Tuesday's Headlines: iRobot Boosts Revenue Forecast

Tuesday's Headlines: iRobot Boosts Revenue Forecast

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️
iRobot (IRBT) +9.6%
Teladoc (TDOC) +9.3%
Zoom Communications (ZM) +8.9%
Shopify (SHOP) +8.5%
DocuSign (DOCU) +8.0%

Moving Down ⬇️
Trip.com (TCOM) -1.1%
ShotSpotter (SSTI) -1.4%
Nordstrom (JWN) -2.0%
TrueCar (TRUE) -3.0%
Eventbrite (EB) -6.5%

1. U.S. markets look set to build on yesterday's gains off the back of the news that the Trump administration is planning to unveil a $1 trillion infrastructure proposal. The initiative's purpose will be to spur the economy of the U.S. back into life after the recent coronavirus lockdowns and will focus on traditional infrastructures like roads and bridges, as well as 5G wireless and rural broadband. Yesterday, the Fed announced that it would start buying individual corporate bonds to support the market, pushing the Dow Jones, the S&P 500, and the Nasdaq into positive territory before market-close. Read more here.

2. Shares of iRobot (IRBT) spiked close to 10% yesterday after the company said that it will see "substantially stronger-than-expected" revenue for the current quarter. In a welcome update, the makers of the Roomba said that they now forecast revenue of between $260 - $270 million versus prior expectations of revenue being "down modestly from first-quarter 2020 revenue of $193 million." According to CEO Colin Angle, maintaining a clean home has become a priority for many people over the past few months and iRobot's products have "enable[ed] them to keep their homes tidy while freeing them to focus on other priorities, which may now include working from home, childcare, and homeschooling." Read the full update here.

3. The U.S. Commerce Dept. has confirmed that it is amending its prohibitions on American companies doing business with Huawei in order to set standards for the next generation of 5G networks. Last year, Huawei was placed on the Commerce Dept's "entity list", which limited the sale of the company's technology in the U.S. over "national security" concerns. However, this rowing back of restrictions on Huawei comes as U.S. tech companies like Amazon (AMZN), Qualcomm (QCOM), and Intel (INTC) risk being completely excluded from the global standard-setting of this new technology. Read more on this here.