Friday’s Headlines: Jeff Bezos Isn’t Going Quietly
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Facebook (FB) +7.3%
Chuy's (CHUY) +6.3%
FedEx (FDX) +3.0%
Texas Roadhouse (TXRH) +2.9%
Pinterest (PINS) +2.8%
Moving Down ⬇️
Ford Motor Company (F) -9.4%
ServiceNow (NOW) -9.4%
Teladoc (TDOC) -8.3%
2U (TWOU) -4.8%
Twilio (TWLO) -4.7%
Morning folks! Just a quick reminder that MyWallSt will be closed on Monday, 3 May, as it is a bank holiday here in Ireland. Therefore there will be no Market Talk. Never fear though, we’ll be back with you next Tuesday with all the hottest market news.
1. Amazon (AMZN) is not a normal company, and neither is its outrageous, record-smashing Q1 results. The e-commerce leading, cloud computing, grocery bagging, streaming participating, hair salon opening behemoth reported earnings of $15.79 per share on revenue of $108.52 billion, versus estimates of $9.54 per share on revenue of $104.47 billion. The company also decided to address some recent controversy surrounding worker conditions by announcing that it would spend $1 billion on pay raises for more than half a million of its U.S. employees. Few companies have benefited from the COVID-19 pandemic as Amazon has, and in founder Jeff Bezos’ final quarter at the helm, it was never going to be an average performance. Read the official press release here.
2. Amazon isn’t the only market leader beating expectations as Mastercard (MA) posted surprise revenue growth for Q1. The payments giant reported first-quarter net income of $1.8 billion, or $1.83 a share, up from $1.7 billion, or $1.68 a share, a year earlier, with net revenue rising to $4.2 billion from $4 billion a year ago. “We saw particular strength in debit, primarily driven by fiscal stimulus and share gains,” Chief Executive Michael Miebach said on Mastercard’s earnings call. “In terms of how people are spending, e-commerce continues to be strong and we’re seeing improvement in card-present spending.” Hopefully, for Mastercard, normal spending habits are on the way back up. Read the complete report from Mastercard here.
3. Microsoft (MSFT) wants to be a gaming hero and will do so by giving more money back to game developers. The Big Tech giant will be raising the amount of revenue that developers make on its store from 70% to 88%, as of August 1. The move will see Microsoft match the arrangement that privately-held Epic Games employs in the store it has maintained since 2018. According to Microsoft officials, “Having a clear, no-strings-attached revenue share means developers can bring more games to more players and find greater commercial success from doing so.” With Microsoft’s gaming revenue increasing by 34% in Q1, it’s no surprise to see it put more effort into the space. Read the full story here.
Some more earnings from last night:
American Tower (AMT)
The cell tower real estate company beat analyst expectations for Q1 with EPS of $1.45 on revenue of $2.16 billion — up 8.3% YoY. CEO
Tom Bartlett was very optimistic about the company’s performance and cited strong European business growth and elevated demand for sites, evidenced in the 2,000 new towers that have been constructed in 2021 so far. Read more here.
The Australian software company continued its run of steady earnings reports this week as revenue grew 26% to $459.6 million for the quarter, while cash flow from operations was $79.5 million and free cash flow was $60.6 million. It added 8,600 customers in the quarter, taking its total to 182,000., 160,000 of which are using cloud products, indicating the company’s cloud focus which is very clear from last night’s report. Read more here.
Axos Financial (AX)
The bank holding company topped Wall Street’s expectations after posting adjusted earnings of $0.92 per share on revenue of $159.56 million, down from year-ago sales of $180.16 million. President of Axos Financial, Greg Garrabrants, stated: “Our fiscal third quarter 2021 results are a continuation of consistent progress in each of our businesses.” See the full press release here.
Things could be worse for the cinema chain (they could also be better), as revenues of $38.8 million rose 11% from last year, while losses per share of $0.25 were far lower than 2020. IMAX attributed the loss to the impact of theater closures due to the pandemic, as well as the capacity restrictions that are still in place in many major markets. Read more here.
Texas Roadhouse (TXRH)
People still love steak, as proven by Texas Roadhouse’s 23% increase in Q1 revenue to $800.6 million from $652.5 million a year ago, with net income soaring to $64.2 million, or $0.91 per share. It was a bright spark in an otherwise tragic quarter for the company which saw the death of founder and CEO, Kent Taylor. Ending on a positive note, the company reiterated its optimism around the reopening of businesses as vaccines are rolled out. Read more here.
The pet insurance firm posted mixed results, reporting a net loss of $12.4 million, or $0.31 per diluted share, compared to a loss of $1.1 million in the same period last year. On a positive note, Trupanion’s Q1 revenue increased 39% YoY to $154.7 million, with total enrolled pets jumping 37% during the quarter. Read the official press release here.
Twitter stock dropped some 10% after hours last night, despite the social media company beating expectations on both the top and bottom line. Investors were dissatisfied with a marginal miss on monetizable daily active users (mDAUs) — 199 million vs 200 million expected — along with a lower-than-expected outlook for the current quarter. Read more here.
It was a mixed bag for Zendesk last quarter, with revenue jumping 23% to hit $283.5 million but earnings falling short at $0.11 per share. The company also announced that CFO Elena Gomez will step down from her role in the upcoming months, with no replacement named as of yet. Read more here.
Get this week’s full earnings calendar here.