Wednesday’s Headlines: Toast Bumps IPO Price Target

Wednesday’s Headlines: Toast Bumps IPO Price Target

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Upstart Holdings (UPST) +9.3%

The Trade Desk (TTD) +3.5%

Twitter (TWTR) +3.0%

Bumble (BMBL) +2.5%

Cloudflare (NET) +2.5%

Moving Down ⬇️

DraftKings (DKNG) -7.4%

Walt Disney Co. (DIS) -4.2%

Activision Blizzard (ATVI) -4.1%

Wynn Resorts (WYNN) -4.1% (BILL) -3.4%

1. Ahead of Toast’s IPO today, the company has increased the price of its shares to $40. The restaurant-tech vendor had predicted to sell shares at $34 to $36 a piece, but with this new target, the company is now valued at $20 billion. Trading under the ticker symbol ‘TOST’ on the New York Stock Exchange later today, the debut comes after the company has had a turbulent year. Thanks to the pandemic, Toast’s sales sank 80% during this time as restaurants closed. However, just like other hospitality industry-focused tech firms like Airbnb (ABNB), the rebound was much stronger than expected. In Q2, Toast’s revenue surged 118% year-over-year (YoY), and it now services 48,000 restaurants, both of which have got investors excited about its debut today. See more on the story here.

2. Disney {DIS) shares tumbled yesterday after CEO, Bob Chapek, warned that he projects lower Q4 subscriber growth than previously estimated. Speaking at the virtual Goldman Sachs Communacopia Conference, Chapek said the company’s streaming service growth has “hit some headwinds” due the pandemic. The boss said COVID-19-related suspension of the India Premier League, whose games air on Disney’s Hotstar, and production delays from the Delta variant will negatively impact subscriber growth in the final quarter of the year. The House of Mouse expects to add “low single-digit millions” while analysts were hoping for 13 million in Q4. While it may not be the fairytale shareholders wanted to hear, Chapek is still confident in Disney’s long-term growth outlook as these factors should ease post-pandemic. Read more here.

3. Stitch Fix (SFIX) shares jumped 14% in extended trading yesterday off the back of an impressive earnings report. The digital personal styling service reported earnings per share of $0.19 on sales of $571.2 million, up 29% year-over-year, which both smashed estimates. Stitch Fix stated that it had 4.2 million active clients in the quarter, up 18% from the year-ago period, while net revenue per customer reached $505, surpassing the $500 mark for the first time. It also recorded its lowest ever churn rate, proving that customers are happy with the service. New CEO Elizabeth Spaulding also spoke about Stitch Fix’s recently added direct-to-buy option, “Freestyle,” which she said is showing early signs of positively impacting revenue per client. See the full press release here

One more earning from last night: 

FedEx (FDX)
A labor shortage hurt the parcel shipping giant’s quarterly profit in its latest earnings report, with the company posting adjusted earnings per share of $4.37 on $22 billion in sales, which missed estimates. Despite its challenges, CEO, Frederick W. Smith, was still confident on the call, explaining: “The execution of our strategies continues to drive higher demand for our services." See the full press release here

There is one company on the MyWallSt shortlist that will report earnings today:

Vail Resorts (MTN)

Get this week’s full earnings calendar here


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