Wednesday’s Headlines: Peloton Wins By Losing?
Morning folks! Did anyone get yesterday’s puzzle?
The answer was Acquisition.
Today's clue can be found in our very first story, let us know on Twitter @MyWallStHQ if you think you’ve got it.
We’ll reveal the answer in tomorrow’s headlines.
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Peloton Interactive (PTON) +25.3%
Chegg (CHGG) +16.0%
Nautilus (NLS) +12.9%
iRobot (IRBT) +7.7%
Stitch Fix (SFIX) +6.0%
Moving Down ⬇️
Teladoc (TDOC) -6.1%
StoneCo (STNE) -3.5%
Spotify (SPOT) -3.3%
Facebook (FB) -2.1%
1. Another day, another drama for Peloton (PTON). With only hours to go until its eagerly awaited earnings call, the company decided to part ways with its CEO, John Foley, which we covered here. For now, let’s focus on the earnings. Peloton, to no one's surprise, missed on both earnings and revenue in a disastrous quarter for the firm. It reported a loss per share of $1.39 against an expected $1.27, on revenue of $1.13 billion. Peloton also introduced a new cost-cutting strategy that will see it reduce its number of owned warehouses, instead focusing on third-party fulfilment. Surprisingly, the stock soared by over 25% with investors seemingly pleased at the company’s reaction to its shortcomings. Read more here.
2. Spotify (SPOT) has agreed a deal with footballing giant FC Barcelona to become the club's latest sponsor. The deal, worth €280 million ($320 million), will see the streaming company’s logo appear on the jerseys of both the men’s and women’s teams. Spotify will also become the first-ever brand to officially sponsor the club's fabled Camp Nou stadium, with the company likely to obtain naming rights to the sportsground. The deal comes at a fantastic time for both parties, with Spotify currently struggling for good press following fall-out over its exclusive deal with comedian and podcaster Joe Rogan, and FC Barcelona dealing with mounting debt that currently totals over $1.5 billion. You can find more on the story here, but an official announcement is expected very soon.
3. Amazon (AMZN) has announced that it is expanding its telehealth program across 20 new cities in the United States. The program, known as Amazon Care, was initially launched in 2019 as a pilot program for employees around the company’s Seattle HQ. It originally provided virtual care and telehealth consultations, but has since expanded to include primary-care services also. This move aims to capitalize on the COVID pandemic by allowing people to avail of important healthcare services from the comfort of their own homes. The rollout of this program will put Amazon in direct competition with companies like Teladoc (TDOC), which saw its stock decline by 6% following the news. Click here to find out more on the story.
Some more earnings from last night:
Chipotle Mexican Grill (CMG) beat estimates for earnings yesterday and met analyst expectations for revenue in Q4. The restaurant chain reported adjusted earnings per share (EPS) of $5.58 against a predicted $5.25, on revenue of $1.96 billion. Menu price hikes helped the company navigate a tricky quarter for restaurants, with CEO Brian Niccol stating that "we're pretty fortunate with the pricing power that we have." Read more here.
Paycom (PAYC) posted a solid earnings beat in its Q4 earnings last night. The online payroll provider reported EPS of $1.11 versus an expected $1.08, on revenue of $284.99 million against an analyst estimate of $275.78. With the company continuing to expand geographically, opening in five new locations in the last five months, Paycom has plenty of room to continue its growth. You can get more information here.
There are four companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.