Thursday’s Headlines: Shopify Revenue Soars 110%
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Shopify (SHOP) +11.4%
Wix (WIX) +4.6%
Ctrip (TCOM) +3.7%
Google (GOOG) +3.2%
Chuy's (CHUY) +2.0%
Moving Down ⬇️
Pinterest (PINS) -14.5%
Spotify (SPOT) -12.3%
Duluth Trading (DLTH) -4.5%
Starbucks (SBUX) -3.2%
Microsoft (MSFT) -2.8%
1. Shares in Shopify (SHOP) soared more than 11% on Wednesday following the company’s massive earnings beat for Q1. The pretender to Amazon’s (AMZN) e-commerce crown saw revenue rise a whopping 110% year-over-year (YoY) to $988.6 million, smashing estimates of $863 million, while earnings per share (EPS) of $2.01 was well beyond Wall Street’s expectations of $0.75. The company was one of the big pandemic winners from 2020 as people shifted their retail shopping online. Investors will be hoping that Shopify can maintain this growth momentum as economies across the globe get back to normal; Q1 was a good start. Read Shopify’s official report here.
2. Apple (AAPL) did what it does best and smashed Wall Street expectations in Q1 as sales soared 54% YoY. EPS of $1.40 on revenue of $89.58 billion was helped by double-digit growth in every single one of its product categories — including a 27% jump in services, a 65.5% leap in iPhone sales, and more than 70% growth in both iPad and Mac sales. While Apple has previously attributed such impressive growth to lockdown sales as people seek to entertain themselves, this Q1 performance indicates that the trend may persist as the world’s economies begin to reopen. Read the official press release here.
3. In a brief respite from earnings news, Tesla (TSLA) has one more investigation it must contend with, and this time it’s coming on from both sides of the Atlantic. The U.S. Environmental Protection Agency (EPA) has accused Tesla of failing to prove it is in compliance with federal emission standards for hazardous air pollutants, while German authorities have fined Tesla €12 million ($14.5 million) for allegedly failing to fulfill its obligations to take back old batteries from customers. Tesla has objected to the German fine despite requiring a good governmental relationship in the country as it continues construction on its first European Gigafactory in the country. Read the full story here.
Some more earnings from last night:
The online education service beat Wall Street estimates after posting revenue of $232.5 million in Q1, with a loss per share of $0.62, or $45.6 million. Since the beginning of the year, 2U shares have climbed 7% as more and more educational institutions make long-term investments in online learning, with full-year revenue expected in the range of $925 million to $955 million. Read more here.
Align Technology (ALGN)
The orthodontics equipment maker beat expectations across the board with EPS of $2.49 on revenue of $894.8 million, with Invisalign shipments soaring 66% YoY to a record 596,000. The company also outlined a new avenue of growth it hopes to expand on this year by targeting teens and pre-teens with their Invisalign Clear Aligners, which have proven popular among that demographic. Read more here.
The ad business is booming for Facebook, which reported revenue of $26.17 billion and EPS of $3.30, completely smashing Wall Street estimates. Despite the company warning investors to brace for “ad targeting headwinds” in the coming months as it deals with the fallout of Apple’s new privacy updates, CEO Mark Zuckerberg remained confident of earnings growth thanks to advancements in the e-commerce sector and strong ad sales. Read more here.
While the famous carmaker managed to easily beat analyst estimates with EPS of $0.89 and revenue of $33.5 billion in Q1, there’s trouble on the horizon. Ford CEO Jim Farley warned investors that ongoing semiconductor shortages mean that vehicle production in Q2 is expected to fall by 50%, an issue that will cause a short-term backlog for orders and revenue. Read more here.
Retail Opportunity Investment Corp (ROIC)
The popular retail ETF beat analyst expectations with $7.4 million of net income attributable to common stockholders ($0.06 per diluted share) and a $34.2 million debt reduction. The company confirmed that it will continue to take measured steps during the COVID-19 pandemic but is optimistic about sector growth in 2021.
The enterprise software maker said that revenue rose 30% YoY to $1.36 billion while earnings hit $1.52 per share, beating analyst expectations, thanks to a 30% increase in recurring subscription revenue. The company reinstated that it is optimistic of further growth as it continues to diversify away from its core business into software for human resources, customer service management, and security. Read more here.
Shares in Spotify tumbled 12% on Wednesday as user growth of 24% YoY to 356 million was on the low end of the company’s previously guided range of 354 million to 364 million. Despite missing Wall Street expectations, the music streaming service did add 3 million new premium subscribers, though this did little to assuage fears that rising competition is beginning to eat into its market share. Read more here.
The telehealth leader smashed expectations for Q1 after revenue grew 151% YoY to $453 million, while U.S. membership soared 20% to 51.5 million users. The company gave Q2 guidance of $505M — 52% growth — and full-year guidance of $2.02B — 44% YoY. Read more here.
There are 10 companies on the MyWallSt shortlist that will report earnings later today: