Thursday's Headlines: Reddit Files For IPO
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
PagerDuty (PD) +6.8%
Upstart Holdings (UPST) +6.4%
Datadog (DDOG) +6.4%
Lemonade (LMND) +6.3%
Arista Networks (ANET) +5.8%
Moving Down ⬇️
Roku Inc. (ROKU) -7.9%
Vail Resorts (MTN) -4.3%
ShotSpotter (SSTI) -4.1%
Trip.com Group (TCOM) -2.8%
1. The social media platform, Reddit, has confidentiality submitted a draft application to the Securities and Exchange Commission to go public. The company’s app and website act as a discussion forum for news-based content, as well as a community-building aspect for hobbies, interests, and an endless stream of other topics. There’s a subreddit for everything, as they say. Currently, Reddit’s primary source of revenue is from advertising, but it also offers premium membership options, and users can purchase virtual rewards. Reddit’s growth in recent years — popularized in part by the infamous r/wallstreetbets community — has contributed to 100,000 active subreddit communities, and over 50 million daily active users (DAUs). The most recent valuation in a private funding round was $10 billion, with several prominent investors such as Fidelity injecting capital into the business. Read the full story here.
2. Google (GOOG) is launching a new service called Qaya, which begins initial testing in the U.S. today. Qaya is an integrated storefront providing new ways for creators to monetize new and existing revenue streams through e-commerce sales. Over 1,000 products can be displayed per store, whether it be physical goods such as clothing lines, or virtual products such as digital art, or photo filters. Qaya was developed to eliminate time and learning constraints and create an easy solution for creators managing a digital business. The platform will be integrated with Google Search, Google Shopping, Google Pay as well as complementing its YouTube platform designed for content creators. The service is free for now, but Google will take a cut from transactional revenue. Read the full story here.
3. Apple (AAPL) has announced the temporary closure of three of its stores in the U.S., following the rise in COVID-19 infections, and more transmissible variants. The company wants to put health and safety front and center, attempting to “support for the wellbeing of customers and employees”, by engaging in regular testing, enforcing mandatory face-coverings, and giving paid sick leave. Although this may impact holiday sales for the iPhone maker in the short run, it’s encouraging customers to avail of online shopping and curbside pickup options rather than in-store purchases. Apple has opened and closed stores several times in the midst of the pandemic already in 2021 over safety concerns, so the temporary closures are unlikely to have a major impact on sales for the quarter. Read the full story here.
Just the 1 earnings call from last night:
Despite a new round of COVID-19 variants and infection rates affecting the Chinese market for Trip.com, the travel agency recorded a 9% increase year-over-year in net revenues. This was bolstered by international business, primarily in the U.S. and Europe, which saw a 40% uptick in flight bookings. The ‘staycation’ trend was noticeable, with a 60% surge in local hotel bookings, and a 35% increase in intra-province reservations, from the year prior. Read the full press release here.