Wednesday’s Headlines: Why Is Nike Up 13% After Hours?

Wednesday’s Headlines: Why Is Nike Up 13% After Hours?

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Pinterest (PINS) +10.0%

Stitch Fix (SFIX) +8.0%

ShotSpotter (SSTI) +7.8%

Twitter (TWTR) +7.1%

Teladoc (TDOC) +6.2%

Moving Down ⬇️

Tesla Motors (TSLA) -5.6%

Baozun (BZUN) -3.5%

Silicon Valley Bank (SIVB) -3.1%

Axos Financial (AX) -2.9%

Hain Celestial (HAIN) -2.3%

1. Shares in Nike (NKE) are up 13% pre-market, and it’s no surprise when looking at its blowout Q2 earnings which saw digital sales rise 82%. Revenue soared for the quarter to $10.59 billion versus $9.15 billion expected while earnings per share (EPS) came in at $0.95 versus $0.47 expected, helped largely by a 6% increase in China sales. The biggest sneaker-maker in the U.S. has been investing in its website, mobile apps and retail stores, as more consumers are steering clear of department stores and shopping malls, and it has paid off thus far as its share price is up 86% since its March lows. Read the official press release here.

2. Prophetic is just one more adjective we can attribute to Elon Musk after the Tesla (TSLA) CEO made a number of predictions for the company during his annual ‘Battery Day’ address yesterday. Coinciding with Tesla’s 2020 shareholder’s meeting, Musk predicted that 2020 sales would be up 30% to 40%, in line with annual guidance of 500,000 deliveries. He also talked about the company’s plans to make its own large battery cells, which should lead to more affordable, efficient vehicles. Even Musk’s exuberant promise — “about 3 years from now, we’re confident we can make a very compelling $25,000 electric vehicle that’s also fully autonomous,” — wasn’t enough to stop shares falling after hours though. Read the full report here.

3. In the midst of a global pandemic, personalized clothing subscription services are not exactly at the forefront of the consumers’ mind, as evidenced by Stitch Fix’s (SFIX) 9% drop in sales. Stitch Fix reported a fourth-quarter loss of $44.5 million, or $0.44 per share, compared with earnings of $7.2 million, or $0.07 per share, a year ago, though revenue did top estimates at $443.4 million. Despite its active client base growing 9% year-over-year to 3.5 million, it wasn’t enough to see the company’s shares plummet 14% after hours. Get Stitch Fix’s official earnings release here.

JamieJamie

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