Wednesday’s Headlines: Amazon All Set To Split
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Amazon (AMZN) +4.4%
Trip.com Group (TCOM) +3.6%
Hasbro (HAS) +3.1%
Nike (NKE) +2.5%
Moving Down ⬇️
DraftKings (DKNG) -7.9%
Farfetch (FTCH) -7.8%
Zendesk (ZEN) -7.7%
Redfin (RDFN) -7.6%
2U (TWOU) -7.6%
1. Shares in Big Tech firm Amazon (AMZN) received a 4.4% boost yesterday following the news that its proposed 20-for-1 stock split has been approved. Should this uptick last until market close, it would mark a four-day streak of growth for the company, and could even end up being the stock’s best four-day performance since mid-April 2020. The stock split is now set to take effect on Monday, June 6. Every Amazon shareholder will receive 19 extra shares for each one they currently hold. Stock splits typically give share prices a notable boost, however it must be noted that they in no way alter the intrinsic value of a stock. All Amazon has done is split its proverbial pie into smaller segments. This will mark the company’s first stock split since 1999. Read more here.
2. Salesforce (CRM) stock is making moves in pre-market trading following an upbeat earnings call after the bell yesterday. The cloud-computing company is currently trading up over 7% following beats on both the top and bottom lines. The firm beat estimates for earnings per share (EPS) by $0.04 with a figure of $0.98 per share, while also beating revenue estimates by posting $7.41 billion for the quarter. According to co-founder and co-CEO Marc Benioff, “we’re just not seeing material impact on the broader economic world that all of you are in.” This relative immunity from wider macroeconomic uncertainty allowed Salesforce to raise its guidance for profit for the full year, but it must be noted that its earnings forecast was lowered slightly. Find out information about the earnings call here.
3. Huazhu Hotels Group (HTHT) announced its Q1 2022 results yesterday, causing a rise in its share price of 5.7% by market close. Revenue increased by 15.2% year-over-year to RMB 2.7 billion ($423 million) for the quarter — in line with the previously announced revenue guidance of an 11-15% increase. Hotel turnover increased 16.4% year-over-year, excluding Steigenberger Hotels AG and its subsidiaries. CEO Jin Hui explained that “since late March 2022, our China business has encountered tremendous challenges with the highly infectious Omicron variant spreading nationwide.” He then went on to explain the measures taken to combat this major headwind, before reinforcing the company’s near-term focus on “efficiency improvements, negotiation of further lease waivers, and personnel cost optimization.” Read more here.
Get this week’s full earnings calendar here.