Wednesday’s Headlines: Trupanion Fetches a New Partner
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Trupanion (TRUP) +39.0%
StoneCo (STNE) +10.7%
Upstart Holdings (UPST) +10.1%
Bumble (BMBL) +9.7%
Datadog (DDOG) +9.7%
Moving Down ⬇️
Calavo Growers (CVGW) -5.9%
Chegg (CHGG) -4.2%
DocuSign (DOCU) -3.7%
Coupa Software (COUP) -2.9%
1. Trupanion (TRUP) saw its stock price skyrocket 39% following the announcement of an impending partnership with pet e-commerce brand Chewy. Chewy is set to begin offering wellness and insurance plans for the pets within its ecosystem and will make use of Trupanion’s suite of proprietary software to do so. Chewy currently boasts over 20 million customers so this partnership will greatly increase Trupanion’s overall reach of just over 600,000 pets enrolled currently. The deal is expected to be fully implemented by Spring 2022. Margi Tooth, Co-President of Trupanion, spoke encouragingly of the deal, explaining that “we’re humbled and excited when we find a partner like Chewy, who recognizes the value of our brand and expertise.” Read more here.
2. Yesterday Twitter (TWTR) announced its acquisition of the messaging platform, Quill. The news, announced via Twitter thread, will be welcomed by investors as the company looks to innovate following the departure of former CEO Jack Dorsey last week. Despite the terms of the deal not being released, it is understood that Quill will effectively shut down while its team joins the wider Twitter workforce. Caldwell expressed that this move is aiming to “make messaging tools like DMs a more useful and expressive way people can have conversations on the service.” Twitter’s stock price remained relatively stable following the announcement, with investors perhaps wary to move quite yet following last week’s staff reshuffle. Read more here.
3. Amazon (AMZN) was hit by costly outages to its cloud services arm, AWS, yesterday, with users in the east of the United States particularly affected. The outages first began at approximately 11 a.m. EST and lasted until 6:30 p.m. EST. Customers reported issues accessing a whole host of services; including Netflix, Disney+, Coinbase, Robinhood, and Slack. More worryingly perhaps, is that the outage also affected critical tools used internally within Amazon's e-commerce division. An inability for workers to access the Flex and AtoZ apps made it impossible to scan packages or access delivery routes. This could be disastrous as the holiday season begins to really ramp up, but there are no indications as of yet regarding just how costly the outage may have been for the company. Read more here.
Some more earnings from last night:
Cloud computing company PagerDuty beat estimates last night in a solid earnings report. The company posted adjusted earnings per share (EPS) of -$0.07 against analyst estimates of -$0.09, on revenue of $71.8 million versus a predicted $70.1 million. The San Francisco-based company also offered positive guidance for Q4, all of which has led to an 11% boost for the stock in extended trading. Read more here.
Stitch Fix (SFIX)
Stitch Fix saw its stock price plummet by over 20% in extended trading following a mixed earnings report yesterday. Despite beating earnings estimates, the company disappointed investors with its outlook for the rest of the year. The company predicts sales between $505 million and $520 million for the next quarter, with analysts previously expecting $585 million. Supply chain issues were cited as one of the chief problems affecting growth. Read more here.
There are four companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.