Wednesday’s Headlines: Zoom Smashes Q1 Earnings

Wednesday’s Headlines: Zoom Smashes Q1 Earnings

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Baozun (BZUN) +7.2%

Duluth Trading (DLTH) +4.1%

Huazhu Hotels Group (HTHT) +4.0%

IMAX (IMAX) +3.1%

Wynn Resorts (WYNN) +2.8%

Moving Down ⬇️

Yext (YEXT) -5.5% Group (TCOM) -4.0%

TrueCar (TRUE) -3.9%

Zillow (Z) -3.2%

FactSet (FDS) -3.1%

1. Despite returns to the traditional office and a gradual reopening thanks to vaccinations worldwide, Zoom (ZM) is showing no signs of slowing. The teleconferencing software leader reported better-than-expected first-quarter results Tuesday, with sales growth of 191% coming in at $956.2 million, and earnings per share of $1.32. CEO Eric Yuan was assured of the company’s continued success post-pandemic, stating: “Work is no longer a place, it’s a space where Zoom serves to empower your teams to connect and bring their best ideas to life.” Read the official press release here

2. Investors don’t seem too concerned with Tesla’s (TSLA) latest price increase announcement, with shares remaining flat on Tuesday. A tweet on Monday night from CEO Elon Musk confirmed that the price of Tesla vehicles would be increasing, “due to major supply chain price pressure industry-wide. Raw materials especially.” There has been no confirmation of how much prices will increase by, but investors should not be concerned, as supply and demand issues are common across most industries and are unlikely to impact Tesla’s long-term growth plans. Read the full report here.  

3. It’s either a feast or a famine when it comes to Twitter (TWTR) product updates. Having announced a $2.99 subscription service last week, Twitter announced yesterday that it would begin pilot testing Fleet ads in the U.S. This will bring full-screen, vertical format ads to Twitter for the first time, allowing it to better compete with the vertical ads offered across social media platforms, including Facebook, Instagram, Snapchat, and TikTok, among others. Read the full release here

Some more earnings from last night:

StoneCo (STNE)
Shares in the fintech solutions provider are falling after hours following an earnings miss, reporting revenue of R$867.7 ($159 million) and earnings per share of R$0.60 ($0.11). In its earnings call, the company cited the severe impact of COVID-19 in its home market of Brazil as the reason for the earnings miss but reiterated that it was ready for a full economic recovery. Read more here.

Get this week’s full earnings calendar here.

There are 2 companies on the MyWallSt shortlist that will report earnings today:

Smartsheet (SMAR)
nCino (NCNO)