Monday’s Headlines: Teladoc Officially Completes Merger with Livongo
Here were the biggest movers in the MyWallSt shortlist on Friday:
Moving Up ⬆️
BlackLine (BL) +5.8%
Zendesk (ZEN) +4.6%
Axos Financial (AX) +4.2%
Google (GOOG) +3.4%
Moving Down ⬇️
Twitter (TWTR) -21.1%
Spotify (SPOT) -10.1%
Teladoc (TDOC) -9.8%
Stitch Fix (SFIX) -9.7%
Atlassian (TEAM) -9.1%
1. Though the $18.5 billion deal was announced back in early August, the deed is finally done as Teladoc (TDOC) officially merged with Livongo (LVGO) on Friday. Under the terms of the merger, Livongo shareholders will receive 0.5920 shares of Teladoc Health plus cash of $11.33 for each Livongo share (including the special dividend declared by Livongo). Last week, Teladoc reported strong third-quarter results and continued confidence in sustained growth, with forecasts expecting to directly deliver more than 10 million virtual visits in 2020, while its stock is up 136% year-to-date (YTD). Read the official press release here.
2. On Friday, troubled apparel manufacturer Under Armour (UAA) reported sales and earnings that topped expectations, thanks to a 19% surge in demand for its workout shoes in North America during the coronavirus pandemic. Earnings per share (EPS) of $0.26 far surpassed estimates of $0.03, while revenue also beat expectations at $1.43 billion, thanks in part to the sale of its MyFitnessPal workout platform to private-equity firm Francisco Partners for $345 million. All is still not well for Under Armour though, whose stock has fallen more than 70% in the past 5 years and continued to report declining U.S. sales, which were down 5% compared to its 18% international growth. Read Under Armour’s official press release here.
3. In all the madness of last Thursday’s earnings, Netflix’s (NFLX) latest price announcement almost got lost in all the noise! The leading streaming platform announced plans to raise U.S. standard plan prices by $1 per month and premium plans by $2 per month, eliciting a mixed reaction from users and investors alike. After seeing its stock soar early in trading, Netflix investors got cold feet as disgruntled users took to the internet to voice their displeasure, with shares closing down 5.65% on Friday. These subscription price increases are part of Netflix’s long-term strategy — having only reported $2.8 billion in net income over the past 12 months — as it seeks to widen its margins going forward whilst still offering better value for money than traditional cable. Read the full report here.
Twitter’s 21.1% decline comes off the back of a poor Q3 performance, reported in its earnings last Thursday night. We reported the results here on Friday.
There are 2 companies on the MyWallSt shortlist that will report earnings today.
Get this week’s full calendar here.