stamps.com Jumped Today

Markets Motley Fool

The stock market once again finished with mixed performance on Thursday, as major benchmarks moved in different directions. Weakness in technology stocks pulled the Nasdaq Composite down more than other key indexes, but the Dow Jones Industrials spent much of the day in record territory. In the absence of major news on the macroeconomic or geopolitical fronts, investors are content to watch what's happening with corporate earnings, and crosscurrents in different sectors are playing out as a tug of war between bulls and bears. Yet some companies had unquestionably good news that sent their shares higher. Fitbit (NYSE: FIT), SodaStream International (NASDAQ: SODA), and Stamps.com (NASDAQ: STMP) were among the best performers on the day. Below, we'll look more closely at these stocks to tell you why they did so well.

Continue Reading Below

Fitbit gets fitter

Shares of Fitbit gained 15% after the maker of wearable fitness trackers released its second-quarter financial results. The company suffered some big setbacks during Q2, including a 40% plunge in sales that led to Fitbit posting a loss for the quarter. Fitbit sold only 3.4 million devices during the period, down from 5.7 million a year ago. The company also predicted that third-quarter results are likely to be discouraging, with sales down 20% to 25% from year-ago levels and another adjusted loss of between $0.05 and $0.20 per share. Yet even with all that bad news, investors were pleased about incremental progress that Fitbit made in cutting back on costs. Moreover, hopes are high that the smartwatch launch Fitbit plans for later this year could be a game-changer. That's a risky bet, but it's one that shareholders think could be a winning one.

SodaStream bubbles higher

SodaStream International stock climbed 13% in the wake of the release of the company's second-quarter financial report. The maker of home seltzer-making machines reported a 10% rise in revenue, with net income soaring by nearly 85% from the year-ago period. Machine unit sales were up 35%, and sales of carbon dioxide refill units rose to a record high. SodaStream reported that efforts to rein in costs were also successful, with gross margin climbing by nearly 2.5 percentage points to rise above 53%. The introduction of the new Fizzi machine helped to boost profitability, but what's really been the saving grace for SodaStream is an increase in the popularity of sparkling water. With its shift away from flavored sodas toward seltzer, SodaStream has seen its stock price climb dramatically in recent months.

Stamps.com defies Wall Street

Continue Reading Below

Finally, Stamps.com stock soared 36%. The provider of online postage services said that its earnings more than doubled in its fiscal second quarter compared to the year-earlier quarter, and it also increased its guidance for the full 2017 fiscal year. Paid customer counts and average spending per customer have both climbed to new heights, and Stamps.com is seeing strength in all of its shipping business segments. Even though mail volume in general has been down, Stamps.com has worked to make itself a viable resource for e-commerce shipping, which has boomed. In particular, with its Endicia high-volume shipping service, its ShipStation web-based e-commerce retail shipping solution, and its ShippingEasy software solution for online retailers and e-commerce merchants to organize their order flow, Stamps.com expects to participate in the online revolution well into the future.

Offer from The Motley Fool: The 10 best stocks to buy now
Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. In fact, the newsletter they run, Motley Fool Stock Advisor, has tripled the S&P 500!*

Tom and David just revealed their ten top stock picks for investors to buy right now.

Click here to get access to the full list!

*Stock Advisor returns as of August 1, 2017

Dan Caplinger has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Fitbit and Stamps.com. The Motley Fool owns shares of SodaStream. The Motley Fool has a disclosure policy.