Friday's Headlines: Welcome To Nikeland

Friday's Headlines: Welcome To Nikeland

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

Moving Up ⬆️

The Home Depot (HD) +8.9%

Under Armour (UAA) +7.2%

Etsy (ETSY) +6.7%

Cloudflare (NET) +6.1%

Tesla Motors (TSLA) +6.1%

Moving Down ⬇️

StoneCo (STNE) -36.3%

Lemonade (LMND) -15.5%

Roku Inc. (ROKU) -14.4%

Upstart Holdings (UPST) -14.3%

Wix (WIX) -11.5%

1. Nike (NKE) is entering the metaverse via the launch of a virtual world known as 'Nikeland' on Roblox's (RBLX) platform. This move isn’t a shock as Nike recently filed a number of trademarks for virtual goods to protect its intellectual property. Nike will be building an online store for Roblox users to try on virtual apparel, and it will have an arena for playing games mimicking the likes of the Super Bowl and the World Cup. This alliance aligns well with the strategic aim the company has taken, of becoming 40% digital by 2025. This could be a brand new source of revenue for Nike, as well as introducing its iconic brand to a branch of younger consumers. Read the full article here.

2. Starbucks (SBUX) is rolling out Amazon (AMZN) Go technology in some stores, which allows cashier-less check-out through the use of mobile apps. The international coffee chain said it is rethinking how customers want to eat and drink following the behavioral impact of the pandemic. Customers that have signed up with Amazon One can make use of its ‘just walk out’ feature, whereby sensors, cameras, and scales will detect and tally a customer’s total. Kiosks will be available to sign up for Amazon One, or customers can make payments by card. This move pairs Amazon with one of the strongest brands in the world, and both company logos will be displayed outside of stores. Read the full story here.

3. Tesla (TSLA) has claimed the spot for second-worst in the much-anticipated Consumer Reports’ 2021 Auto Reliability Report. Focusing on EV’s only, here are some competitors’ rankings; Kia’s were well above-average reliability, Ford (F) was above-average reliability, whereas the Tesla Model X was bottom of the barrel. In the past, Tesla has had perceived quality and reliability advantages, because of its first-mover advantage and mountain of data, however, that doesn’t appear to be the case. With more and more legacy automakers entering the market, it will be interesting to see if older consumers purchasing their first EV will opt for a Tesla, or remain brand loyal and stick with the carmakers they have been familiar with for years. Read the full story here.

Some earnings from last night:

Copart (CPRT)

Copart reported its Q1 2022 results last night, beating both revenue and earnings estimates. The online car auctioneer appears to have benefited from the appreciation of used car prices, with revenue for the quarter being $217 million, up over 36% from Q1 2021 and net income increased 30% year-over-year (YoY) to $60 million. Read more here.

Intuit (INTU)

Intuit shares are rising after hours with a strong earnings beat and raised guidance. Its small business and self-employed business services segment grew revenues by 22%, its tax platform Credit Karma reported record quarterly revenue of $418 million, and the company is optimistic about its recent acquisition of MailChimp and the synergies it can bring with existing services. Read more here.

Workday (WDAY)

Workday reported 20% revenue growth YoY, and 21% growth YoY in its subscription revenue. There were a couple of management shuffles; Barbara Larson is the new Chief Financial Officer (CFO), and Pete Schlampp will be acting chief strategy officer now. Despite strong results, shares are down on Intuit’s proposed acquisition of VNDLY, a cloud vendor management company, in a $510 million all-cash deal, which investors are skeptical about. Read more here.

Just one more earnings from our shortlist today:

Baozun (BZUN) 

Get this week’s full earnings calendar here.

David GranahanDavid Granahan