Please ensure Javascript is enabled for purposes of website accessibility

Why GW Pharmaceuticals, MercadoLibre, and IMAX Jumped Today

By Dan Caplinger – Updated Apr 20, 2019 at 6:26PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Earnings helped lift several key stocks in the market.

Wednesday was another up-and-down session on Wall Street, with major stock indexes initially seeing substantial losses but gradually clawing their way back higher. Initially, investors reacted negatively to news of an escalation in conflict between India and Pakistan, but more favorable economic readings in the U.S. seemed to soothe market participants' nerves. Some positive news on the earnings front also helped lift sentiment, and most key benchmarks finished close to unchanged. GW Pharmaceuticals (GWPH), MercadoLibre (MELI 7.52%), and IMAX (IMAX 0.41%) were among the top performers. Here's why they did so well.

Check out the latest IMAX, MercadoLibre, and GW Pharmaceuticals earnings call transcripts.

GW gets higher

Shares of GW Pharmaceuticals jumped 14% after the pharmaceutical company reported its fourth-quarter financial results. GW celebrated the launch of its epilepsy treatment Epidiolex, which is the first treatment approved by the U.S. Food and Drug Administration that is derived from cannabis plants, during the quarter. Sales of the drug amounted to just $4.7 million, but the company saw 4,500 new patient enrollment forms and more than 500 physicians issuing prescriptions for Epidiolex. Moreover, with additional indications in the pipeline as well as a promising slate of other drug candidates, investors are excited about the prospects for the marijuana drug stock.

Box and bottle of Epidiolex with two syringes.

Image source: GW Pharmaceuticals.

MercadoLibre moves higher

MercadoLibre's stock price soared 21% following the Latin American e-commerce giant's latest report on its financial performance. Despite substantial headwinds from foreign currency fluctuations, sales for MercadoLibre climbed 20% as measured in U.S. dollars, with 62% revenue growth measured in currency-neutral terms. Performance from the company's marketplace business was mixed, but strong gains in the MercadoPago payment service helped drive overall growth. Moreover, the e-commerce specialist sees further gains likely in 2019, especially if efforts to monetize its marketplace more effectively prove successful. After a long period of stagnation in last year, MercadoLibre investors hope that this will mark a new phase of growth for the company.

IMAX shows a pretty picture

Finally, shares of IMAX picked up 9%. The big-screen theater operator said that revenue fell 13% during the fourth quarter of 2018 compared to the previous year's period, with adjusted net income declining by 25%. Yet given the meager lineup of films out of Hollywood this year, the results weren't a surprise to investors, and CEO Richard Gelfond noted that 2019 looks a lot more promising in terms of blockbuster movies expected for release. With ongoing expansion in the number of theater systems in its worldwide network, IMAX expects to capitalize on continued demand for high-quality entertainment content across the globe.

Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends MercadoLibre. The Motley Fool recommends IMAX. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

IMAX Corporation Stock Quote
IMAX Corporation
$14.55 (0.41%) $0.06
Mercadolibre, Inc. Stock Quote
Mercadolibre, Inc.
$865.24 (7.52%) $60.55
GW Pharmaceuticals plc Stock Quote
GW Pharmaceuticals plc

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/29/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.