Tuesday’s Headlines: Microsoft Notches A New Record
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Baozun (BZUN) +11.4%
IMAX (IMAX) +6.9%
Bumble (BMBL) +6.3%
Lemonade (LMND) +6.1%
Trupanion (TRUP) +6.1%
Moving Down ⬇️
Nautilus (NLS) -3.1%
Etsy (ETSY) -1.4%
Costco (COST) -0.9%
1. Investors poured into Microsoft (MSFT) shares yesterday after it announced plans to hike the prices of certain subscriptions of its flagship product, Office 365, next year. The stock reached a fresh record yesterday, closing at $304.65, as Wall Street realized how much extra revenue the price increase will bring in, highlighting Microsoft’s long-term pricing power in the competitive space. The business software giant is planning to bump up its premium Office 365 E5 offering by 9% per month while its more affordable Office 365 E1 price will increase 25%. As the costs associated with providing these services are already factored into Microsoft’s operation costs, the boost in price has the potential to dramatically increase the company’s profitability. See more here.
2. U.S. stocks edged higher yesterday, boosted by reopening stocks as the Food and Drug Administration (FDA) announced the full approval for Pfizer’s COVID-19 vaccine. On Monday, the S&P 500 (VOO) jumped 0.8% led by energy, industrials, and technology, while the Nasdaq (QQQ) closed at a record high, climbing 1.5%. Major indexes rose as investors believe the nod from the FDA will result in more formal vaccine mandates from companies, which should speed up the economic reopening. Travel and leisure stocks also rallied in response to the news, with American Airlines (AAL) soaring 3.3% whilst IMAX (IMAX) gained 6.9% as investors look forward to a fully reopened global economy. Read more here.
3. Across the waters in China, officials offering more clarity on the position of the regulatory outlook for Chinese tech stocks resulted in a huge rally. U.S-listed Trip.com (TCOM) shares jumped over 4% yesterday while Tencent and Alibaba also notched big gains. Adding to bullish sentiment was also the stack of positive earnings releases from these companies. E-commerce leader, JD.com, bounced 13% after reporting Q2 earnings which smashed analysts estimates. Heightened scrutiny from Chinese regulators had previously spooked U.S. investors, resulting in a massive sell-off over the past few months, but things are now finally looking up. Check out the full story here.
There are three companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.