Wednesday’s Headlines: Will Video Be A Success For Microsoft?
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Match Group (MTCH) +7.5%
Upstart Holdings (UPST) +6.2%
Wynn Resorts (WYNN) +5.6%
DraftKings (DKNG) +4.2%
Moving Down ⬇️
Trupanion (TRUP) -7.0%
DocuSign (DOCU) -6.0%
Chegg (CHGG) -5.5%
The Trade Desk (TTD) -3.7%
Bumble (BMBL) -3.6%
1. In a bid to boost its productivity software offerings, Microsoft (MSFT) went shopping and acquired Clipchamp, a software start-up that customers can use to edit videos. While Clipchamp offers a Windows app, part of its main pull is the company’s ability to draw on online computing resources. In July, Clipchamp stated that it had 17 million users and was being used by over 390,000 companies, including Deloitte, Google (GOOG), and Zendesk (ZEN). Microsoft has previously expressed an interest in video, having participated in discussions last year to buy TikTok’s U.S. operations so the Clipchamp acquisition will allow the tech giant to move that bit further into the popular video space. Read the full story here.
2. Amazon (AMZN) is testing its grab-and-go system in two of its Whole Foods stores, which will be the service’s first time functioning in a full-size supermarket. The “Just Walk Out” technology is coming to the shops in 2022 in Washington and California. Shoppers can simply scan an app on their mobile device and exit without needing to stand in a checkout line as cameras and sensors will track what items individuals pick up. The Big Tech giant has already deployed its cashierless tech at several Fresh groceries and in its Go convenience stores. If successful, Amazon will have the opportunity to roll out similar technologies to stores across the U.S. and wider world. Check out the full story here.
3. On Tuesday, PayPal (PYPL) spoke of its intentions to acquire Japanese buy now, pay later (BNPL) firm Paidy for $2.7 billion. The deal will help the payment leader claim the top spot in the BNPL sector, which witnessed a pandemic-infused boom, fueled by stimulus checks. Competitor Square (SQ) agreed last month to purchase Afterpay which might have encouraged PayPal’s acquisition plans. The firm stated yesterday: “The acquisition will expand PayPal’s capabilities, distribution and relevance in the domestic payments market in Japan, the third largest ecommerce market in the world.” PayPal now has the opportunity to bring in additional revenue as the BNPL model charges merchants a fee to offer these point-of-sale loans which consumers repay in interest-free instalments. See more here.
Earnings from last night:
Casey's General Stores (CASY)
Smashing Wall Street’s estimates, the chain of convenience stores came out with quarterly earnings of $3.19 per share on sales of $3.18 billion, up from year-ago revenues of $2.11 billion, fueled by inside same-store sales increasing 8.0% compared to the prior year. Darren Rebelez, President and CEO of Casey’s, explained: “Total revenue was up across the board as guest traffic returned throughout the quarter.” See the full report here.
Coupa Software (COUP)
Amidst the company’s acquisition spree, Coupa shares are on the rise after posting earnings growth of 24% to $0.26 on record revenue of $179 million, up 42% year-over-year (YoY). CEO Rob Bernshteyn boasted: "We are proud to report another fantastic quarter where we delivered record revenue, strong calculated billings growth, and our third year of consecutive quarterly non-GAAP profitability." See the full report here.
Despite better-than-expected results, Smartsheet stock fell after it reported total revenue of $131.7 million, up 44% YoY, and a loss of $5.2 million. Revenue was driven mainly by subscription sales, which jumped 45% YoY while its professional services revenue also made a big leap, rising 40% YoY, boosted by massive expansions among its enterprise customers including Zoom (ZM), Gap, and Whirlpool. Read the full report here.
There are three companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.