Tuesday’s Headlines: Zillow Set to Sell After Overstock Oversight
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Tesla Motors (TSLA) +8.5%
Upstart Holdings (UPST) +7.0%
Baozun (BZUN) +6.7%
iRobot (IRBT) +6.1%
Lemonade (LMND) +6.0%
Moving Down ⬇️
Zillow (Z) -6.3%
Google (GOOG) -3.0%
Etsy (ETSY) -2.8%
Intuit (INTU) -2.7%
ServiceNow (NOW) -2.3%
1. Zillow (Z) is reportedly looking to offload roughly 7,000, or $2.8 billion, worth of houses after finding itself overstocked. Last week, the U.S. iBuying giant was forced to pause further purchases of houses for the year in a move that saw investors sell shares in droves. A 10% tumble in stock price ensued as fear lingered around the companies future amidst an uncertain real estate market. Now, with news breaking that the company will have to sell houses at prices below what it paid for them, investors have begun to sell off the stock again. Zillow is down in pre-market trading today after falling 6% on Monday, and with earnings being announced tonight, investors will be eager to see how the company responds. Read more here.
2. Tesla (TSLA) has announced plans to open its Supercharger stations to other vehicles for the first time. In a landmark move, the electric-vehicle (EV) producer is set to trial a pilot program in the Netherlands allowing all compatible EVs to use its fast-charge stations. This will give Tesla valuable data on other companies' vehicles, lower company costs, and will allow it to determine just how much its own vehicles would be affected if this program were to be rolled out further. Tesla stock closed up 8.5% on the back of this news, and according to the company, “our ambition has always been to open the Supercharger network to Non-Tesla electric cars in order to encourage more drivers to make the switch to electric driving.” Read more here.
3. Pinterest (PINS) has made the move into live shopping in an attempt to become more than just an inspiration site. Typically a place where would-be shoppers go to find ideas for their purchases, Pinterest wants to keep people in its ecosystem by allowing them to buy products directly in-app. The feature, named Pinterest TV, will be a series of original live videos with the option to buy products from an interactive panel at the bottom of your screen. As the world of social media continues to become more video-centric, this will be welcomed by investors hoping that Pinterest can continue to diversify its revenue stream away from ad reliance. The company explained, “products will drop in a live shopping setting where Pinners can take advantage of discounts from brands.” Read more here.
Some more earnings from last night:
Arista Networks (ANET)
Arista Networks posted a strong earnings beat for Q3 last night, with earnings per share (EPS) of $2.96 comfortably surpassing analyst estimate of $2.73 per share. This continues a streak of four successive earnings beats for the data-driven cloud networking company. Read more here.
With a net income of $6.7 million, Chegg managed to overturn a loss from the last-year quarter. However. the company, which provides an online textbook rental service, dropped by more than 30% in after-hours trading following a miss on both revenue and subscriber estimates. The company made $171.9 million against an expected $174.5 million. Read more here.
There are 6 companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.