Friday’s Headlines: Chinese Ban Doesn’t Bode Well For U.S. Companies
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Trupanion (TRUP) +14.9%
ShotSpotter (SSTI) +8.1%
Wynn Resorts (WYNN) +7.4%
Facebook (FB) +6.5%
Chuy's (CHUY) +5.5%
Moving Down ⬇️
2U (TWOU) -12.6%
Roku Inc. (ROKU) -7.0%T
Twilio (TWLO) -6.3%
Match Group (MTCH) -5.6%
Sea Limited (SE) -5.0%
1. Fears of further tensions between the U.S. and China could put a strain on the market once more as President Trump signed executive orders banning Chinese companies — effectively formalizing the 45-day deadline by which Microsoft (MSFT) can buy TikTok. Starting September 20, ‘transactions’ with TikTok-owner ByteDance and conglomerate Tencent Holdings will be prohibited. With significant stakes in Tesla (TSLA), Snap (SNAP), and several other U.S. businesses, and it is unclear as of yet to what extent this ban will hurt dealings with the Chinese company. Read the full story here.
2. Speaking of TikTok, its impending ban has emboldened Facebook (FB) to launch its own competitor, ‘Reel’, sending shares up more than 6%. The new Instagram addition is a short-form video feature that allows Instagram users to create content with overlaid audio and augmented reality effects — sound familiar? Should Microsoft’s acquisition of TikTok fall through before the September 15 deadline, the latter’s 100 million U.S. users will be up for grabs, and Zuckerberg will surely be lying in wait to snatch them up. Get the complete story here.
3. In the world of earnings, The Trade Desk (TTD) reported results and forecast an outlook that exceeded Wall Street expectations. The advertising technology firm reported Q2 net income of $25.1 million, or $0.52 a share, compared with $27.8 million, or $0.58 a share, in the year-ago period. "While the advertising industry hit the pause button early in the second quarter due to uncertainty around the COVID-19 pandemic, we saw substantial improvement in ad spend as the quarter progressed," said Jeff Green, Trade Desk chief executive, in a statement. Get the official press release here.
Some more earnings from yesterday:
Booking Holdings (BKNG)
It’s a sign of the times in the travel industry that Booking Holdings’ EPS fell 145.82% to -$10.81 but still managed to beat estimates. Revenue of $63 million represented a decline of 83.64% year over year, which beat the estimate of $56.9 million. Get the official report here.
New York-based Datadog earned an adjusted $0.05 per share, swinging to a profit from a year earlier, while revenue jumped 68% to $140 million. For the current quarter, Datadog's earnings forecast ranged from zero cents to a $0.01 profit on revenue of $144 million. Read more here.
Poor GoPro can’t catch a break after posting a net loss of $51 million, or $0.34 a share, compared with a loss of $11.3 million, or $0.08 a share, in the year-earlier quarter. GoPro’s revenue for the second quarter declined to $134.2 million from $292.4 million a year earlier. Read more here.
Trupanion has been on an unstoppable run of late and reported Q2 earnings of $0.04 per share, beating the estimates of a loss of $0.01 per share. The pet insurance provider also saw revenue jump 28% YoY to $117.92 million, beating estimates by nearly 3%. See more here.
Wix.com had a record-breaking quarter, adding 9.3 million registered users — up 64% YoY and reporting a revenue increase of 27% to $236.1 million. Guidance for Q3 was optimistic with the company anticipating between $247-$250 million in revenue. Read more here.