Friday's Headlines: Move Over Audible
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%
1. Spotify (SPOT) has just acquired Findaway, the audiobook platform that allows authors to create and bring stories to life. Findaway recently launched Findaway Voices Marketplace, the creative platform that allows authors to find the right narrators and simplify the production process with a free set of tools. The new deal brings with it a pre-existing partnership with Costco, giving Spotify users access to Findaway’s catalog of over 400,000 books. The audiobook space is currently worth $3.3 billion and is expected to grow to $15 billion by 2027, so this looks like a promising acquisition as Spotify acts on its goal to become “the destination for all things audio both for listeners and creators”. You can read more about it here.
2. Tesla’s (TSLA) Elon Musk will sell shares worth almost $5 billion. The filings made available during the week show 3.5 million shares were sold on Tuesday and Wednesday, totaling $3.88 billion. But, this was a 10b5 transaction, which means a predetermined number of shares would be sold at a predetermined time, so it was already known to Musk. Digging further into the filings, Musk has planned to sell a further 930,000 shares (less than 1% of his holdings) at some point in the future, worth $1.1 billion. Maybe, his Twitter poll from earlier this week about selling shares was just to stir the pot once again, knowing this news would come out. However, with 166 million shares still in the founder’s possession, it shouldn’t spark concern for investors. Read the full story here.
3. Single’s Day, or Double 11, is a holiday celebrated in China, but it’s most well known as sales season, just like Black Friday and Cyber Monday. The day has turned into a full-blown festival this year though, with some retailers starting the promotion from the beginning of November. The likes of Baozun (BZUN) saw record numbers while e-commerce giants have reportedly made record sales, including $84.54 billion for Alibaba, and $54.6 billion for JD, and Apple’s (AAPL) iPhones, in particular, have been reported as a best seller across product categories. Despite regulatory scrutiny, tech crackdowns, government intervention, and the still-unfolding Evergrande crisis, there’s no shortage of risks with the companies, but overall consumer spending appears to remain strong. Read the full article here.
One more earnings from last night:
Wix reported solid earnings with revenue up 23% year-on-year to $321 million, noting its Business Solutions segment was up 55% YoY, and its Business Collections segment was up 53% YoY. The website solutions company increased its guidance for Q4, saying an “increasing number of businesses are relying on Wix as their full operating system”. Read more here.
No more earnings this week!