Thursday’s Headlines: Shopify Becomes Our First Double-Day Bagger
1. Shares in Shopify rose nearly 8% on Wednesday following an earnings report that beat analyst expectations. The e-commerce giant reported earnings per share of $0.01, versus a loss of -$0.01 per share last year, while revenue jumped 47% to $505.2 million. For full-year 2020, it forecast revenue in a range of $2.13 billion to $2.16 billion versus estimates of $2.11 billion, as the company continues to be a thorn in the side of larger rivals Amazon and eBay. Much of the quarter’s success is attributed to worldwide sales of over $2.9 billion between Black Friday and Cyber Monday, up about 61% from the same period in 2018. Read more here.
2. Shares in Facebook rose on Wednesday following a statement that its key messaging product, Whatsapp, had surpassed 2 billion users. The report came from Whatsapp CEO Will Cathcart, with the new figures falling just half a billion short of monthly Facebook user numbers. Facebook purchased Whatsapp for $19 billion back in 2014, with many fearing privacy breaches due to the acquisition. However, Whatsapp continues to act as a separate company under the Facebook umbrella and pledged to honor its commitments to privacy and security. Read the full story here.
3. Amazon and POTUS are at loggerheads once more over the infamous Pentagon cloud contract that was awarded to Microsoft last October. According to a spokesperson, Amazon wants to question President Donald Trump in its protest of the so-called JEDI contract award to make sure the process was “free of political interference.” In November, Amazon filed a notice in federal court that it was protesting the award, and in December claimed that Trump launched “behind-the-scenes attacks” against the company. Read the complete report here.