Friday’s Headlines: Baozun Sees its Stock Skyrocket
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Baozun (BZUN) +25.5%
Lovesac (LOVE) +13.8%
Huazhu Hotels Group (HTHT) +11.0%
Lululemon (LULU) +10.3%
Stitch Fix (SFIX) +9.7%
Moving Down ⬇️
Eventbrite (EB) -4.7%
American Tower (AMT) -2.2%
Evolent Health (EVH) -1.3%
Align Technology (ALGN) -0.6%
Redfin (RDFN) -0.2%
1. Chinese e-commerce services provider Baozun (BZUN) saw its shares skyrocket by over 25% yesterday following a better-than-expected performance in its first-quarter earnings report. Adjusted EPS was flat against an expectation of $0.02 per share, but revenue came in at $313 million against an anticipated $283.8 million. The firm grew gross merchandise volume by 28.4% to $25.6 million and saw its services revenue alone grow by 24.3% to $205.6 million. While these numbers alone may not be cause for such a significant stock boost, a strong earnings call from another Chinese e-commerce company — Alibaba — could have had an effect, with Baozun having the majority of its sales occur on Alibaba’s Tmall. Find out more here.
2. Costco (COST) followed the path of other retail giants Walmart and Target by reporting a decline in gross margins in its latest earnings call. Despite this ominous trend, the company actually posted a relatively solid quarter, reporting earnings per share (EPS) of $3.17 versus estimates of $3.03, on revenue of $52.6 billion against a predicted $51.7 billion. However, ongoing supply chain issues have sent the cost of both freight and labor soaring. Add this to continuously rising inflation levels, and it leaves Costco with few options but to raise prices in certain areas to combat these costs. Senior vice president of finance and investor relations, Robert Nelson, also noted a change in consumer habits, stating that “we're not seeing trade down really. We're seeing a little bit of shift in where people are spending their money.” Read more on the story here.
3. In more news on the story that just keeps giving, news has emerged this morning that a group of Twitter (TWTR) shareholders are looking to sue both Elon Musk and Twitter over their respective handling of the ongoing takeover. The proposed class-action lawsuit was filed on Wednesday and alleges that Musk violated numerous corporate laws and, as such, engaged in market manipulation. Much of this stems from Elon’s delayed disclosure of his initial stock purchase, but the group is also challenging the manner in which he effectively put the deal on pause by questioning the number of spam accounts on the platform. The shareholders allege that this was done solely to renegotiate or even kill the deal. This certainly adds a further layer of intrigue to the deal, and could even potentially derail it. Read more here.
Get this week’s full earnings calendar here.