Monday's Headlines: Microsoft Retakes The Crown

Monday's Headlines: Microsoft Retakes The Crown

Here were the biggest movers in the MyWallSt shortlist on Friday:

Moving Up ⬆️

Atlassian (TEAM) +9.8%

Cloudflare (NET) +5.8%

Zillow (Z) +5.1%

Lululemon (LULU) +5.1%

ShotSpotter (SSTI) +4.8%

Moving Down ⬇️

Zendesk (ZEN) -14.5%

Starbucks (SBUX) -6.3%

IMAX (IMAX) -6.2%

Roku Inc. (ROKU) -4.9%

Wix (WIX) -3.6%

1. Microsoft (MSFT) has taken Apple’s (AAPL) crown once more to become the world’s largest company. Microsoft last week blew earnings out of the water, fueled by its cloud revenue that came it at $17 billion, up  31% year-on-year (YoY), which surpassed all expectations. Hybrid work models and the adoption of available tech look to have benefited the company dramatically, with the expectation for the trend to continue. Apple, in comparison, missed expectations for the first time in over four years. It reported $83.36 billion in revenue v.s. $84.85 billion expected, which led to a 3% decline in the share price last week. More likely than not, however, it will be business soon for Apple as usual as chip shortage concerns reduce and it can meet the demand for its new product announcements in future quarters. Read more here.

2. Amazon (AMZN) has disclosed it owns a 20% stake in Rivian as things heat up in the EV market. The challenger company involved in EV pickups has also struck a deal with Amazon to deliver 100,000 electric vans by 2030, making the e-commerce giant a primary customer as well as an investor. Amazon’s network and order are sure to benefit Rivian as it begins to make deliveries, but it could also create an over-reliance on Amazon as it has just over 48,000 pre-orders for its pickups in comparison. This move by Amazon follows the acquisition of autonomous taxi company Zoox last year, as it pushes toward sustainability and electrification of its fleet. Read more here.

3. Facebook (FB) rebranding to Meta Platforms Inc. was last week's big story, as it set out to create the real “Ready Player One” universe and lead in the space. Criticism flowed in, suggesting avoidance of current brand issues was the real strategy, but Meta is diving in from the get-go. One such move is buying out the VR (virtual reality) fitness app 'Within', which creates an all-immersive fitness experience for users. The world combines Horizon Home, focusing on the VR equivalent for social events, and Horizon Work, the collaborative tool for business' employees working from home, but even gaming and buying virtual real estate will be featured too. Whether Meta acts on these plans is another thing, but it seems intent on hitting the ground running. Read more here.

There are 2 companies on the MyWallSt shortlist that will report earnings today:

Arista Networks (ANET)

Chegg (CHGG)

Get this week’s full earnings calendar here.

David GranahanDavid Granahan