Friday’s Headlines: Virgin Galactic Gets Grounded

Friday’s Headlines: Virgin Galactic Gets Grounded

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

nCino (NCNO) +15.0%

Spotify (SPOT) +6.6%

Match Group (MTCH) +6.1%

Upstart Holdings (UPST) +5.7%

Bumble (BMBL) +4.4%

Moving Down ⬇️

ShotSpotter (SSTI) -6.8%

Stitch Fix (SFIX) -6.7%

StoneCo (STNE) -6.7%

Roku Inc. (ROKU) -5.9%

Veeva Systems (VEEV) -5.4%

1. It’s been a tough six months for Virgin Galactic (SPCE), which has seen its share price drop 19% in that time. Yesterday, things looked to be going well as its stock price soared following confirmation that it is launching its first commercial research mission named “Unity 23”, along with the Italian Air Force, to the edge of space. However, its stock then closed the day in the red after the U.S. Federal Aviation Administration grounded all Virgin Galactic flights pending a safety investigation. The review in question will look into why Virgin Galactic’s first manned flight on July 11 flew outside of the area for which it was cleared. Read more here

2. Shares in Netflix (NFLX), Spotify (SPOT), and Match Group (MTCH) soared yesterday following news that Apple’s (AAPL) latest App Store changes could boost their revenues. On Wednesday, Apple confirmed that it will be relaxing rules against apps on its store from linking out to external websites for subscription, which will allow these firms to bypass the Big Tech giant’s 30% cut of all sales from the App Store. Spotify has long been outspoken about Apple’s monopoly over its own devices, with the App Store being a business’s only means of downloading to an iOS device. Despite some concerns remaining for Spotify, which believes that Apple still needs to do more, the move is believed to be a step in the right direction. Read more here

3. Shares in Ford (F) fell on Thursday following a disappointing August sales report, which showed further semiconductor chip shortages. The famous old automaker saw sales plummet a whopping 33.1% from the same period last year to an adjusted selling rate of 13.09 million vehicles. The sales pace for any given month is a widely used industry metric that measures how many cars the industry would sell for the year if it sold the same amount every month. Actual U.S. sales figures saw Ford’s total sales top 124,176 vehicles. Continued semiconductor chip shortages and economic uncertainty will likely continue to plague Ford and the industry throughout the year. Read the official press release here

Some more earnings from last night:

DocuSign (DOCU)
The tale of the tape for the e-signature leader was yet another earnings beat on revenue of $511.8 million and total customers crossing the million mark for the first time — but investors were disappointed by Q3’s outlook. Like many other work-from-home winners, DocuSign is suffering as a consequence of its own 2020 success, with investors expecting the outsized growth of last year to continue, then sending its stock down when it doesn’t maintain such high levels of growth. Read more here

Duluth (DLTH) 
Despite a rocky performance of late, it was a strong Q2 from the retailer which beat on revenue of $13.1 million (up 33.7% YoY) and EPS of $0.27. Less than five months into the new role, CEO Sam Sato was confident: “I am very impressed with the depth of talent, level of commitment and excitement this team brings day in and day out.” Read more here.  

PagerDuty (PD)
Shares in the cloud computing company are soaring after-hours following a strong earnings beat which saw revenue increase 33% YoY to $68 million. “Our solid topline beat was driven by accelerating demand for both our new Automation offering and our comprehensive Digital Operations plan, especially in the enterprise and mid-market segments,” said CEO Jennifer Tejada. Read more here

Yext (YEXT)
Brand management firm Yext is plummeting after hours following an earnings beat that was on the lower end of expectations — revenue jumped 11% YoY to $98 million while customer count was up 23% to over 2,600. Founder and CEO Howard Lerman was bullish though, stating: “We had a solid second quarter, driven by new customers and upsells. Yext continues to be a critical partner for businesses by driving operational efficiencies, especially within marketing and support.” Read more here.

Get this week’s full earnings calendar here.

JamieJamie

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