Thursday’s Headlines: Teladoc And Livongo Shock The Market

Thursday’s Headlines: Teladoc And Livongo Shock The Market

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Trupanion (TRUP) +22.7%

Match Group (MTCH) +12.2%

Walt Disney Co. (DIS) +8.8%

Nordstrom (JWN) +7.5%

Square (SQ) +7.1%

Moving Down ⬇️

Teladoc (TDOC) -19.0%

Arista Networks (ANET) -10.9%

Planet Fitness (PLNT) -6.8%

Vail Resorts (MTN) -3.1%

Diageo (DEO) -3.0%

1. Before the coronavirus pandemic struck, Teladoc (TDOC) and Livongo (LVGO) were worth a combined value of less than $10 billion — yesterday, Teladoc acquired Livongo for $18.5 billion. The stunning move will see Teladoc pay $11.33 for each Livongo share and exchange 0.592 shares of Teladoc for each share of Livongo, which amounts to a 58% to 42% split in terms of control. Not all investors were pleased with this news though, with Livongo and Teladoc’s stock prices falling 11.4% and 19% respectively following the announcement. Read the full story here.

2. If you haven’t already surmised, pandemics are good for streaming, with brand-agnostic Roku (ROKU) reporting a revenue increase of 42% YoY to $356 million. However, things took a pessimistic turn when the company then reported that TV ad spend won’t recover to pre-pandemic levels until “well into 2021”. Though guidance for 2020 was pulled, with Roku confirming that it would not be as high as was thought pre-pandemic, business still grew 346% YoY and they expect further growth by year’s end. Get the official earnings release here.

3. Ok Etsy (ETSY), we get it, e-commerce is hot right now, but there’s no need to show off! The vintage online store is soaring to all-time highs after reporting EPS of $0.75 on revenue of $428.7 million, far exceeding the expected earnings of $0.39 on revenue of $329.8 million. In anticipation of the report, Etsy rose more than 4.4%, bringing its total gains in 2020 to more than 210%. For its third quarter, Etsy expects revenue in the range of $366 million to $426 million. That's well above estimates of $279 million. Get the official earnings report here.

Earnings today

There are two companies in the MyWallSt shortlist that will report earnings today:

  • Booking Holdings

  • Datadog

  • MercadoLibre

  • The Trade Desk

  • Wix