Thursday's Headlines: Amazon's 20-To-1 Split

Thursday's Headlines: Amazon's 20-To-1 Split

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Bumble (BMBL) +41.9%

Shopify (SHOP) +14.1%

Match Group (MTCH) +12.8%

Datadog (DDOG) +12.4%

Square (SQ) +11.2%

Moving Down ⬇️

Calavo Growers (CVGW) -9.8%

Yext (YEXT) -9.3%

Stitch Fix (SFIX) -6.1%

iRobot (IRBT) -3.4%

Nordstrom (JWN) -1.4%

1. For the first time since 1999, Amazon (AMZN) is performing a stock split. Shares will be split in a 20:1 ratio so for every one share previously owned, investors will receive 20 in return — exactly the same move Google (GOOG) pulled last month. While no change to valuation occurs during a stock split, Amazon shares have moved up after-hours. Despite the existence of fractional shares, buying pressure can influence short-term movements as shares become more affordable for retail investors. More likely than not, however, the move up is a result of Amazon’s $10 billion buy-back of its own stock suggesting it believes it is currently being undervalued. Read more here.

2. CrowdStrike (CRWD) reported Q4 and full fiscal year 2021 results last night. Total revenue in Q4 increased 63% to $431 million, and it reported a net loss of $42 million. A record $217 million of annual recurring revenue (ARR) was added in Q4, and 1,638 net new customers came to CrowdStrike. Shares moved up after-hours based on strong guidance given for the year ahead — revenue of between $2.13 billion and $2.16 billion is expected. One partner, in particular, was highlighted for the fiscal year 2022 and that’s Amazon. Through AWS marketplace, ARR transacted increased more than 100% from the year prior. Read the full press release here.

3. Twitter (TWTR) has brought a brand new feature to its platform, Twitter Shops. It will allow merchants to display a catalog of up to 50 products, right from their profile, and customers will subsequently be redirected to the seller’s e-commerce storefront. The product currently has not been monetized yet and is in testing, but it will support the social media company’s end goal of attracting more businesses, creators, and influencers to its platform, and hopefully, compete with rivals Pinterest (PINS), Snapchat, TikTok, and Instagram. Read the full story here.

One more story:

Calavo Growers (CVGW) has now moved its results to March 14, 2021, so we will update our earnings calendar accordingly.

David GranahanDavid Granahan