Thursday’s Headlines: Never, Ever Underestimate Tesla

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Evolent Health (EVH) +5.7%

Spotify (SPOT) +4.8%

Zillow (Z) +3.7%

Retail Opportunity Investments Corp (ROIC) +2.8%

Coca-Cola (KO) +2.7%

Moving Down ⬇️

Huazhu Hotels Group (HTHT) -3.8%

Stitch Fix (SFIX) -3.9%

Wynn Resorts (WYNN) -3.9%

Slack Technologies (WORK) -5.1%

iRobot (IRBT) -7.5%

1. Tesla’s (TSLA) Q2 report confirmed what we were all wondering: this is Elon Musk’s world, and we’re all just along for the ride. The electric vehicle-maker smashed its Q2 earnings with EPS of $2.18 (excluding items) versus $0.03 expected, on revenue of $6.04 billion, which gives it a $104 million net profit. That marks four straight quarters of profitability for Tesla which should now be eligible for S&P 500 (VOO) inclusion, while the company’s stock has now risen more than 270% YTD. Read the full story here.

2. Though revenue grew 13%, despite the coronavirus, there was some disappointment over Microsoft’s (MSFT) guidance as well as slowing Azure cloud growth. While EPS came in at $1.46 on revenue of $38.03 billion, there was more bad news as licenses for commercial Windows devices shrank 4%, furthering already pessimistic attitudes towards the company's guidance of 8% revenue growth in Q3. Other storm clouds are gathering on the horizon too, as SaaS firm Slack (WORK) yesterday filed a competition complaint with the European Commission against Microsoft Teams. Get the complete story here.

3. Moving away from tech for a change, Chipotle Mexican Grill (CMG) saw digital sales triple in Q2, but couldn’t offset dining room closures which saw net sales fall 4.8% year-on-year. The burrito chain reported better-than-expected EPS of $0.40 on revenue of $1.36 billion, while net income plummeted 90% year-on-year to $8.2 million. The all-important same-store sales dip of 9.8% was not as bad as expected though, and Chipotle stock remains up 38% YTD. Read the full earnings here.

Other earnings last night

Align Technology

It’s not a great time for orthodontics, as evidenced in Align’s (ALGN) earnings which saw them report a quarterly loss per share of $0.35 on revenue of $352.31 million. Align shares have added about 13% since the beginning of the year versus the S&P 500's gain of 0.8%.

Earnings today

There are 3 stocks in the MyWallSt app that will report earnings today:

• Amazon

• Boston Beer

• Twitter