Thursday’s Headlines: UiPath’s Blockbuster IPO
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Lemonade (LMND) +10.8%
Tripadvisor (TRIP) +6.1%
Ericsson (ERIC) +5.9%
Nordstrom (JWN) +5.9%
Evolent Health (EVH) +5.8%
Moving Down ⬇️
Netflix (NFLX) -7.4%
Boston Beer Co. (SAM) -3.9%
Spotify (SPOT) -3.5%
1. UiPath just made one of the largest U.S. software IPOs in history after the company pulled in $1.34 billion yesterday. The robotic automation company’s shares jumped 23% in its market debut, closing at $69, giving UiPath a valuation of $35.8 billion. The Romania-founded company is in a rapidly growing sector as businesses look for ways to automate their finances, HR, and legal departments, helping UiPath’s revenue increase 81% last year to $607.6 million. UiPath’s greatest strength is its proven ability to keep its customers. The company reported net revenue retention of 145% last year, meaning the average customer increased their spending by 45% from the prior year. Check out the full story here.
2. Apple (AAPL) is growing its empire by expanding its highly profitable ad business. According to reports, the iPhone maker is planning to add a second advertising slot in its App Store search page's "Suggested" section. The new layout will allow advertisers to promote their apps across the whole network, instead of in response to specific searches. The news comes as the company is planning to send prompts to iPhone users to ask if they agree to allow apps to use their data for personalized advertising. Tech rival Facebook (FB) is not happy with Apple’s new privacy decision as the move could damage the social media company's ad business. Read more on the story here.
3. Chipotle Mexican Grill (CMG) shares fell 1.6% yesterday after the company delivered mixed Q1 results. The popular Mexican restaurant chain reported revenues of $1.7 billion, up 23% year-on-year, which missed consensus estimates of $1.75 billion. However, Chipotle posted adjusted earnings per share (EPS) of $5.36 that beat Wall Street’s estimates of $4.92. The company’s revenue growth was driven by a 133% year-on-year increase in digital sales thanks to the success of new product launches and strong marketing pushing online sales during the pandemic. Chipotle shareholders were also pleased to hear that the company is planning to open an additional 200 new restaurants this year. See the full press release here.
One more earning from last night:
The telecommunications company missed analysts' forecasts, reporting total revenue of 49.8 billion Swedish krona ($5.91 billion), unchanged from last year, on earnings of 1.04 Swedish Krona per share ($0.12). Ericsson’s strong 5G equipment sales during the quarter helped offset a loss of royalty revenue due to a patent fight with Samsung Electronics. Read the full press release here.
There are 2 companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.