Thursday’s Headlines: Square All Set for its Biggest Purchase Yet

Thursday’s Headlines: Square All Set for its Biggest Purchase Yet

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

iRobot (IRBT) +11.0%

Chegg (CHGG) +6.1%

Lemonade (LMND) +5.4%

PagerDuty (PD) +5.0%

Bumble (BMBL) +4.9%

Moving Down ⬇️

Zillow (Z) -24.9%

Activision Blizzard (ATVI) -14.1%

The New York Times (NYT) -9.6%

Paycom (PAYC) -7.4%

Redfin (RDFN) -6.9%

1. Square (SQ) shareholders have approved new shares being issued in order to fund the purchase of Australian buy now, pay later company Afterpay Ltd. The deal would represent the largest buyout of an Australian firm in history and Square’s largest acquisition to date. The move would secure Square as a leading figure in a radical industry that has disrupted traditional consumer credit models in recent years. Both Apple (AAPL) and Goldman Sachs have indicated plans to enter the space, showing that this is a business model with extremely high upside and future potential. In a press release earlier today, Afterpay stated that it “expects the transaction will close in the first quarter of 2022.” Read more here.

2. Roku (ROKU) shares dropped by almost 8% after hours following an underwhelming Q3 earnings report. Despite posting earnings per share (EPS) of $0.48 against analyst estimates of $0.06, revenue failed to meet expectations with the company only reporting $680 million against a predicted $683.4 million. In its shareholder letter, the company outlined how global supply chain issues and the recent pandemic were key factors behind the less than stellar earnings. In the letter, signed by both the CEO and CFO respectively, the company reiterated that “our business fundamentals remain strong but we are mindful that the challenges created by the global supply chain disruptions will likely continue into 2022.” Read more here.

3. Ford Motor Company (F) announced yesterday that reservations for its electric F-150 Lightning pickup truck had passed 160,000. This comes less than six months after debuting to much fanfare in mid-May. Interest has been high from the outset, with over 20,000 reservations made on the opening day. These figures have enabled the company to bolster its workforce by 450 through an investment of $250 million to increase the production capacity of its all-new electric offering. Investors should welcome the news from vice president of Ford Sales Andrew Fick that “continuous improvement in inventories and new products made Ford the best-selling automaker in America for the second month in a row, which was last accomplished 23 years ago.” Read more here.

Some more earnings from last night:

Booking Holdings (BKNG)
The online travel agency has lagged behind the S&P this year, but it’s back with a bang. Booking posted revenues of $4.68 billion up 77%, compared with last year’s $2.64 billion, and room nights booked is up 44% since last year, coming in well ahead of expectations.

Etsy (ETSY)
Etsy grew Q3 revenues by 18%, now up to $532 million, and app downloads increased 36% as we approach the holiday season. Focusing on home living, the brand announced the “Etsy House”, an interactive augmented reality experience for browsing and shopping. Read more here.

Evolent Health (EVH)
Evolent reported $222.5 million in revenue, down 7% year-on-year. The company continues its expansion with new partnerships in Kansas, New England, and New York, bringing the total users (lives managed) to 14.7 million. Read more here.

Markel Corp (MKL)
The insurance holding company was no snooze in Q3 after it topped analyst expectations, reporting that earned premiums grew 17% to $1.63 billion. “Our premium growth accelerated in the third quarter as we continued to attract new business and achieved double-digit rate growth, particularly on our preferred product lines,” said co-CEO Thomas S. Gayner. Read more here

Match Group (MTCH)
25% growth in revenue to $802 million wasn’t enough to match analysts’ earnings expectations, with net income coming in at $0.53 per share. The company was vocal in its thanks for all legislators who fought to reduce app store fees across the spectrum, highlighting that it would now have better profit margins moving forward. Read more here

New York Times (NYT)
Who said the news was dead? The famous old paper reported EPS of $0.23 on a revenue jump of 19.3% to $509.1 million. CEO Meredith Kopit Levien was optimistic, stating “We hit a milestone during the quarter — more than one million international digital subscriptions. Taken in total, The Times finished Q3 with more than 8.3 million paid subscriptions across our digital and print products.” Read more here.  

Take-Two Interactive (TTWO)
Strong results from the gaming publisher kept investors happy last night, with revenue increasing 2% YoY to $858 million, while net bookings jumped 3% to $984.9 million. However, don’t expect a green Christmas from Take-Two, which warned investors last night that it was expecting a lackluster holiday period due to a lack of new titles. Read more here

Trupanion (TRUP)
The pet insurance provider reported that total revenue was $181.7 million, an increase of 40% YoY, while pet enrolments shot up 37% to more than 1.1 million. “Q3 marks the continuation of our strong momentum, as shown in our key financial measures.   We continue to grow the funds available to us to reinvest in our portfolio and deploy this capital at compounding high rates of return,” said Darryl Rawlings, founder and chief executive officer of Trupanion. Read more here.

There are 16 companies on the MyWallSt shortlist that will report earnings today:

Avalara (AVLR)
Bill.com (BILL)
Blackline (BL)
Chuy's (CHUY)
Cloudflare (NET)
Cognex (CGNX)
Datadog (DDOG)
GoPro (GPRO)
Mercado Libre (MELI)
Monster Energy (MNST)
Peloton (PTON)
Pinterest (PINS)
Planet Fitness (PLNT)
Redfin (RDFN)
Square (SQ)
Truecar (TRUE)

Get this week’s full earnings calendar here.

Pádraig BolgerPádraig Bolger

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