Why Is Pure Storage Up 22%?

Why Is Pure Storage Up 22%?

Happy Friday folks! 

As you can see from the below list, businesses in tech, fitness, leisure, and even gambling got a nice boost this week. Earnings, the economic reopening, and Cathy Wood all played a crucial part in sending these stocks flying. As an investor, it’s great to see some variance in the biggest movers list. 

A key element to investing success is a diversified portfolio, as I’m sure you’ve heard us harp on and on about. But did you know that having curiosity for the world around you can help you with your investment journey? We discuss this in our latest Daily Insight: “The Trough of Disillusionment”, so be sure to give it a read. 

Here were the biggest movers in the MyWallSt shortlist this week:

Moving Up ⬆️

Baozun (BZUN) +25.7%

Pure Storage (PSTG) +21.6%

Planet Fitness (PLNT) +14.1%

Wynn Resorts (WYNN) +12.8%

DraftKings (DKNG) +11.2%

Moving Down ⬇️

Nordstrom (JWN) -18.8%

Hain Celestial (HAIN) -9.8%

Autodesk (ADSK) -7.2%

Calavo Growers (CVGW) -5.9%

Prologis Inc. (PLD) -2.7%

What investors need to know 

Pure Storage (PSTG) +21.6%

The enterprise storage provider saw its stock rally this week after it gave shareholders a peek into its financial books. Pure Storage posted better-than-expected results for the second quarter, with revenue jumping 23% year-over-year thanks to its subscription sales rising 31%. Notching its highest Q2 operating profit in the company’s history, investors were delighted to see strength in Pure Storage’s innovative products and continued sales momentum. This upward trend encouraged the firm to boost its guidance for the next quarter, now expecting Q3 revenues of $530 million, well above Wall Street’s estimates of $495 million.  

Planet Fitness (PLNT) +14.1%

The saying “one man's loss is another man's gain” has proved particularly true for Planet Fitness lately as it continues to benefit from growing market share in the fitness centre space. During the COVID-19 emergency, many gyms in the U.S. were forced to close their doors which meant that Planet Fitness was able to capture more market share by simply staying in business. The New Hampshire-based company managed to survive the worst of the lockdown, with 4,000 of its locations and 98% of its gyms open by the end of the second quarter. In addition, its membership and revenue growth is continuing to thrive, adding to bullish sentiment over the stock. 

DraftKings (DKNG) +11.2%

Ark Invest snapping up shares in the online betting company sent the stock soaring this week. Cathie Wood's fund increased its already sizable stake in the gambling company across three of its exchange-traded funds (ETFs). Scooping up over 1 million shares in DraftKings, Wood split them across ARK Innovation ETF, ARK Fintech Innovation ETF, and ARK Next Generation Internet ETF. Her investment management company now holds a staggering $846 million worth of DraftKings stock. The movement in its share price proves yet again that when Cathy Wook backs a stock, investors sit up and listen. 

Nordstrom (JWN) -18.8%

Despite posting an earnings beat and raising its full-year guidance, Nordstrom shares fell this week. The luxury department store chain posted revenue of $3.6 billion, which more than doubled YoY, but on a two-year basis (pre-pandemic), the retailer’s revenue was down 6%. Investors are focusing on comparing the luxury department store’s sales to 2019 levels, which may be unfair considering external factors — such as rising Delta variant cases — are putting consumers off in-store shopping. However, Nordstrom remains confident that the company has a bright future, raising its revenue outlook for 2021 by 35%, up from the 25% it previously stated. 

Autodesk (ADSK) -7.2%

The software giant’s shares tanked 10% on Thursday after it barely met analysts estimates. Despite posting revenue growth of 16% YoY to $1.06 billion, guidance for Q3 fell short of expectations. A warning of a slowdown in growth has been a common theme for tech companies recently, with many expectating that the hyper-growth they enjoyed during the pandemic is going to die down as the economy reopens. Autodesk has faith that its new product lines, and improving subscription rate will continue to drive results though, so investors should not be too concerned about its muted outlook as the company now has the opportunity for an earnings surprise in the Q3.

NicoleNicole

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