Friday’s Headlines: Amazon Had Its Best Year Ever

Friday’s Headlines: Amazon Had Its Best Year Ever

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Pinterest (PINS) +26.9%

Twitter (TWTR) +8.0%

2U (TWOU) +6.6%

ServiceNow (NOW) +5.5%

Facebook (FB) +4.9%

Moving Down ⬇️

Etsy (ETSY) -5.2%

Zoom Communications (ZM) -5.1%

Peloton Interactive (PTON) -5.1%

Shopify (SHOP) -4.8%

Teladoc (TDOC) -4.0%

1. With still another three months to go, Amazon (AMZN) has already had its most profitable year ever after posting sales growth of 37% to hit $96.15 billion, setting a record for most sales in a quarter. Adjusted earnings per share (EPS) smashed expectations at $12.37 versus the $7.41 estimate in its Q3 earnings report. CEO Jeff Bezos predicts Amazon to beat its sales record in Q4 as he suspects ‘an unprecedented holiday season’ as customers shop early for gifts. The world’s largest e-commerce platform continues to be one of the biggest beneficiaries of the pandemic, as consumers flocked to the site for essentials. Read more here.

2. Google’s (GOOGL) parent company Alphabet was the star of the evening after crushing earnings with revenue up 14% to $46.17 billion and earnings per share (EPS) of $16.40, far surpassing analyst estimates. Shares jumped by 8% on Thursday evening following a strong rebound in its core advertising revenue — especially with Google Search and YouTube — which was hit hard by customer spending pullbacks amid the COVID-19 pandemic. Despite confronting the biggest tech antitrust lawsuit in over two decades and contesting accusations of censorship, CEO of Alphabet Sundar Pichai owed its success to ‘the deep investments we’ve made in AI and other technologies.’ Read more here.

3. Apple (AAPL) was not so lucky with its Q3 report. Despite strong Mac and iPad sales, its earnings disappointed as iPhone revenue of $26.44 billion missed estimates sending shares down 5% Thursday evening in after hours trading. Adjusted earnings per share (EPS) of $0.73 on overall revenue of $64.7 billion barely beat the Street. Tim Cook, CEO of Apple, said the lack of a new iPhone in China in Q3 negatively affected sales, which fell 29% in the country. Analysts worry that increasing financial uncertainty among consumers is causing a slowdown in iPhone sales, but Apple remains optimistic that iPhone 12 sales will perform strongly through the holiday season. Read more here.

Find more earnings from last night here:

Activision Blizzard (ATVI) 
For the quarter ended September 30, the gaming giant reported revenue of $1.95 billion with earnings per share of $0.78, up from $1.28 billion, and EPS of $0.26 a year ago. Overall monthly active users fell to 390 million, down from 428 million this time last year, sending ATVI stock down in after-hours trading. Read more here.

American Tower (AMT)
The telecom real estate trust missed analysts’ forecasts but beat on revenue with EPS of $1.04 versus $1.11 estimated on revenue of $2.01 billion versus $1.97 billion expected. According to its press release: “Looking forward, as 5G deployments in the U.S. accelerate and as wireless technology evolves globally, we believe that our macro tower-oriented footprint is well-positioned to generate consistent, recurring growth and attractive returns.” Read more here.

Atlassian (TEAM) 
The Australian firm topped analyst estimates with earnings of $0.30 per share on revenue of $459.5 million versus consensus estimates of $0.27 on $440.41 million. The move from office to the home has forced companies to accelerate their cloud computing needs, helping Atlassian increase revenue and add more than 8,600 net new customers during the quarter. Read more here

Axos Financial (AX)
The Axos Bank parent reported an impressive net income increase of 30% YoY to $53 million, or $0.91 per share. “We achieved a record quarter in mortgage banking as a result of 148% year-over-year increase in single-family agency loan originations and robust gain-on-sale margins”, said President and Chief Executive Officer Greg Garrabrants. Read more here

Blackline (BL) 
The American enterprise software company boasted impressive 21% revenue growth YoY to $90.5 million, while net losses came in at $8.6 million, or $0.15 per share. Its recent acquisition of Rimilia, a leader in accounts receivable automation solutions, means that Blackline has expanded its core customer capabilities and total addressable market. Read more here

Facebook (FB) 
Worrying signs for ‘the social network’ after it reported a decline in North America users of 2 million users, though the July #StopHateForProfit ad boycott does not appear to have hurt, with revenue up 22% YoY. Facebook still managed to post an earnings beat of $2.71 cents per share on revenue of $21.47 billion, though it warned of flat user growth due to premature elevation relating to COVID lockdowns earlier this year. Read more here.

IDEXX Labs (IDXX) 
IDEXX announced earnings per share of $1.75 on revenue of $721.8 million, surpassing analyst anticipations of $1.43 per share on revenue of $671.16 million. According to its statement, high revenue growth was supported by sustained strong global recovery in the pet healthcare market. Read more here.

IMAX (IMAX)
As was expected, cinema chain IMAX reported a loss of $47.2 million, thanks to the coronavirus, compared to a year-earlier $9 million profit, with losses per share coming in at $0.80. It wasn’t all gloom though, with CEO Richard Gelfond stating: “With continued box office revenues from our strong local language slate and revenues from theater installations, the company estimates our average monthly cash flow will be approximately break-even through the first quarter of 2021.” Read more here

Shopify (SHOP)
The e-commerce wonder beat estimates across the board with EPS of $1.13 — versus a loss per share of $0.29 a year earlier — and 96% revenue growth, bringing total income for the quarter to $767.4 million. Gross merchandise volume from merchant customers also jumped 109% to $30.9 billion, versus estimates of $27.46 billion. Read more here

Spotify (SPOT)
The Swedish music streaming leader missed expectations across the board with losses per share of $0.68 on revenue of $2.31 billion, versus estimates of a $0.61 loss per share. Total monthly active users did surpass estimates of 316 million with 320 million users confirmed last quarter. Read more here

Starbucks (SBUX) 
The famous coffee maker beat the analysts in Q3 with revenue of $6.2 billion and EPS of $0.51, despite net sales falling 8% quarter-over-quarter (QoQ). Starbucks cited strong rebounds in its two largest markets, the U.S. and China, as the cause of its revenue beat, as the company adapts to COVID restrictions and reopens stores, albeit in a limited capacity. Read more here.

StoneCo (STNE)

The Brazilian payment solutions firm beat on Q3 earnings of $0.87 per share, an increase of 26.3% YoY, and net income of $249.1 million. The Warren Buffet-backed company cited strong customer acquisition, which surpassed 63,000 this quarter, 26% higher than the pace of client addition in the first quarter of this year. Read more here.

Twitter (TWTR)
The social blogging site may have beaten estimates with EPS of $0.19 on revenue of $936 million, but declining user growth — just 1 million net additions in Q3 — sent the stock falling immediately after its report. The company cited uncertainties surrounding the upcoming presidential election as a reason for erratic user behavior. Read more here.

Zendesk (ZEN)
The customer service software company rounded up a busy Thursday by far-surpassing expectations, as EPS rose 41.67% YoY to $0.17 on a 24% revenue increase to $262 million. The company claims that the initial shock of COVID is now behind it, causing a rise in customers who need more elegant customer service solutions, considering that many staff are now working remotely. Read more here.

There is 1 company on the MyWallSt shortlist that will report earnings today
 

Before Open
Under Armour (UA)
 

Get this week’s full calendar here 

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