Friday's Headlines: The Metaverse Is Open For Business
Here were the biggest movers in the MyWallSt shortlist this week:
Moving Up ⬆️
Trupanion (TRUP) +37.0%
LoveSac (LOVE) +33.0%
Bumble (BMBL) +15.5%
StoneCo (STNE) +15.2%
nCino (NCNO) +14.6%
Moving Down ⬇️
Stitch Fix (SFIX) -13.5%
Casey's (CASY) -7.1%
Cloudflare (NET) -5.9%
Coupa Software (COUP) -4.7%
1. Facebook's (FB) bet on Oculus appears to be finally paying off. The social media platform is having its first stab at creating its virtual reality (VR) world constructed around its ‘Meta Quest’ headset. This so-called 'Horizon Worlds' will focus on three core themes — gaming, fitness, and entertainment — and full usage has now been opened up to U.S. and Canadian customers. Facebook plans to invest $10 billion into the metaverse within the next year, aiming to attract over 1 billion users within the next decade. This will create a flurry of jobs for creators and developers and generate hundreds of billions of dollars in e-commerce sales on the digital platform. Read the full story here.
2. Ford (F) has stopped taking reservations for its F-150 lightning electric pickup. The good news is, Ford has already booked 200,000 orders. The bad news is that Ford is having issues acquiring batteries to scale the production of the vehicle. Despite short-term headwinds for manufacturing, CEO Jim Farley has reiterated his aspirations for the company to become the #1 electric vehicle (EV) manufacturer in the world, with the intention of assembling 600,000 EV units by 2023. The company has some catching up to do, but with its pickups having been best-sellers for 45 years, demand doesn’t appear to be an issue. Oh, and another plus for investors — Ford intends to reintroduce its dividend in Q4. Read the full story here.
3. Lululemon (LULU) posted its Q3 2021 earnings last night, topping both revenue and earnings estimates. Revenue increased 30% year-over-year (YoY) to $1.45 billion v.s. $1.41 billion expected, and earning per share (EPS) was $1.62, ahead of the $1.41 forecast. The company opened 18 new locations during the quarter, expanding to a total of 552 destinations for shoppers. It wasn’t all clear sailing, however. Lululemon's $500 million acquisition of Mirror has not gone to plan so far as demand has been underwhelming. CEO Calvin McDonald acknowledged this on the earnings call but explained the company “will not chase growth at any cost”, communicating his confidence in Lululemon’s core business model. Read the full press release here.
One more earnings from last night:
Costco grew total revenue 16.5% YoY to $50 billion, and EPS increased 14% from the year prior. Strong growth was visible across the U.S. and internationally, roughly a 10% increase from the year before across all regions. Even with inflationary pressures on the rise, Costco is satisfied with its current margins and inventory handling, expecting YoY price inflation between 4.5% and 5%. Read the full press release here.
One more company on the MyWallSt shortlist that will report earnings today:
Vail Resorts (MTN)
Get this week’s full earnings calendar here.