Friday's Headlines: Duolingo Claws Back
Morning folks! Did anyone get yesterday’s puzzle?
The answer was Electric Vehicles.
See if you can figure out today’s puzzle, and let us know on Twitter @MyWallStHQ if you think you’ve got it.
Hint: One of the key metrics we look for in a company’s earnings report.
We’ll reveal the answer in Monday’s headlines.
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Pure Storage (PSTG) +12.8%
Brown-Forman (BF.B) +7.1%
ShotSpotter (SSTI) +3.8%
American Tower (AMT) +1.8%
Moving Down ⬇️
Veeva Systems (VEEV) -16.2%
Bumble (BMBL) -15.7%
Cloudflare (NET) -13.2%
DraftKings (DKNG) -9.8%
Datadog (DDOG) -9.7%
1. Duolingo (DUOL) shares are crawling back, rising 10% after-hours, after a rocky start to its public debut. Following the release of the language learning platform’s Q4 earnings, all metrics were on the up; total bookings increased 59% to $91 million, subscription bookings grew 61% to $70 million, and paid subscribers increased 56% to 2.5 million. There were 42.4 million monthly active users (MAUs) and 10.1 million were daily active users (DAUs) in Q4 — both of which are at record highs — showing a strong user base that could translate into monetizable customers over the long run. CEO and Co-Founder, Luis von Ahn, stated engagement and value were of the utmost importance for its users, and it has “plans to continue broadening our offerings beyond languages.” Read the full press release here.
2. Ol’ reliable Costco (COST) beat on the top and bottom line in last night’s earnings report. Total Q4 revenue came in at $51.9 billion — up 16% from the year prior — and ahead of estimates of $51.47 billion. Net income reported was $1.3 billion on earnings per share of $2.92 v.s. $2.74 expected. Rising gasoline prices had an impact on the company’s overall sales, so Costco provided additional details to illustrate the strong growth excluding this factor. Not including gas, comparable sales were up 11% and online sales rose 12.5% in Q4. The wholesale giant is demonstrating its reliability as a brick-and-mortar play even amid turbulent market conditions, all the while growing consistently. Read the full press release here.
3. Amazon (AMZN) is closing in on its acquisition of the movie and television studio brand most well-known for its iconic roaring lion head logo, MGM, for a total of $6.5 billion. The company submitted all required information to the Federal Trade Commission (FTC) and the pressure now lies with them to submit a response by mid-March, or Amazon will be free to finalize the deal. MGM is one of the smaller players in movie production in terms of revenue, but its library consists of renowned titles such as the popular ‘Rocky’ and ‘James Bond’ franchises. Combined with more anticipated Amazon titles such as ‘The Rings of Power’ and ‘Fallout’ set to release later this year, closing out this deal will expand Amazon’s value proposition for streaming considerably. Read the full story here.
One more earnings from last night:
Brown-Forman Corporation (BF.B) reported a 14% increase in sales in Q4 to $1.03 billion and earnings per share was $0.54. Despite supply chains issues, increased demand for its range of brands is strong and CEO Lawson Whites notes the business is “on track to deliver high-quality results for fiscal 2022.” Read the full press release here.