Wednesday’s Headlines: Things Could Be Worse For Disney...
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Evolent Health (EVH) +6.0%
Take-Two Interactive (TTWO) +5.9%
Planet Fitness (PLNT) +5.7%
Howard Hughes Corporation (HHC) +5.3%
Teladoc (TDOC) +5.2%
Moving Down ⬇️
Diageo (DEO) -4.7%
Peloton Interactive (PTON) -3.7%
Nautilus (NLS) -3.4%
Pinterest (PINS) -3.2%
Match Group (MTCH) -2.6%
1. Operating income took a $3.5 billion hit, studio revenue is down 55%, and quarterly net losses came in at $4.72 billion, but at least Disney (DIS) is letting us stream Mulan soon — for $29.99. Despite big hits to its overall operations, Disney’s $0.08 loss per share was still far less than the $0.64 analysts expected — though the $11.78 billion in revenue was lower than hoped. As for Disney+, the streaming service has reportedly hit 100 million subscribers a mere nine months after it launched, sending Disney’s share price up after hours. Get the official earnings release here.
2. Privacy is clearly an issue at Jack Dorsey-owned companies as just weeks after Twitter’s (TWTR) worst-ever hack, Square (SQ) saw its Q2 earnings report leaked a day early. Luckily for ol’ Jack though, Square’s results were fantastic, reporting a 64% jump in net revenue to $1.92 billion, or EPS of $0.18, while its flagship Cash App product saw gross profit jump 167% YoY to $281 million. Amid the rise in cashless payments due to the fact that nobody wants to touch things anymore, transactions are up 50%, while Square’s stock has soared 114% YTD. Get the official earnings here.
3. Meanwhile, outside the realm of earnings, Google (GOOG) is struggling to close its $2.1 billion Fitbit (FIT) deal which was agreed upon last November. The acquisition has come under scrutiny from the European Commission, which is concerned that Google could “further entrench” its market position in the online advertising business using Fitbit’s user data for target ads. With Google already facing a litany of investigations both domestically and abroad, its argument that it has no interest in user data has fallen on muted ears, with real doubts emerging about whether the deal will go ahead. Read the full story here.
Some other earnings reports from last night:
Activision Blizzard (ATVI)
If you haven’t noticed yet, video games are so in right now, with Activision Blizzard posting record revenue growth of 38% to $1.9 billion, beating analyst estimates. It is seeing exceptional numbers from its popular ‘Call of Duty’ franchise, with ‘Warzone’ hitting 75 million downloads since March. Read more here.
Cloud is king right now, and Twilio investors know it following the company’s earnings report which showed EPS of $0.09, up 200% YoY, on revenue of $400.8 million. For Q3, Twilio forecast revenue in a range of $401 million to $406 million, versus analyst estimates of $379 million. Read more here.
SaaS firm Paycom came out with quarterly earnings of $0.62 per share versus estimates of $0.60 but missed on revenue of $181.59 million in Q2. Paycom shares have added about 8.8% since the beginning of the year versus the S&P 500's (VOO) gain of 2%. Read more here.
There are two companies in the MyWallSt shortlist that will report earnings today: