Wednesday’s Headlines: Google Deepens Its Shopify Partnership

Wednesday’s Headlines: Google Deepens Its Shopify Partnership

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

ShotSpotter (SSTI) +8.7%

Baozun (BZUN) +7.5%

nCino (NCNO) +4.6%

Evolent Health (EVH) +4.5%

Roku Inc. (ROKU) +4.2%

Moving Down ⬇️

Boston Beer Co. (SAM) -5.3%

Duluth Trading (DLTH) -3.2%

Chuy's (CHUY) -2.8%

Nordstrom (JWN) -2.6%

Under Armour (UAA) -2.3%

1. Shopify (SHOP) is on the rise after it was announced that Google (GOOG) would be extending an already existing partnership. In a bid to compete with e-commerce leader, Amazon (AMZN), Google will make it easier for Shopify’s 1.7 million merchants to reach shoppers across Google Search, Maps, Lens, Images, and YouTube “with just a few clicks.” “We believe you deserve the most choice available and we’ll continue to innovate on shopping every step of the way,” said Bill Ready, President of Commerce and Payments at Google. Read more here.

2. A mixed bag of earnings from Sea Limited (SE) saw shares rise 4% on Tuesday. The Southeast Asian company saw revenue top estimates with 147% year-over-year (YoY) growth to $1.8 billion but fell short on adjusted EBITDA of $88.1 million. This was an improvement on the $69.9 million loss in last year’s quarter but well below the $172.9 million consensus. Thanks to continued growth in its digital entertainment business, where active users increased by 61% YoY to 649 million, the company remains positive of growth going forward despite the rise of local competitors. Read the official press release here

3. It will take more than a global pandemic to keep Home Depot (HD) down after the retailer crushed Wall Street estimates for Q1. Earnings per share came in at $3.86 on revenue of $37.5 billion, with global same-store sales surging a whopping 31%, while online revenue jumped 27%. “The current shortage of new housing clearly is helping to drive improvements in the home values, which is a good thing for spending in the home,” CEO Craig Menear said on the conference call. Read the official press release here

Some more earnings from last night:

Baozun (BZUN)
The Chinese e-commerce firm missed revenue growth estimates with net income of $308.4 million, despite gross merchandise volume (GMV) rising an impressive 37% YoY to $2.06 billion. CEO Vincent Qiu cited the company’s belief that “technology empowers future success”, as well as its comprehensive infrastructure as the driving force behind these results. Read more here (TCOM)
Things are looking up for the Singapore-based travel agency after it announced first-quarter net income of $273 million, after reporting a loss in the same period a year earlier. “Despite the challenges in January and February of 2021 due to outbreaks of the virus during the winter season, China domestic travel rebounded quickly in March and showed stronger momentum in April and May,” said Jane Sun, Chief Executive Officer. Read more here

Take-Two Interactive (TTWO)
The gaming giant had a solid fiscal 2021, soaring past expectations with EPS of $5.09 on revenue of $3.4 billion, though investors were unhappy that it has forecasted to make less money per share in 2022, with an EPS range of just $1.95 - $2.20. This will not boost consumer or investor confidence as it implies that the company has no plans for any major game releases this year. Read more here

There is 1 company on the MyWallSt shortlist that will report earnings today:

Copart (CPRT)

Get this week’s full earnings calendar here.