Thursday’s Headlines: Meta Shook By Leadership Loss
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Salesforce (CRM) +9.9%
PagerDuty (PD) +3.0%
ShotSpotter (SSTI) +2.4%
Datadog (DDOG) +2.2%
TrueCar (TRUE) +1.8%
Moving Down ⬇️
Upstart Holdings (UPST) -8.8%
Lemonade (LMND) -7.6%
Square (SQ) -6.4%
2U (TWOU) -5.7%
1. News broke yesterday that long-serving Meta (FB) COO Sheryl Sandberg will be stepping away from the company in the coming months. Sandberg has been Mark Zuckerberg’s second-in-command since 2008 and has helped oversee the phenomenal growth experienced by the Big Tech firm during that period. The main reason behind her departure is Sandberg’s desire to shift her focus to her philanthropic work. She will be replaced by current Meta chief growth officer Javier Olivan but will maintain her seat on the company’s board. Zuckerberg has already stated that this move will likely spark an internal restructuring at Meta, explaining that “I think Meta has reached the point where it makes sense for our product and business groups to be more closely integrated, rather than having all the business and operations functions organized separately from our products.” Read more on the story here.
2. Elon Musk is once again embroiled in controversy as the enigmatic Tesla (TSLA) CEO has demanded employees return to their respective offices or risk losing their jobs. Two separate internal emails from Musk have now been widely published, both stating his desire to have workers be present in Tesla offices for at least 40 hours per week. Exceptions may be given to “particularly exceptional contributors” at Musk’s discretion, but by and large, Tesla workers are going to have to show up it seems. Musk’s reasoning stems from his own exceptional work expectations for himself, telling employees that had he not “lived in the factory so much,” the company would “long ago have gone bankrupt.” He closed with what seemed like an attempt at a rallying cry — “Tesla has and will create and actually manufacture the most exciting and meaningful products of any company on Earth. This will not happen by phoning it in.” Read more here.
3. Pure Storage (PSTG) has been given a significant boost in pre-market trading following a positive earnings call yesterday after markets closed. The all-flash data storage company is currently up close to 10% pre-market. A first-quarter loss of $11.5 million was a marked improvement on the $84.2 million loss in the year-ago quarter. Adjusted earnings per share (EPS) of $0.25 came in well ahead of analyst predictions of just $0.04, while revenue also topped estimates at $620.4 million. Not only did Pure Storage beat the analysts for its top and bottom lines, but its guidance for the full fiscal year has also beaten the Street. CFO Kevin Krysler expressed that the company is “very pleased with our exceptional performance this quarter, marking a strong start to the fiscal year.” Find out more on Pure Storage’s earnings here.
Get this week’s full earnings calendar here.