Wednesday’s Headlines: YouTube Could Soon Rival Netflix
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Duluth Trading (DLTH) +5.0%
FedEx (FDX) +4.3%
Match Group (MTCH) +3.5%
RH (RH) +3.5%
Nautilus (NLS) +3.1%
Moving Down ⬇️
Tesla Motors (TSLA) -4.5%
ShotSpotter (SSTI) -2.7%
Trupanion (TRUP) -2.4%
nCino (NCNO) -2.2%
1. It was a massive beat on the top and bottom lines for Google (GOOG) parent company Alphabet, with a $50 billion stock buyback also announced. Earnings came in at $26.29 per share, versus expectations of $15.82 per share, on revenue of $55.31 billion, with YouTube contributing $6.01 billion of this — up 49% year-over-year (YoY). According to recent studies, YouTube has been the biggest streaming winner of the pandemic, with 81% of U.S. adults now using the platform, and its revenues now almost rivaling that of streaming leader Netflix (NFLX). Read the official press release here.
2. Things were less cheerful for Pinterest (PINS), which saw shares fall as much as 11% after-hours following disappointing user growth. On the bright side, while its 478 million monthly active users missed expectations of 480.5 million, adjusted earnings per share of $0.11 on revenue of $485 million easily surpassed Wall Street estimates, with average revenue per user also growing to $1.04. Pinterest noted a strong correlation between user engagement and pandemic lockdowns throughout 2020. Now, according to the company, user growth is slowing and engagement is lowering as a result of easing COVID-19 restrictions. Read the full press release here.
3. It’s either a feast or a famine when it comes to Spotify (SPOT) news, with the company making headlines once more following the launch of its podcast subscription service. Spotify’s new subscription feature is powered through Anchor, its creator platform, with the move coming just one week after streaming rival Apple (AAPL) announced its own subscription podcast offering. Spotify has made the bold move of enticing creators by not taking a subscription cut for the next two years, at which time it will introduce a 5% fee. The goal is to become a one-stop shop for podcasts, and 100% revenue retention for creators may just be a big pull. Read the official announcement here.
Some more earnings from last night:
It was a mixed quarter for every parents’ favorite toymaker, after adjusted EPS beat estimates at $1.00, while revenue missed expectations at just $1.11 billion, up 1% YoY. Despite missing on revenue, Hasbro still maintains a strong cash balance of $1.43 billion, and according to CEO Brian Goldner, the company will “continue to target full-year double-digit revenue growth”. Read the official press release here.
Microsoft booked its biggest revenue growth since 2018 for Q1, coming in at $41.71 billion alongside earnings per share of $1.95 — revenue was up 19% YoY. The company credited its booming revenue to strong cloud performance as well as huge gains in PC sales resulting from coronavirus-driven shortages in 2020. Read the complete earnings report here.
The famous coffee maker reported a mixed bag on Tuesday, with earnings per share of $0.62 exceeding expectations, but revenue of $6.7 billion falling short of Wall Street estimates. However, management has claimed that it is closely monitoring ongoing vaccination efforts, which it hopes will lead to increased foot traffic in reopened economies, thus boosting its earnings expectations for the coming quarter. Read the official press release here.
There are 10 companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.