The Big Shake-up

The Big Shake-up

Happy Friday folks! 

Our team of analysts has their heads buried in sky-high stacks of earnings reports, which might have something to do with this week’s movers and shakers. But there’s no time to dawdle, so let’s take a look at why MyWallSt’s biggest winners (and some losers) are where they are.

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

Moving Up ⬆️

Tesla Motors (TSLA) +18.4%

Spotify (SPOT) +14.2%

Teladoc (TDOC) +8.3%

Hasbro (HAS) +7.9%

Align Technology (ALGN) +7.0%

Moving Down ⬇️

Pinterest (PINS) -21.4%

Twilio (TWLO) -20.5%

Twitter (TWTR) -12.8%

Zendesk (ZEN) -12.0%

Baozun (BZUN) -8.3%

 

What investors need to know 

Moving up

Tesla Motors (TSLA)

It could be some time before we stop seeing the famous electric vehicle maker in our top movers. Tesla scorched past the $1 trillion valuation mark this week and hasn’t slowed down since, prompted onward by its army of unwavering fans — and a potentially multi-billion-dollar order. On the latter, investors were delighted to see the car rental giant, Hertz, place an order for 100,000 vehicles to be delivered within the year, accumulating to roughly $4 billion in sales — the largest EV order ever. Tesla can kick off from here to approach new deals with optimism, and with its new gigafactories in Berlin and Texas underway, problems meeting demand could be a thing of the past. 

Spotify (SPOT)

The leading podcast platform in the U.S. really found its rhythm this week after reporting on a blowout third quarter. With monthly active users (MAUs) soaring 19% to 381 million, including 172 million premium subscribers, things are certainly on the up. But what had investors really excited was the company’s soaring ad-supported revenue, which jumped 75% during the quarter to $375 million. For investors and Spotify alike, this jump is evidence that ads can be a huge revenue driver for the business It also allows it to continue investing in its winning podcast acquisition strategy, which has proven invaluable to drawing in users. 

Teladoc (TDOC) 

What else but earnings? However, there’s definitely been some discord across the fintwit-sphere as to whether Teladoc’s Q3 earnings were good or not. While many celebrated revenue growth of 81% year-over-year to $522 million, others lamented the $84.3 million loss during the quarter, as well as a lack of raised guidance. Clearly, the bulls have won out though, with many citing the company’s upcoming deal with Health Care Service Corporation (HCSC) as a major boon. The lucrative deal, which will come into effect next year, comes as part of Teladoc’s merger with Livongo and could be the start of a major pay-off for investors who had previously been worried about the deal.

Moving down

Pinterest (PINS)

In the words of Michael Scott: “Oh how the turn tables…” Having seen its stock soar last week off the back of PayPal (PYPL) takeover rumors, this week has been a sorry affair. PayPal officially shut down the rumor mill on Sunday night, followed by influential ARK Invest head, Cathie Wood, selling off 336,000 shares on Monday as a result. Pinterest investors appear to have had enough, and many are expressing concerns as to why the company didn’t dispel the PayPal rumors in the first place, and what is behind management’s thought process if the company did wish to be sold? Pinterest is on thin ice with investors, who will be hoping to hear more than excuses at its upcoming Q3 earnings call on November 4.

Twitter (TWTR) 

Things were looking good for Twitter following its Q3 earnings report on Tuesday — and then it all went south. Despite revenue in the third quarter increasing 37% from a year earlier to $1.28 billion,  Twitter said total monetizable daily users (mDAUs) increased 13% to 211 million, falling shy of the 211.9 million that analysts were expecting. But that wasn’t the worst of it, with investors taking particular aim at Apple’s iOS 14.5 privacy update and the impact it could have on Twitter going forward. With the social media company aiming to increase its total mDAUs to 315 million, and revenue to $7.5 billion by the end of 2023, it still has a long way to go to achieve this.

JamieJamie

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