Stock markets opened mixed on Wednesday morning, but the Nasdaq Composite (^IXIC) was an early winner. As of 10:30 a.m. EDT today, the Nasdaq was up 0.75%, while other major market benchmarks were flat to down slightly.
Many investors focused on the big-name tech stocks that reported their results after the bell on Tuesday, many of which helped move the overall market. However, some stocks that have almost nothing to do with technology were actually the biggest winners on the Nasdaq. Below, we'll look more closely at Tilray (TLRY -13.25%) and The Chefs' Warehouse (CHEF -0.86%) to see why their gains overshadowed Big Tech on Wednesday.
Tilray is smokin' hot
Shares of Tilray jumped 19% Wednesday morning. The marijuana stock reported its first financial results since closing its merger with industry peer Aphria, and investors liked what they saw.
A look at fiscal fourth-quarter numbers makes it clearer why shareholders were so happy. Acquisitions played an instrumental role in pushing net revenue up 25% compared to the year-ago period, with sales of beverages from the SweetWater business it acquired in November 2020 and wellness-related revenue from Manitoba Harvest combining with Aphria's influence on the top line. Moreover, Tilray reversed a year-ago loss with net income of $33.6 million.
Tilray has made major moves to get its business headed in the right direction. Cost-saving measures are paying off, and market share has grown steadily. One key marketing move has involved using SweetWater to come out with cross-branded products to promote cannabis brands, such as the new Broken Coast BC Lager that highlights the Broken Coast craft cannabis line of products.
Investors had been concerned about prospects coming into the report, but they seem more confident about the cannabis company's future now. If economic reopening can continue, then it would be an even bigger positive for Tilray.
Cooking up big gains
Elsewhere, shares of The Chefs' Warehouse were up more than 12%. The distributor of gourmet food products reported strong second-quarter results that left investors pleased with what they're seeing from the pandemic recovery.
The bounce Chefs' Warehouse saw was astounding. Sales soared 111% in the second quarter compared to year-ago numbers. The company reversed a massive year-earlier loss, posting modest adjusted earnings of $0.04 per share. CEO Chris Pappas explained that the return of dine-in restaurant options and greater capacity have been instrumental in its comeback, and by June, sales were back in line with pre-pandemic numbers from 2019.
Chefs' Warehouse still indicated some reluctance to suggest that it has fully put its challenges behind it. The food distributor chose not to issue full-year guidance for 2021, saying that it has to know more about not only general economic recovery but also the pace at which large events and travel-related business activity move back toward pre-pandemic levels.
Nevertheless, the gains for Chefs' Warehouse reflect the expectation that its restaurant and food service customers will make a full recovery after a highly challenging period for the food industry. That's positive news for consumers as well as for the company, and Chefs' Warehouse is hopeful that favorable trends will continue throughout 2021 and beyond.