Thursday's Headlines: Spotify and Google Form an Unlikely Team
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Cloudflare (NET) +2.4%
The New York Times (NYT) +2.2%
Duolingo (DUOL) +2.0%
Bill.com (BILL) +1.9%
Moving Down ⬇️
Upstart Holdings (UPST) -6.7%
Axos Financial (AX) -4.6%
Hasbro (HAS) -4.5%
Square (SQ) -4.5%
Stitch Fix (SFIX) -4.4%
1. It was another tough day on the U.S. market yesterday, with the S&P 500 closing down 1.2%, while both the Dow Jones and the Nasdaq dropped 1.3%. Much of this volatility was driven by the same old factors — uncertainty stemming from the Russian invasion of Ukraine, the rise in oil and commodity prices, and fears over impending interest rate hikes. If you think we have it bad though, spare a thought for the Russian market. The Moscow Exchange reopened yesterday after its longest shutdown since the fall of the Soviet Union and saw some wild movements thanks to the raft of international sanctions placed on the country. More on that here.
2. Spotify (SPOT) and Google (GOOG) have reached a groundbreaking agreement that strikes another blow to the heart of the App and Play Store monopolies. This new deal will allow Spotify to offer customers within its Android app an alternative payment method to Google's own. This is significant because Google has traditionally taken a 30% cut on subscription revenues generated through its Play Store, much like Apple (AAPL) does within its App Store. Although the terms of the new revenue split between Spotify and Google have not been disclosed, this deal will surely heap more pressure on Apple, who remain locked in battle with the likes of Epic Games over this fee. More on this here.
3. The global climate remains hostile to travel operators at the minute, but Trip.com (TCOM) managed to eke out a decent performance for the past year. In its earnings report last night, the Chinese travel company reported annual revenue growth of 9% and a narrowing net loss of $86 million. Management noted that domestic travel within its home market was the main driver of recovery, with local hotel reservations increasing by 50% in the fourth quarter compared to the same time last year. However, the latest wave of COVID-19 infections in China has impacted the company once again, with revenue in the last quarter decreasing 12% compared to the quarter before it. Check out the full earnings report here.
There is one company on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.