Wednesday’s Headlines: Microsoft Smashes Earnings, Stock Falls

Wednesday’s Headlines: Microsoft Smashes Earnings, Stock Falls

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Stitch Fix (SFIX) +6.1%

Sea Limited (SE) +6.1%

Match Group (MTCH) +5.5%

Teladoc (TDOC) +5.1%

Tiffany & Co. (TIF) +4.9%

Moving Down ⬇️

Chegg (CHGG) -11.1%

Nordstrom (JWN) -5.0%

Twilio (TWLO) -4.8%

Retail Opportunity Investments Corp (ROIC) -4.5%

Ulta Beauty (ULTA) -3.4%

1. As the first of the Big Tech stocks to report, investors were glued to Microsoft’s (MSFT) Q3 report, which beat on earnings. The Office Suite-maker reported earnings per share (EPS) of $1.82, versus $1.54 expected on revenue of $37.15 billion, versus the $35.72 billion estimated, while profits jumped 30% year-on-year (YoY) to $13.9 billion. However, 12% revenue growth YoY was down from the 13% growth reported in Q2, while guidance for the current quarter disappointed at between $39.5 billion and $40.4 billion. Microsoft shares are up about 36% since the start of 2020, while the S&P 500 is up 5% over the same period. Get the official earnings release here.

2. Shares in Shopify (SHOP) jumped 4.3% on Tuesday following its announced global partnership with short-form video phenomenon, TikTok. At launch, the agreement allows Shopify merchants to create, run, and optimize their TikTok marketing campaigns directly from the Shopify dashboard by installing the new TikTok channel app from the Shopify App Store. The deal aims to make it easier for Shopify’s 1 million+ merchants to reach TikTok’s younger audience and drive sales, and will eventually expand to include other in-app shopping features as well, both companies confirmed. See the official press release here

3. If you’re remote working right now and a fan of privacy, then Zoom’s (ZM) latest update, which allows end-to-end encrypted video calls for free accounts, is good news for you. The teleconferencing leaders stock jumped 4.13% as this new feature makes it much harder to  'zoom bomb' — unwanted, disruptive intrusion, generally by Internet trolls into a video conference call. Better late than never, Zoom’s chief information security officer Jason Lee said end-to-end encryption was a “highly requested feature from our customers, and we’re excited to make this a reality.” Read the official press release here.

Find more earnings from last night here:

Retail Opportunity Investment Corp (ROIC)
The real estate investment trust firm posted $6.5 million of net income for Q3, or $0.06 per diluted share, far below the $17.9 million, or $0.16 per diluted share posted a year ago. Despite pandemic-related issues, CEO Stuart Tanz was optimistic, stating: “We intend to continue making the most of the demand, with the goal of achieving a solid finish to 2020.”  Read more here.

Markel Corporation (MKL)
The insurance holding company posted an impressive EPS of $31.03 on revenue of $1.39 billion, up from $13.97 per share on revenue of $1.3 billion in the year-ago period. Net income of $452 million far surpassed the $205 million from the same period last year, with revenue guidance for the current quarter expected to be in the region of $2.45 billion. Read more here.

It was a mixed quarter from online education platform 2U, which beat earnings estimates with losses per share of $0.24 versus the $0.25 expected, on a revenue beat of $201.1 million — up 30.7% YoY. Losses still hit $52.6 million for the quarter, though Q4 revenue guidance impressed in the range of $760 million to $775 million. Read more here.

There are 9 companies on the MyWallSt shortlist that will report earnings today. Get this week’s full calendar here.