Wednesday’s Headlines: Why Is Tesla Down 21% Today?

Wednesday’s Headlines: Why Is Tesla Down 21% Today?

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Peloton Interactive (PTON) +6.2%

Under Armour (UAA) +5.0%

Eventbrite (EB) +3.5%

Ford Motor Company (F) +1.9%

Roku Inc. (ROKU) +1.7%

Moving Down ⬇️

Tesla Motors (TSLA) -21.1%

Apple (AAPL) -6.7%

Wynn Resorts (WYNN) -5.7%

Shopify (SHOP) -5.7%

MercadoLibre (MELI) -5.6%

1. In what has become the worst single-day performance in its history, Tesla (TSLA) shares fell 21% on Tuesday after the company’s S&P 500 (VOO) snub. This contrasts with Tesla’s up-and-coming rival Nikola (NKLA), which saw its share price soar 40% yesterday after General Motors (GM) took a $2 billion stake in the firm. Despite its recent slump, Tesla stock remains up around 300% year-to-date (YTD) and is still up 20% since it announced a stock split on August 20. Read the full story here.

2. On a day of heavy tech sell-offs, exercise equipment-maker Peloton (PTON) found itself jumping 6.2% off the back of new product announcements. The company’s new Bike+ will cost $2,495 and will be available from Wednesday; The Tread, which will retail for $2,495, will be available from December and early 2021; while the company’s flagship bike will drop to $1,895 from $2,245 on Wednesday. Demand for the 8-year-old company’s original stationary bike and workout programs has skyrocketed during the coronavirus pandemic, with its stock up 188% YTD. Read more here.

3. I’ve said it before and I’ll say it again: if you’re not hitting Zoom-like (ZM) numbers then investors don’t want to know you, as evidenced by Slack’s (WORK) Q2 report last night. Slack shares fell significantly after-hours following its earnings that show it broke even for EPS on revenue of $215.9 million, far surpassing expectations, while also reporting a net loss of $73 million, down from $360 million a year ago. However, investors expected more substantial growth as the world continues to work remotely, with the likes of Microsoft (MSFT) becoming an increasingly popular alternative to Slack. Read the official press release here.

Here are some more earnings from the MyWallSt shortlist last night:

Coupa Software (COUP)

Shares in the SaaS firm are down after-hours following Q2 earnings that showed revenue grew 32% year-over-year to $125.9 million, with subscription revenue growing 34%. However, the forecast EPS of $0.02 to $0.03 failed to meet Wall Street consensus standards.

Calavo Growers (CVGW)

The avocado growers saw EPS fall 19.78% over the past year to $0.73, which beat the estimate of $0.72 with revenue declining 25% to $270 million. The company failed to report guidance for the rest of the year as shares fall after-hours.

Casey’s General Stores (CASY)

The retail group reported a mixed bag with EPS of $3.24 on revenue of $2.11 billion versus expectations of $2 on $2.13 billion. Shares in the company are up 9.5% since the start of the year, even amidst tough times for the retail industry.

Lululemon (LULU)

The athleisure brand saw shares wobble after-hours following a Q2 earnings report that topped analyst estimates with second-quarter net income of $86.8 million, or $0.66 a share. Total revenue rose to $902.9 million from $883.4 million in the year-ago quarter.