Wednesday’s Headlines: Robinhood Surges 24%
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Under Armour (UAA) +7.5%
Pinterest (PINS) +5.1%
Ulta Beauty (ULTA) +2.9%
Datadog (DDOG) +2.7%
Moving Down ⬇️
Trip.com Group (TCOM) -5.4%
Boston Beer Co. (SAM) -5.3%
Spotify (SPOT) -4.6%
2U (TWOU) -4.4%
1. For no other apparent reason than its popularity on Reddit, Robinhood shares surged 24% yesterday to close at $46.80 per share — well above the $38 IPO price it set on its debut last Thursday. While there has been no company-specific news to back this jump, it has been the second-most discussed name on Reddit’s /WallStreetBets forum over the past 24 hours and it was the third most-traded stock by self-directed retail investors on Fidelity. The commission-free investing platform will likely suffer from volatility in the coming months due to widespread interest in the stock amongst retail traders, as well as its CEO, Vlad Tenev’s, massive army of Twitter followers, clinging to every word he says. Read more on this here.
2. Acquisitions are all the rage of late after Veeva Systems (VEEV) snapped up Irish-based Learnaboutgmp for an undisclosed fee. While you may have trouble pronouncing it, what it does is not much simpler, as it is a leading provider of accredited GxP training for life sciences, boasting more than 170 course titles and over 450 microlearning assets, which Veeva will now add to its Veeva Vault Training learning management application. The pharmaceutical cloud-computing specialist hopes that Learnaboutgmp will up its e-learning game, with Kent Malmros, Veeva's senior director of Vault Training, stating: “By bringing together industry-leading learning technology and content, we aim to help customers drive more strategic training programs that improve job competency and compliance." Read the official press release here.
3. Don’t call it a comeback, but Under Armour (UAA) just reported yet another impressive earnings beat, sending its share price up 7.5% on Tuesday. The athletic apparel retailer posted earnings per share of $0.24 on revenue of $1.35 billion, far surpassing analyst expectations of $0.06 on revenue of $1.21 billion. Sales in North America, its largest market, were largely to thank after rising 101% year-over-year (YoY) to $905 million, while international revenue doubled to $446 million. “I believe this year sets a robust foundation that positions us well for our next chapter of profitable growth,” CEO Patrik Frisk said in a statement. Read the official press release here.
Some more earnings from last night:
The video game publisher managed to put recent scandals behind it for a moment last night to report revenue of $1.92 billion and EPS of $0.91, exceeding analyst expectations. However, the company did address its recent sexual harassment and discrimination allegations, noting, amongst other things: “We will continue to investigate each and every claim and complaint that we receive. When we learn of shortcomings, we will take decisive action. To strengthen our capabilities in this area we will be adding additional staff and resources.” Read more here.
Another earnings beat was in store for the software company after it reported second-quarter revenues of $242.1 million, up 33.3% YoY, with net income jumping 21.6% to $52.3 million, or $0.90 per diluted share. The company did warn that fluctuations in client employee numbers could directly affect recurring revenue as businesses continue to struggle and change as a result of the pandemic, but so far it has caused Paycom to grow. Read more here.
There are 9 companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.