Before the bell: Buy the dip!

The Italian Brunello Cucinelli proves that the luxury sector doesn’t have to be a bad investment in 2025. In Belgium, we see a new acquisition as we await the US earnings season.

Anyone expecting a bad trading day yesterday had to admit that in the US, the dip early in the session was quickly bought. Despite heavyweights like Apple (-1%) and Nvidia (-2%) closing lower, 380 stocks in the S&P 500 ended the day higher. The energy sector rose along with the increasing oil price, while banks like JPMorgan (+1.8%) rallied ahead of the earnings season starting tomorrow. This could potentially break the negative momentum, as analysts have significantly lowered their forecasts, making it easier for companies to beat expectations. In Europe, markets showed little gain, with stocks across the continent losing less than 0.5% on average. Brussels underperformed, with the Bel20 index losing 0.8%. Only WDP (+0.5%) and Argenx (+0.4%) posted gains. Galapagos fell 5.4%; since announcing its plan to split into two companies, its stock has dropped 23% from last week’s peak.

In Asia, markets in China and South Korea opened strongly in the green this morning, driven by rumors that Trump may reduce tariffs to avoid stoking inflation. Meanwhile, Belgian crop protection specialist Biotalys reported that it still hasn’t received approval to launch its first product, Evoca, in the US. The group began its application process in the US four years ago. From the same country, we expect December’s producer price index later today. Post-market, Calavo and Applied Blockchain will release their earnings.

All roads lead to Rome

Was the holiday season good for gift specialist Smartphoto? Investors seem unsure. The Belgian company, known for its photo gifts, typically sees its highest revenues during the end-of-year gift-giving season. However, its stock has dropped 22.7% over the past year due to underwhelming growth. The group’s earlier goal of reaching 100 million euro in revenue now seems distant. How do you grow when organic growth stalls? With an acquisition, of course. Smartphoto announced yesterday that it is acquiring Image Insight for 8 million pounds, immediately adding 6 million euro to its revenue. In 2023, revenue was 77 million euro, so the 100 million euro target is slowly coming into view.

You reap what you sow

Can companies treat employees well while rewarding shareholders? Some do, though certain political circles may doubt it. Take Brunello Cucinelli, for instance. The Italian fashion company, valued at 7.44 billion euro, reported strong growth figures yesterday. Known for donating 20% of its profits to charity and offering higher-than-average wages, the company also eschews time clocks and bans work emails after hours. It’s a dream for employees—and for shareholders. Revenue grew 12.2%, and the company expects at least 10% annual growth in 2025 and 2026. By 2030, revenue is projected to double compared to 2023. Happiness doesn’t necessarily lie in degrowth. Expect a green opening today.

Did you know…

Mark Zuckerberg swears by gray T-shirts from Brunello Cucinelli? The Italian boutique’s minimalist tees easily fetch 300 to 400 dollar apiece. Minimalism is as expensive as you make it.

This article was translated from Dutch and was originally published on Spaarvarkens.be.