The market isn’t just rotating—it’s being rewritten. In this episode of In the Money with Amber Kanwar, Paul Moroz, Portfolio Manager at Mawer Investment Management which has more than $65 billion in AUM, explains why we’ve entered an era of “change investing,” where the biggest opportunities—and risks—come from rapid shifts in technology, competitive advantage, and capital intensity.
Apologies for the absence yesterday – I was getting an MRI of an ankle I sprained 6 months ago. So at this point all it is likely to show is that I sprained my ankle 6 months ago.
Here are five things to know today:
Help wanted: Stocks are soaring after the US added more jobs than expected in April. The US added 115,000 jobs, which is was much better than the 65,000 expected. The previous month’s job gains were also revised higher. With the US economy holding strong despite things like tariffs and higher inflation, stock investors rushed to buy. The Canadian economy was not so fortunate. Canada unexpectedly lost 17,700 jobs. Economists were looking for 10,000 new jobs. Full-time employment plunged by 46,700 positions while part-time jobs increased 29,000. The unemployment rate spiked to 6.9% which is the highest since October and up from 6.7% at last reading. “For the Bank of Canada, evidence that slack within the labour market is, if anything, increasing rather than reducing, should limit the ability for the oil price shock to spread into wider inflationary pressure. We continue to see the BoC holding interest rates at their current level throughout 2026,” wrote CIBC’s Andrew Grantham.
Tech check:
- Expedia is plunging 8% after a tepid forecast for travel bookings. Geopolitical uncertainty and higher fuel costs mean booking growth will slow to 7-9% from this quarter’s 13% growth. The number of room nights booked this quarter was also softer than expected (only growing 6% vs the street at 8%) because of issues in Mexico and the Middle East. While the travel booking platform reiterated its forecast for the year, investors appear disappointed Expedia didn’t increase it. At 12x earnings, Evercore’s Mark Mahaney says the stock is a buy here. He argues sales growth is accelerating and margins are expanding all while increasing buybacks and dividends. A new $5 billion share buyback was announced. “There is an overhang here related to AI, but we believe the market is overly discounting the ability of Expedia to further diversify its marketing channels thanks to LLMs and to improve its own offering with Agentic innovations,” he wrote.
- Clouflare is plunging after its sales forecast missed expectations and the company announced it was cutting a fifth of its workforce as it becomes an “AI-First” business. Sales grew 34% this quarter which was better than expected and profit also beat. But the forecast is creating some concern as investors want sustained signs the manager of internet traffic can nab bigger clients and participate in the AI revolution. The fact they are cutting the workforce so dramatically but not increasing their revenue forecasts is making investors nervous there may be a growth problem.
- Cloudflare isn’t getting the same market love as Block, which is soaring 10% after raising its forecast following Jack Dorsey’s decision to cut 50% of its workforce.
Tell us: Telus may come under pressure after missing expectations and announcing another key management change for a second month in a row. Profit and sales missed expectations while the number of new customers was lower than expected. Telus announced that its CFO would be retiring and replaced by Gopi Chande who is the CFO of Telus Health and Digital. This comes after the company announced Darren Entwistle would be stepping down last quarter and replaced by former CIBC CEO Victor Dodig this summer. Shareholders are waiting for Dodig to arrive on the scene to set a new strategic vision for the company and resolve the great debate on the stock: whether the 9.5% dividend will be cut.
It’s called fashion, look it up: Watch Aritzia after another blockbuster quarter. Comparable sales surged 28% which was better than the 20% expected and even more impressive when you consider it was on top of 19% growth last year. The retailer’s forecast suggests it will grow even faster with the next quarter’s revenue growing 36-39%. “Despite economic uncertainties, Aritzia’s “Everyday Luxury” is appealing to consumers with demand remaining strong,” wrote Chris Li of Desjardins. The top line growth is coming with better profitability. Margins are expanding and earnings per share are expected to be up 45% this year. Shares are trading near a record high and are up 140% over the past year.
Wham BAM: Watch Brookfield Asset Management after it demonstrated it is still able to raise capital despite anxieties in private credit right now. Brookfield raised $21 billion in the quarter, invested $34 billion and recouped $8 billion in asset sales. Fee related earnings were up 11% in the quarter, slightly better than expected. They were optimistic about the future under new CEO Connor Teskey. “We expect 2026 to be a very strong year, with growth exceeding our long-term targets,” he said in statement. “BAM has limited exposure to areas of market stress and significant exposure to AI (infrastructure), rising energy demand and opportunistic credit,” wrote TD’s Cherilyn Radbourne, “BAM reacted to share-price weakness by buying back stock.”
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