Wednesday’s Headlines: Spotify and Netflix Team Up
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Calavo Growers (CVGW) +4.8%
StoneCo (STNE) +3.1%
Mastercard (MA) +2.4%
Zillow (Z) +2.0%
Markel Corp (MKL) +2.0%
Moving Down ⬇️
Zoom Communications (ZM) -14.7%
LoveSac (LOVE) -10.6%
Trupanion (TRUP) -6.9%
Teladoc (TDOC) -5.4%
DraftKings (DKNG) -4.8%
1. Spotify (SPOT) and Netflix (NFLX) have announced a new partnership that will allow you to easily search for and find the soundtracks to your favorite shows. The two streaming giants announced the creation of a “Netflix Hub” that will exist within the Spotify ecosystem. This hub will act as a one-stop shop for all official soundtracks, playlists, and podcasts associated with Netflix’s offerings. The companies already had an existing partnership, but the interesting thing is that no money exchanged hands as part of this deal. Both firms see the partnership as mutually beneficial to their respective fans. This could be a smart collaboration by Netflix, as Spotify remains rooted in music streaming and has yet to become a competitor in the visual space. Read more here.
2. Luxury department store chain Nordstrom (JWN) posted a costly earnings miss late yesterday. Earnings per share (EPS) of $0.39 against an estimated $0.56, on revenue of $3.64 billion versus a predicted $3.55 billion saw shares plummet by over 26% in extended trading. Despite beating on revenue, the drastic earnings miss and a less than stellar fourth-quarter outlook was enough to send investors into full-blown panic mode. Labor costs and the poor performance of the company’s outlet division, Nordstrom Rack, were cited as the main reasons behind the underwhelming quarter. Reflecting on some of the strengths the company still maintains, CEO Erik Nordstrom admitted that “we need to move faster to capitalize on these strengths and profitably grow market share.” Read more here.
3. Apple (AAPL) and Amazon (AMZN) have been fined almost $230 million by the Italian government following a comprehensive investigation into the reselling of Apple-owned products on Amazon’s Italian site. The fine revolves around an agreement signed by both companies which restricted some resellers of Beats products from listing on Amazon’s marketplace. Certain resellers were closed out of the market and Italy’s antitrust authority detailed that they were “chosen individually and in a discriminatory way.” The fines roughly equate to $151 million for Amazon and $77.3 million for Apple. Both companies have confirmed the intention to appeal the ruling, with an Amazon spokesperson describing the fine as “disproportionate and unjustified.” Read more here.
Some more earnings from last night:
Autodesk just about managed to beat analyst estimates in its earnings report yesterday evening. The software company posted adjusted EPS of $1.33 against an expected $1.26, on revenue of $1.13 billion against a predicted $1.12 billion. Its Q4 outlooks were slightly below analyst’s figures, with the company citing supply chain issues and inflation as key mitigating factors. Read more here.
Pure Storage (PSTG)
Pure Storage posted a strong earnings beat late on Tuesday, reporting earnings of $0.22 per share against an anticipated $0.12, on revenue of $562.7 million versus an expected $531 million. This positive earnings call, coupled with another strong outlook for the fourth quarter, saw the company’s stock surge by almost 12% in extended trading. Read more here.
There is one company on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.