Tuesday’s Headlines: DraftKings' Winning Streak
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
GoPro (GPRO) +7.9%
Lemonade (LMND) +5.5%
Boston Beer Co. (SAM) +4.2%
Cloudflare (NET) +3.9%
Moving Down ⬇️
Chuy's (CHUY) -6.1%
Chegg (CHGG) -5.0%
IMAX (IMAX) -4.6%
Eventbrite (EB) -3.7%
Tripadvisor (TRIP) -3.3%
1. The good news just keeps coming for DraftKings (DKNG). Fresh after announcing a partnership with Genius Sports (GENI), the online betting firm has now bought Golden Nugget Online Gaming (GNOG) for a whopping $1.56 billion. With the deal, DraftKings will have access to Golden Nugget’s 5 million customers, helping it reach a new type of audience. DraftKings is placing an even bigger bet on the business of high-stakes wagers with the expensive purchase in a bid to attract all types of gamblers as more states legalize online casino games including poker and blackjack. Golden Nugget’s shareholders seemed pleased with the deal, with its shares skyrocketing almost 50% after the news. See the full story here.
2. On Monday, Roku (ROKU) announced its plans to add 23 new shows to its ‘originals’ collection as it builds upon the company’s ad-supported content strategy. The brand-agnostic streaming service is going to use some of the content it received from its content acquisition of failed short-form streamer Quibi earlier this year, including the 10-part docuseries 'What Happens in Hollywood,' and 'Eye Candy,' a competition series. Roku’s goal is to support its ad-supported business without spending too much on content production and believes the new originals will attract more advertisers. With total streaming hours doubling in Q2, these fresh investments should help Roku differentiate its product which could lead to enhanced pricing power for it in the future. Check out the full story here.
3. It seems everyone is in expansion mode, and Planet Fitness (PLNT) is no different after it unveiled its plans to open 80 new locations in Mexico. The company has signed a franchise agreement with Fitness Para Todos (FPT) to drive growth in the Latin American country as part of its goal to expand internationally. FPT is a shared mission between the Ibarra Group (IBG), a Mexican retail company that has previously grown several U.S. brands like Old Navy and American Eagle in Mexico, and Argonne Capital Group, one of the biggest investors in Planet Fitness. Following its smashing earnings report (see below), and now expansion plans, things are finally looking up for Planet Fitness after it was hit hard during the pandemic. See more on the story here.
Some more earnings from last night:
As learning moves further into the digital world, Chegg topped analysts estimates, posting quarterly earnings of $0.43 per share on revenue of $198.5 million, up 30% year-over-year (YoY). Dan Rosensweig, CEO & President of Chegg, boasted: “Our international growth also continues to be strong, and we are confident we will exceed our initial expectation of over one million international subscribers for the year.” Read the full press release here.
Fitness fanatics and gym owners continued to rely on Nautilus for all their equipment needs in Q2, helping the firm report total sales of $185 million, up 62% YoY, the highest first-quarter sales result in the company’s history. CEO, Jim Barr, was very confident on the call about Nautilus’ future, explaining: “We believe that our planned North Star investments, particularly in marketing and our JRNY® platform, will result in more predictable growth and consistent and expanding profitability.” See the full earnings report here.
Planet Fitness (PLNT)
Thanks to clients returning to gyms, Planet Fitness swung to a profit in Q2 as membership numbers soared to 14.8 million. The franchise’s revenue more than doubled to $137.3 million, up from $40.2 million in the year-ago period, encouraging it to estimate that it will open 75 to 100 new stores by the end of the year. Access the full press release here.
The Trade Desk (TTD)
Amid strong growth in internet TV ad sales, The Trade Desk posted earnings of $0.18 per share, doubling YoY, with revenue up 101% to $280 million. CEO and founder, Jeff Green, took the time to tell shareholders about the company’s new trading platform, Solimar, which is their biggest product launch ever, with the service offering advertisers secure data onboarding, an advanced cross-channel measurement marketplace, and multi-level goal-setting. Read the full report here.
There is 1 company on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.