Friday’s Headlines: Twitter Smashes Earnings Expectations
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Bumble (BMBL) +7.1%
Cloudflare (NET) +3.9%
Lululemon (LULU) +3.2%
Etsy (ETSY) +3.1%
Twilio (TWLO) +2.9%
Moving Down ⬇️
Nordstrom (JWN) -4.6%
Trupanion (TRUP) -3.8%
Lemonade (LMND) -3.8%
GoPro (GPRO) -3.6%
1. Twitter (TWTR) bulls have finally caught a break it seems after the company posted some impressive Q2 earnings on Thursday night. The social media site gifted investors with a 74% jump in revenue year-over-year (YoY) to $1.19 billion versus $1.07 billion expected, while earnings per share came in at an impressive $0.20 versus $0.07 anticipated. However, monetizable daily active users (mDAUs) did marginally miss expectations at 206 million. These are promising signs for the company, which has outlined its ambitions of doubling revenue between 2021 and the end of 2023, helped by the introduction of its first-ever subscription service as well as a host of new features. Here’s to many more quarters like this! Read the official press release here.
2. Shares in Activision Blizzard (ATVI) fell on Thursday after the state of California launched a suit against the gaming company. The California Department of Fair Employment and Housing (DFEH) is suing Activision Blizzard over what court documents refer to as a “frat boy” workplace culture that subjects its female employees to gender-based discrimination and “constant sexual harassment.” The list of accusations against the company is long and disturbing, and in a time where environmental, social, and corporate governance (ESG) is becoming more and more important for investors, Activision Blizzard may be in for a long and costly lawsuit. Read more here.
3. Tech shares are sending the stock market higher for a third straight day as the Nasdaq (QQQ), Dow Jones (DIA), and S&P 500 (VOO) each closed in the green yesterday. The usual Big Tech suspects of Apple (AAPL), Microsoft (MSFT), Facebook (FB), and AMAZON (AMZN) all made 1%+ gains ahead of their respective earnings calls next week, while Salesforce (CRM) jumped 2.4% following the finalization of its Slack acquisition on Wednesday night. However, concerns remain in regards to heightened inflation and fears of a steepening yield curve, which could cause investors to pull out of tech stocks in favor of more traditional, value-oriented stocks, as we’ve seen in the past. Read the complete story here.
Boston Beer (SAM)
The beer is tasting a bit flat in Massachusetts after the Sam Adams maker failed to match analyst expectations with revenue of $602.8 million and EPS of $4.75, down from $4.88 a year ago. “We overestimated the growth of the hard seltzer category in the second quarter and the demand for Truly, which negatively impacted our volume and earnings for the quarter and our estimates for the remainder of the year,” Chief Executive Dave Burwick stated. Read more here.
Silicon Valley Bank (SIVB)
Banking may be boring, even in a place as exciting as Silicon Valley, but there was nothing boring about SIVB’s net income of $502 million, EPS of $9.09, and return on equity of 22%. The California-based firm cited an acceleration in VC investment and “thriving innovation and strong execution” as reasons for its impressive growth over the past quarter. Read more here.
There is 1 company on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.