Wednesday’s Headlines: Amazon’s Ad Revenue Dwarfs Rivals
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
TrueCar (TRUE) +10.4%
PagerDuty (PD) +4.3%
Boston Beer Co. (SAM) +4.2%
GoPro (GPRO) +4.2%
RH (RH) +3.7%
Moving Down ⬇️
Lemonade (LMND) -5.9%
Chuy's (CHUY) -5.2%
ShotSpotter (SSTI) -5.1%
Nordstrom (JWN) -2.8%
Nautilus (NLS) -2.5%
1. Not satisfied with its dominant status in e-commerce and cloud computing, Amazon (AMZN) is fast catching its Big Tech rivals in the advertising space. According to a report from Loop Capital, Amazon’s ‘Other’ unit — which is comprised primarily of ad revenue — is now 2.4 times larger than Snap, Twitter (TWTR), Roku (ROKU), and Pinterest (PINS) combined, and it’s growing at a quicker pace. In Q1, it rose 77% year-over-year (YoY) to $6.9 billion. Amazon’s ad-supported platforms, including Twitch, now reach more than 120 million users every month, representing yet another massive revenue-generating opportunity for what is already one of the largest corporations on earth. Read the full story here.
2. It’s been a mixed 24 hours for Tesla (TSLA) after the EV giant both consolidated its China position and weakened its status in Europe. A court in Norway has found Tesla guilty of using a software update to slow the charging speed and reduce the driving range of its electric cars — the fine could amount to as much as $160 million. Meanwhile, the company has launched a data center to store local information in China, in a bid to appease the local government and consumers following recent scrutiny around its data privacy and Shanghai-manufactured vehicles. You can read the complete report from China here.
3. Shares in Nordstrom (JWN) are falling after hours following disappointing guidance from its Q1 earnings report. Despite better-than-expected revenue of $2.9 billion, losses per share were double expectations at $1.05, while the company simply reaffirmed its 2021 outlook of 25% growth, rather than hiking expectations as many of its competitors have. “While there is still considerable uncertainty with respect to COVID-19, we remain confident in our ability to deliver on our targets for 2021 and generate profitable sales growth as demand recovers,” Nordstrom CFO Anne Bramman said on the call. Read the official press release here.
Some more earnings from last night:
Huazhu Group (HTHT)
It was a strong quarter from the Chinese hotel group as domestic travel rose in Q1 to provide a YoY hotel turnover increase of 113%, leading to revenue of $355 million. According to CEO and Founder, Ji Qi, booking levels surpassed pre-pandemic records by mid-April as the world’s fastest-growing economy continues to reopen. Read more here.
The financial software firm met expectations for fiscal Q3 with revenue of $4.2 billion and non-GAAP earnings of $6.07 per share. The company said it expects revenue growth in the range of 26% to 28% for the fiscal fourth quarter, thanks largely to the increased digitization of businesses worldwide as a result of COVID-19. Read more here.
There is 1 company on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.