Friday’s Headlines: Tesla’s Texas Power Play
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Pure Storage (PSTG) +13.8%
Etsy (ETSY) +5.1%
Baozun (BZUN) +2.9%
Salesforce (CRM) +2.7%
Pinterest (PINS) +1.9%
Moving Down ⬇️
Autodesk (ADSK) -9.4%
Hain Celestial (HAIN) -9.1%
Nordstrom (JWN) -8.4%
StoneCo (STNE) -4.7%
Trupanion (TRUP) -4.3%
1. On Thursday, Tesla (TSLA) announced that it has officially filed to become an electricity provider in Texas. The news comes as the EV maker starts to expand its battery build in the state, where it plans to connect a 100-megawatt energy storage system to the grid. While Tesla has already built several utility-scale energy storage systems in many parts of the world, including Los Angeles and Australia, it hasn’t functioned as a retail electricity provider in these places yet. If the filing is approved, Tesla Energy Ventures plans to use employees from its energy division, the one that sells solar rooftops, to drum up sales for the new business. Read the full story here.
2. On the earnings front, Peloton (PTON) shares fell yesterday after the cycle maker reported disappointing earnings and muted guidance for Q4. While Peloton reported revenue growth of 54% to $936.9 million, up from the $607.1 million it posted a year earlier, this wasn’t enough to keep shareholders happy. For the fourth quarter, Peloton explained its loss widened to $313.2 million as a result of slow sales growth and mounting costs associated with recalling some of its treadmills due to safety concerns. Shareholders were also unhappy with the company's expectation that future earnings may be hurt due to it slashing the price of its original bike by around 20%. See the full press release here.
3. In contrast to Peloton, Workday (WDAY) saw its shares jump after posting better-than-expected results for Q2. The cloud-based provider reported revenue of $1.26 billion, up 18% from a year ago, which was boosted by subscription sales growth of 20%. On the call, Workday also confirmed that its customer community now includes over 50% of the Fortune 500 list, of which, around 90% are live on its products, and includes an expanded deal with tech giant Google (GOOG). CEO of Workday, Aneel Bhusri, was very confident, stating: “This quarter was one of our strongest in company history. Our customer community has grown to more than 55 million users and more than half of the Fortune 500 have selected Workday.” See the full press release here.
Some more earnings from last night:
The highlight for the software company was that it processed $41.7 billion in payments for its customers in Q4, up 64% year-over-year (YoY), fueling revenue growth of 86% to $78.3 million. John Rettig, Bill.com CFO, added to bullish sentiment by saying that through the strength of its business and recent acquisitions: “We are pursuing a large, global opportunity to help millions of small businesses digitally transform their financial operations.” Read the full report here.
Hain Celestial (HAIN)
Both the company’s earnings and revenue results fell short of estimates yesterday, with quarterly earnings coming in at $0.39 per share on sales of $450.7 million, down compared to year-ago revenues of $511.75 million. On a more positive note, net income of $40.5 million improved dramatically, jumping from $3.7 million YoY. Read the full report here.