Wednesday’s Headlines: Shopify And TikTok Buddy Up
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Nautilus (NLS) +8.3%
Upstart Holdings (UPST) +8.1%
Baozun (BZUN) +8.1%
Wynn Resorts (WYNN) +7.0%
Moving Down ⬇️
ShotSpotter (SSTI) -2.1%
Calavo Growers (CVGW) -2.0%
Prologis Inc. (PLD) -2.0%
American Tower (AMT) -1.4%
Sea Limited (SE) -1.0%
1. Over in the land of e-commerce, TikTok is expanding its partnership with Shopify (SHOP) and piloting a test of TikTok Shopping with the e-commerce leader. Last October, the viral social media app introduced new tools that allowed Shopify merchants to run TikTok marketing campaigns directly from their Shopify dashboard. However, this expanded deal steps things up by allowing sellers to add a new ‘Shopping’ tab to their profiles so they can create mini-storefronts within the social app. President of Shopify, Harley Finkelstein, explained: “By enabling new in-app shopping experiences and product discovery on TikTok for the first time, Shopify is powering the creator economy on one of the fastest-growing social and entertainment platforms in the world.” Read the full story here.
2. Microsoft (MSFT) hit the headlines again on Tuesday after confirming that it will be bringing its cloud gaming service to Xbox consoles this holiday season. The company is now betting big that its Xbox Cloud Gaming will play a key role in the future of video games outside consoles, where subscription services and software will become more important. At the moment, Xbox Cloud Gaming is only available on mobile and PCs, but Microsoft also wants to bring it to its Xbox consoles and even TVs through its own dedicated streaming dongles. Tech giant rivals Amazon (AMZN), Apple (AAPL), and Google (GOOG) are all working on similar projects in the $180 billion video game industry, however, investors are keen to see if gaming will remain as popular post-pandemic. See more here.
3. Despite posting an earnings beat and raising guidance for the full-year, Nordstrom (JWN) shares fell yesterday as its sales figures still came in below 2019 levels. The luxury department store chain reported earnings of $0.49 per share on revenue of $3.6 billion. Sales more than doubled year-over-year (YoY), but on a two-year basis (pre-pandemic), the retailer’s revenue was down 6%. Nordstrom remained confident on the call and raised its outlook for 2021, following competitors Macy's (M) and Kohl's (KSS), and now expects revenue to increase 35%, up from 25% it previously stated. President Pete Nordstrom added: “A compelling merchandise assortment, combined with new and differentiated services and experiences, contributed to strengthening customer engagement and improving financial results during our Anniversary Sale.” See the full press release here.
Some more earnings from last night:
Despite ongoing travel challenges, the Chinese hotel group managed to post Q2 net income of $59 million after Huazhu reported a loss in the same period a year earlier. Hotel turnover increased over 97% YoY leading to revenue of $556 million, up 83% YoY, and looking ahead, CEO, Ji Qi, has “high confidence in China’s future economic growth.” See the full press release here.
Shares in the financial software leader jumped after reporting an earnings beat yesterday, with revenue of $2.6 billion, up 41% YoY, boosted by strength in its ‘Online Ecosystem’ sales which grew 30% YoY. CEO of Intuit, Sasan Goodarzi, explained: “Our momentum continues across the company with accelerated innovation focused on our customers' most important needs while creating durable growth opportunities for Intuit in the future." Read the entire report here.
There are four companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.