Wednesday’s Headlines: Microsoft’s Next Big Release
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Baozun (BZUN) +9.7%
Trip.com Group (TCOM) +6.6%
Upstart Holdings (UPST) +6.3%
ShotSpotter (SSTI) +2.8%
Moving Down ⬇️
Zoom Communications (ZM) -16.7%
StoneCo (STNE) -6.0%
Trupanion (TRUP) -4.1%
Under Armour (UAA) -4.1%
Lululemon (LULU) -3.5%
1. Microsoft (MSFT) announced yesterday that its next big update, and big money maker, Windows 11, will drop in October. It’s the tech giant's first major operating update in six years, the longest period between releases in the company’s history. Windows is an integral part of its revenue, delivering $6.6 billion in sales in Q4, making up 14% of the software company’s total revenue. Therefore, a successful release of the update could further boost its reputation as the leader in the industry whilst benefiting its other businesses, including Azure and Office. Read more on the story here.
2. On Tuesday, the stock market rally paused over lingering concerns around the pandemic but still ended the month on a high. While the Dow Jones (DIA), S&P 500 (VOO), and Nasdaq (QQQ) all traded in the red yesterday, August still marked the seventh consecutive month of gains at just below all-time highs. Stocks were also put under pressure yesterday by a weaker-than-expected ISM-Chicago Business Survey report, which stated that economic activity slowed in August as prices jumped and demand waned. However, after Friday’s Fed announcement suggested that the central bank is in no rush to hike interest rates, and inflation is still looking steady, this pause might not last long. See more on the story here.
3. It looks like financial software company, Intuit (INTU), might be breaking out into the email marketing space. According to reports, the company is in talks to buy Mailchimp for over $10 billion. Intuit, the maker of TurboTax and QuickBooks, has offered accounting software services to clients for decades but this deal could potentially unite the two to offer small businesses complete financial and email marketing packages. Mailchimp, which made around $300 million in revenue in 2020, is prepared to offer a minority stake in its business. If the deal goes through, it would be Intuit’s largest-ever purchase and shows investors that it is in expansion and acquisition mode. Check out the full story here.
One earning from last night:
The online vehicle auctioneer had a good quarter, posting revenue growth of over 33% year-over-year to $733.9 million whilst net income jumped 94% from the same period last year. Drivers being put off using public transport due to rising COVID-19 cases helped Copart report earnings growth of 87.9% YoY. Read the full press release here.
There are four companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.