Tuesday’s Headlines: Twitter Defies its Shareholders
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Farfetch (FTCH) +26.7%
Upstart Holdings (UPST) +16.8%
Ulta Beauty (ULTA) +12.5%
Autodesk (ADSK) +10.3%
Lemonade (LMND) +10.0%
Moving Down ⬇️
Baozun (BZUN) -6.4%
Workday (WDAY) -5.6%
Duolingo (DUOL) -0.6%
Vail Resorts (MTN) -0.3%
BlackLine (BL) -0.1%
1. A regulatory filing from Twitter (TWTR) on Friday revealed that director Egon Durban will not be leaving the company’s board, despite shareholders voting to oust him from the position. The social media platform claims that he failed to receive adequate shareholder support because he currently sits on the board of six other publicly traded companies. The filing stated that “the Board considers Mr. Durban a highly effective member and believes that he brings to the Board an unparalleled operational knowledge of the industry, a unique perspective, and an invaluable skill set and experience with mergers and acquisitions.” Considering the current situation Twitter finds itself in, this might not be the worst course of action. However, considering some shareholders are already looking to sue the company, actively going against their wishes could be troublesome. Read more here.
2. S&P 500 (VOO) futures rose last night following a relatively steady and — dare I say it — hopeful week for Wall Street. S&P 500 futures rose by 0.3%, with Dow Jones Industrial Average futures and Nasdaq 100 futures also rising by 0.1% and 0.8% respectively. Following weeks of continued losses, each of these indexes broke the trend last week and moved upwards. The S&P 500 grew by 6.5%, the Dow closed up 6.2%, and the Nasdaq gained 6.8%, marking the best week for all but the latter since late 2020. A retail rebound seemed to drive this growth, as many consumer-facing companies reported better-than-expected earnings following downbeat calls from titans such as Target and Walmart the week before. A welcome inflation report also revealed that prices could soon be easing also, prompting investors to buy. Investors will be hoping this sentiment continues as we enter another week of earnings following yesterday’s closure of the markets due to Memorial Day. Read more here.
3. Autodesk (ADSK) saw its shares receive a 10% boost over the weekend following a widely successful earnings report on Thursday after the bell. The software company reported earnings per share (EPS) of $1.43 — beating analyst estimates by 7.5% and improving its figure from the year-ago quarter by an impressive 38.8%. Revenue also beat expectations, with Autodesk generating $1.17 billion throughout the quarter, marking an 18% increase year-over-year. Much of this stellar performance seemed to be driven by a rise in subscriptions for new products, along with increased renewal rates for existing products. According to CEO Andrew Agnost, “Autodesk's strong Q1 results reflect the company's steady execution, industry-leading products and platforms, and resilience through elevated times of uncertainty.” You can read more on the story here.
Get this week’s full earnings calendar here.