Wednesday’s Headlines: Salesforce’s Streaming Play
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
The Trade Desk (TTD) +7.6%
MercadoLibre (MELI) +7.0%
Chegg (CHGG) +6.5%
RH (RH) +4.5%
GoPro (GPRO) +4.3%
Moving Down ⬇️
Avalara (AVLR) -6.5%
Nautilus (NLS) -5.4%
Roku Inc. (ROKU) -4.6%
Smartsheet (SMAR) -4.6%
TrueCar (TRUE) -4.2%
1. Aiming to be the Netflix (NFLX) of business content, Salesforce (CRM) announced yesterday that it is moving into streaming media with Salesforce+. The CRM giant has already created some of the content, including live experiences, original series, podcasts, and features such as ‘The Inflection Point’, a collection of interviews with the CEO’s of Coca-Cola (KO), PayPal (PYPL), and Ford (F). Salesforce has just closed a $28 billion Slack acquisition, but the firm isn’t done spending cash just yet as this move will help it “reimagine how to succeed in the new digital-first world.” To begin, Salesforce said the service will be free and will not have external advertising but this might change once shareholders question the purpose of the massive marketing spend. Read more here.
2. The stats are in, the China Passenger Car Association (CPCA) just reported that Tesla (TSLA) sold 32,968 China-made vehicles in July. With 24,347 of these exported, local sales of China-made cars plunged 69% from June. In July, Tesla introduced a cheaper version of the Model Y and lowered the price for Model 3 sedans but this wasn’t enough to drive sales as it still faces heightened scrutiny from regulators and increasing home-grown competition. For example, local rival BYD sold 50,387 EV’s last month in China. In the first month of a new quarter, Tesla usually sells less vehicles, so it will need to deliver higher sales for the rest of Q3 to prove to shareholders its China domination plan is still on track. More here.
3. Topping Wall Street’s estimates, Coinbase (COIN) shares jumped after the crypto exchange platform reported stellar results. Despite a volatile period for digital currencies, Coinbase posted revenue of $2.23 billion of which $1.8 billion was retail transaction sales, up 26% from Q1. During the quarter, Bitcoin fell around 41% but the company still managed to bring in $1.6 billion in net income, up 4,900% from a year earlier. As the company diversifies into Ethereum and other coins, it seems its over reliance on Bitcoin is fading. Only 24% of Coinbase’s total trading volume came from Bitcoin in Q2, down from 39% in the previous quarter. Since its direct listing back in April, Coinbase shares have fallen over 21%. Read the full press release here.
One more earning from last night:
The gunshot locator company missed analysts' estimates yesterday, reporting a quarterly loss of $0.02 per share on revenue of $14.62 million, up 30% YoY, helped by ShotSpotter expanding into two new cities in Q2. CEO Ralph Clark stated: “We believe our ongoing success landing new customers and expanding with existing customers demonstrates the effectiveness of our end-to-end Precision Policing Platform and the positive impact it has on reducing gun violence and keeping communities safe.” See the full press release here.
There are two companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.