Thursday’s Headlines: Market Leaps On Potential Gilead Vaccine
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Moving Down ⬇️
1. Stocks jumped Wednesday on the back of positive data from a potential coronavirus treatment from Gilead Sciences, which has been fast-tracked for emergency use by the FDA. The Dow surged 2.2%, the Nasdaq jumped 3.6%, while the S&P 500 gained 2.7% off the back of the news, which could provide a rough timeline for businesses as to when the economy can reopen. Wednesday’s gains put the S&P 500 up more than 13% for the month, and the Dow up 12.4% for April, marking their best months since 1974 and 1987 respectively. Get the full report here.
2. On Wednesday, Spotify reported its earnings for Q1 with revenues of $2 billion and an inching into a positive net income of $1 million. Monthly active users now stand at 286 million, with paid (premium) users growing 31% to 130 million and ad-supported users growing 32% to 163 million. Spotify beat analysts’ forecasts on both sales — they had on average been expecting revenues of $1.86 billion — and EPS, which had been forecast to be -$0.49 but came in at -$0.20. Read the full story here.
3. Microsoft shares rose as much as 5% in extended trading on Wednesday after the company reported fiscal third-quarter sales growth of 15%, fueled by its cloud business. Earnings came in at $1.40 per share on top of revenue of $35.02 billion for the quarter. The company said in a statement that the coronavirus “had minimal net impact on the total company revenue” in the quarter and that “effects of COVID-19 may not be fully reflected in the financial results until future periods.” Get the complete report here.
Elsewhere, other MyWallSt stocks reported earnings:
American Tower: American Tower reported an earnings success on Wednesday, with the company's bottom line totaling $415 million, or $0.93 per share, and revenue rising 9.9% to $1.99 billion. The company is expected to dodge the COVID-19 hit in 2020, as management emphasized the predictability of its business model.
Align: Oral health company Align saw much of its business drop in Q1, generating revenue of $551 million, 15% down from the last previous quarter, with shipment completely missing estimates at 359,440 cases. Shares in Align have recovered roughly 50% from its 2020 lows, and management is optimistic about business picking up in the important Chinese market.
Facebook: Despite the sting of the coronavirus, Facebook still reported first-quarter earnings of $4.9 billion, or $1.71 a share, with revenue growth YOY of 17%, and a 10% improvement on monthly average users. But the company cautioned its business “has been impacted by the COVID-19 pandemic and, like all companies, we are facing a period of unprecedented uncertainty in our business outlook.”
Hasbro: Toymaker Hasbro swung to a net loss of $69.6 million, or $0.51 a share, in Q1, but ended the quarter with $1.2 billion in cash, with revolving credit of $1.7 million as protection against the COVID-19 downturn. The company said on Wednesday it expects its second quarter to take a hit from the coronavirus pandemic, but it expects to be ready for the holiday season.
Mastercard: Mastercard topped earnings expectations on Wednesday after posting net income of $1.7 billion, or $1.68 a share on revenue of $4 billion. Not only that, but the company sees early signs of spending levels stabilizing, having fallen over 17% in the past 3 months.
Tesla: Tesla shares rose more than 9% after hours as the company revealed a profitable quarter of $16 million, with EPS of $1.24 on revenue of $5.99 billion. CEO Elon Musk marred the occasion somewhat when he slammed the Bay Area’s shelter-in-place orders as “unconstitutional” and “fascism” in a profanity-laced tirade.
ServiceNow: ServiceNow earnings and revenue topped Wall Street's first-quarter estimates as the company managed to close big deals despite the coronavirus lockdown. The California-based company revealed EPS of $1.09 on sales of $1.04 billion, with subscription revenue jumping 34%.
Teladoc: The surprise from earnings on Wednesday came from Teladoc, which missed on Q1 estimates with a loss per share of $0.40 on a net loss of $29.6 million. Teladoc has been thrust into the limelight because it specializes in video conferencing for the healthcare industry, and expects to earn $215 million to $225 million in revenue in Q2.
There are 4 stocks in the MyWallSt app that will report earnings today: