Wednesday’s Headlines: Google Banks On Its Other Money-Makers
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Moving Down ⬇️
1. Shares in Google are up close to 8% pre-market despite reporting earnings that were hit by a significant slowdown in ad sales. First-quarter revenue came in at $6.84 billion, or $9.87 a share, compared with $6.66 billion, or $9.50 a share, in the year-ago period. There was a silver lining to earnings in the fact that YouTube ad revenue increased 33.4% to $4.04 billion, while Google Cloud sales grew 52% to $2.78 billion. Read the full report here.
2. Shares of Cognex jumped 12.1% on Tuesday after reporting the earnings beat that Wall Street was looking for. Revenue in the first quarter came in at $167.2 million, up from $154.9 million last year, which translated to net income of $20.5 million, or $0.11 per share on an adjusted basis. The vision tech company, which provides barcode readers and machine-vision systems for automating manufacturing and distribution operations, said it was maintaining a strong financial position of $845 million in cash and no debt. Read the full story here.
3. The price of Roku fell 7.2% to $119.36 per share after it was downgraded from a buy rating to neutral by analysts who argued that the stock was fairly valued. Roku is expected to ride the coattails of streaming success from the likes of Netflix and Disney as millions of people continue to live in isolation. After trailing the S&P 500 index for much of the spring, Roku stock pared back most of its losses following an early look at first-quarter results on April 13, where it reportedly brought in 3 million active accounts. Get the complete story here.
Elsewhere, other MyWallSt stocks reported earnings:
Starbucks: Shares in the coffee-giant fell after hours after it missed earnings expectations that had already been pulled back due to COVID-19. The company reported fiscal second-quarter net income of $328.4 million, or $0.28 a share, compared with a net income of $663.2 million, or $0.53 a share, in the year-ago period.
iRobot: Shares in iRobot fell after hours following an earnings report that saw revenue fall 19% during Q1. The Roomba maker reported an operating loss of $14.4 million, but gave encouraging guidance, stating that e-commerce sales had grown in recent weeks.
Paycom: The payroll software maker came out with an earnings surprise of 5.56%, with quarterly earnings of $1.33 per share on revenue of $242.37 million. Paycom shares have lost about 14% since the beginning of the year compared to the S&P 500’s -11%.
There are 9 stocks in the MyWallSt app that will report earnings today: