Has The Trade Desk Beaten Apple?

Has The Trade Desk Beaten Apple?

Happy Friday folks!

While we might be getting a breather from the chaos that was last week’s earnings calendar, we’re not quite out of the woods yet. It was a tough week on Wall Street as skittish investors ran for the hills following less-than-optimal reports from the likes of Bumble and Nautilus, whilst Elon Musk’s Twitter antics came back to haunt Tesla once again. And, of course, the indelible presence of inflation fears has not helped matters. 

Yet we soldier on, and there’s plenty of good news to discuss, so let’s dig in:

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

Moving Up ⬆️

The Trade Desk (TTD) +33.6%

GoPro (GPRO) +9.2%

Baozun (BZUN) +7.3%

Nordstrom (JWN) +4.9%

FedEx (FDX) +3.4%

Moving Down ⬇️

Upstart Holdings (UPST) -25.8%

Bumble (BMBL) -25.8%

Nautilus (NLS) -15.2%

Tesla Motors (TSLA) -13.0%

Tripadvisor (TRIP) -12.4%

What investors need to know 

Moving up

The Trade Desk (TTD) +33.6%

Since Apple’s infamous iOS 14.5 privacy update earlier this year, advertising-reliant firms have been in the mire. So, when The Trade Desk reported record revenue of $301 million for Q3 this week and raised its full-year guidance, investors thought Christmas had come early. It has managed to avoid the iOS-induced fate of social media companies through the success of its newest solution known as Unified ID 2.0, or UID 2.0. I’m no expert on the science behind it, but UID 2.0 is a collaborative software that tracks industry data without the use of cookies, thus reducing the reliance on Apple and Google. It’s certainly an exciting time to be an investor in a company that has, so far, kept ahead of Big Tech.  

GoPro (GPRO) +9.2%

Ah GoPro, a real up-and-downer of a company over the years. Luckily, things have been more up in recent quarters as the company has clawed its way back from the brink to actually selling products that people want to buy. In fact, at last week’s Q3 earnings call it reported net income of $311.7 million, bringing its nine-month profit to $318.5 million. And analysts are noticing too, with Morgan Stanley releasing a statement this week to announce its belief that the action camera manufacturer is on the up and up. All in all, the company is actually on track to have a profitable 2021 — its first year in the green since 2015 — and it’s all down to a renewed focus on subscriber revenue and improved products. Though it’s far from a juggernaut just yet, it’s nice to see a win for the little guy.

Baozun (BZUN) +7.3%

We may not know when it’ll report Q3 earnings, but it’s certainly been a good month for the Chinese e-commerce solutions firm. The company has enjoyed a record ‘11.11 Festival’ — also known as Singles Day in China, the equivalent of Black Friday. Total order value settled through payment gateways on all of the company’s e-commerce channels was RMB 19.18 billion ($3.01 billion) for the 2021 Festival, an increase of 16.3% compared to the 2020. The success of the event, despite supply chain issues, highlights the efficiency of Baozun’s network and bodes well for its role in the rapidly expanding e-commerce industry. It also relaxes fears that an easing of COVID-19 restrictions will lead to a reduction in online consumer spending.

Moving down

Bumble (BMBL) -25.8%

Investors were caught swiping left on Bumble this week after the dating app reported a decline in paying users for its third quarter — from 2,927,300 in Q2 to 2,866,000 in Q3. What’s more, it increased marketing spend by 46% year-over-year. But was this an overreaction? Revenue of $200.5 million actually topped estimates thanks to a 19% increase in average revenue per user. Plus, the paid user miss could just be a bump in the company’s very short road to date as its Badoo platform, popular in international markets, had an Android issue that disabled payments. With a fix in the works, investors could see those paid users jump once more. 

Tesla Motors (TSLA) -13.0%

This week, electric vehicle start-up Rivian finally went public and has already surpassed both Ford and General Motors by market cap, reaching a valuation of $104.9 billion — despite generating little-to-no revenue yet. If this upstart is a rival to Tesla, CEO Elon Musk doesn’t appear too fazed, as he’s more focused on his stock ownership. Last Saturday, the world’s richest man held a poll on Twitter asking if he should sell Tesla stock. The crowd said yes, so that’s what he appears to have done. He has sold roughly $5 billion worth of Tesla shares so far according to an SEC filing on Wednesday, with more on the way. Investors needn’t worry about long-term volatility though as Musk still owns roughly 166 million Tesla shares, so there are plenty to spare.

JamieJamie

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