Why Is nCino Up 16%?

Why Is nCino Up 16%?

Happy Friday folks! 

Outside of earnings releases impacting this week's stock prices, Apple’s latest App Store changes and climbing vaccination numbers are boosting some of the companies on our shortlist. 

We discuss Apple’s latest attempts to balance the act of pleasing its shareholders and the law in our recent Daily Insight: Has Apple Folded?

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

Moving Up ⬆️

nCino (NCNO) +16.9%

Spotify (SPOT) +12.4%

Trip.com Group (TCOM) +9.9%

Pure Storage (PSTG) +8.5%

Huazhu Hotels Group (HTHT) +8.2%

Moving Down ⬇️

StoneCo (STNE) -13.6%

Zoom Communications (ZM) -13.4%

Autodesk (ADSK) -8.9%

ShotSpotter (SSTI) -8.0%

Stitch Fix (SFIX) -7.0%

What investors need to know 

nCino (NCNO) +16.9% 

Solid earnings plus a positive forecast for the rest of the year resulted in nCino’s share price flying this week. The North Carolina-based company continues to report strong free cash flow — more than $12 million in the last quarter, totaling $19 million so far for the year. This has excited investors because these funds are now being funneled back into sales and marketing strategies, which will boost future revenues. Founded in 2012, nCino is still very much in growth mode, and this solid cash flow is a bullish sign of healthy finances — something we love to see in our long-term investments. 

Spotify (SPOT) +12.4%

The stock bounced after Apple announced that it would relax App Store rules which the music streamer has previously stated had majorly hurt its business. On Wednesday, Apple announced that subscription apps like Spotify, Netflix, and Match Group can now provide an external link out to their websites in their apps to sign up for a subscription. This move allows app developers to bypass Apple’s expensive 30% cut that it takes from these companies' sales. The news is likely to improve Spotify’s margins on subscriptions from iPhone fans and will help it convert potential customers to subscribers without the need for ceding billing and other support from Apple.

Trip.com Group (TCOM) +9.9%

Travel stocks continued their rally this week, fueled by growing optimism over a reopened economy and a return to normal vacationing levels. Wall Street is growing bullish over these companies after last week’s U.S. Food and Drug Administration approval of the Pfizer vaccine. This nod from the FDA has resulted in more citizens opting to get the jab, with vaccination rates soaring in recent weeks up to nearly 900,000 per day in the U.S. As more people book flights with their fully-jabbed status, Trip.com is expected to get a nice bump in sales and its share price.  

StoneCo (STNE) -13.6%

Despite an earnings beat, the company failed to keep investors happy as shareholders focused on the issue of StoneCo having to ​temporarily halt the extending of credit. Sales were also down 8.1% year-over-year (YoY) and CEO, Thiago Piau, explained that while it saw strong underlying growth, figures were hurt by “a challenging short-term scenario in our credit product, which was strongly affected by industry problems.” However, if we look on the bright side, the number of businesses using its platform rose above the 1 million mark, and total payment volume more than doubled in Q2 compared to the year prior. 

Zoom Communications (ZM) -13.4%

It was a similar tale for the video conferencing software company. Zoom also reported growth in its business but still managed to see its stock price fall as investors were hoping for bigger numbers. While revenue was up 54% YoY, reaching $1 billion for the first time, shareholders compared these figures to the hyper-growth Zoom enjoyed last year, when sales jumped 191%. For the next quarter, Zoom guided for only 31% growth, which has also concerned investors. These short-term outlooks should not worry you too much though as remote working and hybrid models are going to remain popular, which is great news for the stock. 

NicoleNicole

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