Monday’s Headlines: Amazon’s Delivery Service Experiencing Major Delays
1. Ulta Beauty beat third-quarter profit estimates on Thursday, driven by sales of higher-margin cosmetics products, sending the retailer’s shares up nearly 13% during midday trading Friday. In the latest quarter, Ulta reported a net income of $129.75 million, or $2.25 per share, compared with earnings of $131.17 million, or $2.18 per share, in the same quarter last year. Analysts expected the company to earn $2.13 per share. Ulta narrowed its full-year earnings outlook to a range of $11.93 to $12.03 per share from its previous forecast of $11.86 to $12.06 per share. Get the full earnings report here.
2. Amazon’s massive delivery infrastructure is experiencing some hiccups as the holiday shopping season continues. The company said that it is experiencing shipping delays as it faces high demand and winter storms this holiday season. The delays come after Amazon started offering one-day delivery on items for Prime members. The company has spent at least $800 million this year to expand the program. This holiday season is the first year that Amazon will take on the busy months without one of its major delivery partners, FedEx. Read the full story here.
3. Tesla’s stock price was up nearly 2% by market close Friday after CEO Elon Musk was found not liable for defamation in a Los Angeles federal court. A British cave explorer, Vernon Unsworth, brought the suit against Musk in September 2018, after the Tesla and SpaceX CEO had called him “sus” (suspicious) and a “pedo guy” on Twitter. The verdict could set a precedent where free speech online, libel and slander are concerned. Vernon Unsworth vs. Elon Musk was one of the first major defamation lawsuits brought by a private individual over a tweet to ever go to trial. Catch the complete story here.