Friday's Headlines: WeWork Finally Makes Its Market Debut

Friday's Headlines: WeWork Finally Makes Its Market Debut

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

Moving Up ⬆️

Trupanion (TRUP) +20.4%

Nautilus (NLS) +19.8%

Pinterest (PINS) +16.5%

LoveSac (LOVE) +12.1%

Peloton Interactive (PTON) +11.4%

Moving Down ⬇️

PayPal (PYPL) -9.4%

Upstart Holdings (UPST) -9.1%

Tripadvisor (TRIP) -8.7%

Ulta Beauty (ULTA) -8.3%

Booking Holdings (BKNG) -5.0%

1. More than two years on from its infamous IPO collapse, WeWork (WE) has finally gone public — albeit via the more roundabout SPAC process. Its merger with special purpose acquisition company,  BowX Acquisition Corp, has gotten off to a smooth start too, with shares in the commercial real estate lender soaring 13.49% upon its market debut yesterday. Following years of scandal and escalating debt, what seemed like a tale destined for an unhappy ending may well become one of the turnaround stories of the — admittedly young — decade. As of market close last night, WeWork’s share price sits at $11.78, giving it an estimated value of $9.34 billion. Read more about the company’s comeback here.

2. Google (GOOG) is slashing its Play Store service fees in half for 99% of apps. For new developers, they will pay a 15% service fee from the get-go, marked down from 30% previously. The 15% rate applies to subscription services apps, which saw Match Group (MTCH) and Bumble (BMBL) jump 10%, and 7% yesterday, respectively. Google shares remained flat yesterday on the news but this could drive an influx of subscription-based apps as its closest competitor Apple still charges a 30% rate. Google has also said certain audio, music, and streaming content providers’ fees could be as low as 10% on the new model, which could drive even more new traffic its way. Read the full article here.

3. Following a rough couple of years for the food industry, Chipotle (CMG) posted an impressive earnings beat on Thursday. The restaurant chain posted adjusted earnings per share (EPS) of $7.02, comfortably beating the expected $6.32. Revenue also outpaced expectations, coming in at $1.95 billion versus an anticipated $1.94 billion. Chipotles’s menu prices were hiked by 4% in June to offset rising costs, and yet net sales increased by 21.9%, while digital sales tripled from the year-ago quarter. Recent staffing shortages are cause for concern, but according to CFO Jack Hartung, “Despite these challenges we remain confident in our ability to drive restaurant margins higher as our average unit volumes increase.” Read more here.

JamieJamie

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