Monday’s Headlines: Zillow Bounces Back
Here were the biggest movers in the MyWallSt shortlist on Friday:
Moving Up ⬆️
Zillow (Z) +11.3%
Yext (YEXT) +8.6%
Smartsheet (SMAR) +7.8%
FedEx (FDX) +2.4%
Moving Down ⬇️
DocuSign (DOCU) -42.2%
Trip.com Group (TCOM) -12.2%
DraftKings (DKNG) -9.4%
Baozun (BZUN) -8.4%
Etsy (ETSY) -7.3%
1. Online real estate firm Zillow (Z) saw its stock price rise by more than 11% following a positive update on the closing of its iBuying business. Last month, the company saw roughly a quarter of its value evaporate following the news that it would be exiting the iBuying space. However, the recent announcement that sales are moving much faster than anticipated has been welcomed by investors. The company raised its Q4 midpoint revenue outlook from $1.9 billion to $2.6 billion and the markets responded favorably. Zillow also announced what it plans to do with this unexpected influx of money, with the board authorizing a buyback of up to $750 million of its own stock. You can read more on the story here.
2. In his first week as Twitter (TWTR) CEO following Jack Dorsey relinquishing the role, Parag Agrawal made significant changes to the management structure at the company. General manager (GM) positions were announced in an attempt to “drive increased accountability, speed, and operational efficiency” across the company. The three GM positions will cover core tech, consumer, and revenue respectively. Vice President of Engineering Nick Caldwell will oversee core tech, former Head of Product Kayvon Beykpour will head up consumer, and Revenue Product Lead Bruce Falck will manage revenue. Twitter also announced that its engineering lead Michael Montano and its head of design and research Dantley Davis will be stepping down at the end of the year in a huge shake-up for the company. Read more here.
3. Globally supply chain issues have been wreaking havoc on companies across the world of late. Amazon (AMZN), however, has found some novel ways to try to alleviate this issue. Chief among these is how the company has been making its own shipping containers in China. Containers are in tremendously short supply at the moment, with prices having increased ten-fold from $2,000 to $20,000 during the course of the pandemic. Creating its own containers comes with a number of advantages, including faster shipping and removal of the need to return the containers to Asia as most companies do. While this step hasn’t totally prevented Amazon from dealing with dwindling stock and price increases, it has certainly helped to minimize these issues in comparison to other firms. Read more here.
There is one company on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.