Tuesday’s Headlines: Take-Two Holds Strong
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
2U (TWOU) +6.8%
Calavo Growers (CVGW) +4.9%
Chegg (CHGG) +2.9%
Evolent Health (EVH) +2.8%
Ericsson (ERIC) +2.5%
Moving Down ⬇️
Cloudflare (NET) -13.6%
Datadog (DDOG) -10.7%
Shopify (SHOP) -10.6%
Twilio (TWLO) -10.0%
PagerDuty (PD) -10.0%
1. Take-Two Interactive (TTWO) reported its fourth-quarter fiscal year 2022 results yesterday evening and, despite some notable misses, seemed to largely satisfy shareholders. The game developer announced earnings per share (EPS) of $0.95 against an expected $0.65, on revenue of $930 million versus analyst predictions of $897 million. This appears to be where much of the good news ends, however, with Take-Two largely missing expectations with its forecast for the current fiscal year. Expected earnings of between $1.90 and $2.15 per share and revenue of $3.67 billion to $3.77 billion both missed Wall Street’s expectations in a pattern that has seen many companies lose significant value this earnings season. Take-Two appears to have weathered that particular storm though, as its stock is currently trending upwards by over 5% in pre-market trading. To read more on Take-Two’s earnings call, click here.
2. Amazon (AMZN) could be left waiting on the delivery of up to 100,000 delivery vans from electric vehicle (EV) company Rivian following the commencement of a potentially lengthy legal battle. Rivian is suing one of the suppliers of its vehicles’ seats following claims that said supplier almost doubled its prices after contracts had been signed. Amazon, which holds roughly an 18% stake in the EV manufacturer, placed a significant order of 100,000 vehicles last year that Rivian expected to be delivered by 2025. Rivian has now claimed that this dispute could result in the forced closure of its commercial van program entirely. This would be a double blow for Amazon, as it would not only lose out on a significant boost to its fleet but also potentially lose money as part of its equity investment in Rivian. Shares in the automaker sank by almost 7% on the news, leaving it down over 75% year-to-date. Read more here.
3. Wix (WIX) saw its shares plunge by as much as 10.5% yesterday before finishing the day down over 6% following an underwhelming first-quarter earnings call. The Israeli software company reported relatively mixed results, with a loss per share of $0.72 missing estimates of a loss of $0.61, but revenue of $341.6 million outpaced analyst predictions of $340.1 million. Disappointing guidance could well have been what tipped shareholders over the edge, with the company forecasting sales of between $1.396 billion and $1.434 billion for the coming year. Analysts had been expecting revenue of $1.45 billion, in what ultimately looks to have been a costly miss for the firm. CFO Lior Shemesh spoke of impending profitability for Wix, stating that “we are not going to do the same investments that we have done in the past so you can definitely expect more profitability in the near future.” Find out more here.
Get this week’s full earnings calendar here.