Friday’s Headlines: Disney+ Disappoints With Slowing User Growth
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Lemonade (LMND) +7.6%
Planet Fitness (PLNT) +4.6%
Calavo Growers (CVGW) +4.5%
TrueCar (TRUE) +4.2%
Moving Down ⬇️
Wix (WIX) -7.4%
ShotSpotter (SSTI) -6.7%
Teladoc (TDOC) -5.3%
Sea Limited (SE) -5.2%
Twilio (TWLO) -5.2%
1. Disney (DIS) is following in Netflix’s (NFLX) footsteps again, but for all the wrong reasons this time, as Disney+ also reported slowing subscriber growth for Q1. The streaming service added only 103.6 million new subscribers, missing Wall Street's estimates of 109 million. There was one important difference between the two rival companies' reports though, Disney+ had lower average revenue per user, at $3.99 per month, compared to Netflix’s $14.25. Disney also posted mixed financials, with earnings per share of $0.79 smashing estimates while revenue of $15.61 billion marginally missed expectations. Disney CEO, Bob Chapek, was quick to remind investors that it is still expanding, with Disney+ launching in Malaysia and Thailand this June. Read the full press release here.
2. Google (GOOG) is feeling on top of the world after winning a lucrative cloud deal from Elon Musk’s SpaceX for Starlink internet connectivity. As part of the arrangement, SpaceX will build ground stations at Google data centers that connect Starlink satellites, with the aim of providing fast internet service in Q2. This is a big triumph for Google, which is competing against Amazon (AMZN) and Microsoft (MSFT) in the cloud computing space, especially as its ad business is slowing. Back in 2015, Google invested $900 million in SpaceX, a space company that has launched around 1,500 Starlink satellites into orbit and is said to have over 500,000 orders for its internet service. Read the full story here.
3. Google isn’t the only one landing deals; PayPal (PYPL) just announced its acquisition of Happy Returns as the digital payment leader moves into the physical retail market. The Santa Monica-based firm, which lets shoppers return items they bought online in-person, helps solve the messy logistics of returning purchased items for merchants. The service should also drive more foot traffic to those businesses as the economy reopens. PayPal hopes the buy will encourage more merchants to sign-up for the company’s other products and fits in nicely with CEO Dan Schulman’s plan to focus on its “commerce platform” to boost revenue. PayPal’s shares are up 70% over the last 12 months. Check out the full story here.
Get this week’s full earnings calendar here.