Stitch Fix Skyrockets 16%

Stitch Fix Skyrockets 16%

Happy Friday folks! 

This week, Wall Street witnessed the worst day for the stock market in months. Amid speculation that China’s real estate industry is slowing and a potential credit crisis over the situation with Evergrande, global markets suffered. However, some analysts believe the September stock market slump might be over already as there has been signs of recovery for many of the companies on our shortlist.  

For more insight into how the latest development from China could affect your portfolio, check out our article: ‘What's Going on With Evergrande?’

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

Moving Up ⬆️

Stitch Fix (SFIX) +16.2%

Upstart Holdings (UPST) +10.9%

Twitter (TWTR) +6.8%

Salesforce (CRM) +6.7%

Booking Holdings (BKNG) +6.5%

Moving Down ⬇️

DraftKings (DKNG) -14.3%

FedEx (FDX) -10.3%

Peloton Interactive (PTON) -8.7%

Nautilus (NLS) -6.5%

Activision Blizzard (ATVI) -6.1%

What investors need to know 

Stitch Fix (SFIX) +16.2% 

Shareholders rallied behind Stitch Fix this week after it topped Wall Street’s estimates in Q2, reporting sales growth of 29% year-over-year (YoY) to $571.2 million. What really had investors flocking to the stock is CEO Elizabeth Spaulding’s plans to make its services more accessible. Known for offering a subscription-only service model, Stitch Fix has launched its direct-buy option, Freestyle. This allows shoppers to instantly buy clothes that have been carefully curated for them without needing to subscribe to Stitch Fix first. After another successful quarter proving that its services are popular, with 4.2 million active clients enjoying their products in Q2, shareholders are starting to realize how lucrative the larger market opportunity could be. 

Upstart Holdings (UPST) +10.9%

The fintech leader’s stock reached an all-time high this week following increased momentum in high-growth stocks across the wider market, as well as company-related news driving bullish sentiment. On Tuesday, WSFS Bank, the longest-standing local bank in Delaware, launched a personal loan platform powered by Upstart's lending technology. While Upstart doesn't lend money, it helps banks facilitate loans, so this move could boost the company's growth as it proves the effectiveness of its tech. It also offers Upstart the opportunity to roll out similar tech to other banks. With the global digital banking sector expected to reach $10.9 billion by 2027, there is a massive opportunity for Upstart to become the leading tech for this disruption. 

Twitter (TWTR) +6.8%

Twitter’s Clubhouse rival, Spaces, just got a new update. On Thursday, the micro-blogging site provided a peek at its in-development Spaces recording feature. The update will give users a new level of functionality in the audio social tool by offering a ‘Record Space’ toggle. This would allow Spaces hosts to download an audio file to edit and re-use the recording beyond the original broadcast itself. While Twitter already enables hosts to download their past broadcasts, the new process is less clunky and gives users ways to repurpose their recordings. This improvement could provide more opportunities for monetization, sponsorship, and audience growth, all of which means more revenue, which is great news for investors. In other exciting news, Twitter also introduced Bitcoin tipping to the platform too. 

DraftKings (DKNG) -14.3%

The sports betting stock got hammered this week after investors heard about its intention to buy UK betting company Entain for $20 billion. However, as Wall Street debated the large bid, retail investors took advantage of the dip and dove into DraftKings stock, buying $55 million worth of shares this week. Despite the wavering opinion on the potential buy, Cathy Wood’s Ark Investment Management also purchased 770,000 additional shares. However, the dip-buying was still not enough to boost the stock overall. While acquiring a company just to get its hands on Entain’s clients is not always the best logic, this one might help it break into the UK market and put its services in front of a new audience. 

FedEx (FDX) -10.3%

Labor shortages are majorly affecting the parcel delivery giant, evidenced by its disappointing earnings report this week. FedEx incurred high hiring and delivery costs due to the shortage of staff, resulting in a $450 million year-over-year increase in expenditure, which severely impacted its earnings. During the quarter, FedEx spent $250 million on using more third-party transportation, asset repositioning, and recruiting drives, while the other $200 million was spent on higher wages. Many expect that FedEx will resolve its hiring issues as restrictions ease so these issues should only be short-term for the company. 

NicoleNicole

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