Thursday's Headlines: Spotify's Copycat Move
The markets are closed today due to a public holiday. Happy Thanksgiving to all of our U.S. subscribers!
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Pure Storage (PSTG) +13.5%
Cloudflare (NET) +6.9%
Etsy (ETSY) +6.2%
Lemonade (LMND) +5.4%
Upstart Holdings (UPST) +5.2%
Moving Down ⬇️
Nordstrom (JWN) -29.0%
Autodesk (ADSK) -15.5%
StoneCo (STNE) -2.6%
BlackLine (BL) -2.4%
1. Following on from Spotify’s (SPOT) partnership with Netflix (NFLX) yesterday (you can check it out here), it has begun testing a new feature in its app called ‘Discover’. Similar to the type of ‘swipe and watch’ on TikTok, Snapchat spotlight, and Instagram reels, it allows users to unearth music in a similar way and could improve user engagement. Speculators say it will mesh with Spotify’s canvas feature, which has allowed artists to add short-form video content in the background of playing songs, rather than just static album covers. Spotify says it will “routinely conduct a number of tests in an effort to improve our user experience”, so there is no set decision to roll out Discover on iOS and Android just yet. Read the full story here.
2. Huazhu (HTHT) reported earnings last night that showed it hasn’t completely rebounded with revenue per available room (RevPAR) only 83% of RevPAR in Q3 2019. However, revenue this quarter increased 11.6% to $547 million, and the average daily rate (ADR) increased from $104 to $111. Occupancy rates increased to 48.6% from 37.9% a year ago, but this reveals the significant impact of COVID-19 on the business. CEO Jin Hui acknowledged this, adding it “weakened the confidence and willingness of our franchisees and business partners”. While Huazhu is guiding for recovery in its business, resurgences in COVID-19 could continue to influence results, particularly in its European segment, where lockdowns and restrictions are on the rise again. Read the full release here.
3. Tesla (TSLA) CEO Elon Musk has sold an additional $1 billion of his shares, now bringing the total to $9.85 billion, in the last two weeks. Some of these sales were pre-scheduled, but further selling came amid a Twitter poll where he asked his audience if he should sell 10% of his holdings; 3.5 million votes later, and he got the approval from followers. Musk still holds over 169 million shares worth $188 billion, so the sale shouldn’t spark major concern for investors, albeit, the antics can be a bit of an inconvenience. According to him, “At least 50% of my tweets were made on a porcelain throne”, but I’m not sure about that one. Read the full article here.
No more earnings this week!