Wednesday’s Headlines: Peloton Teams Up With Queen B
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Tripadvisor (TRIP) +10.4%
Nordstrom (JWN) +9.7%
Hain Celestial (HAIN) +8.0%
Ulta Beauty (ULTA) +7.4%
Moving Down ⬇️
ShotSpotter (SSTI) -11.7%
Zoom Communications (ZM) -9.0%
Spotify (SPOT) -8.8%
Nautilus (NLS) -8.5%
MercadoLibre (MELI) -7.9%
1. Peloton (PTON) had a good response to its stock falling 20% on Monday after the company revealed on Tuesday that it was teaming up with Beyoncé, sending shares up 5.2%. The collaboration with Beyoncé, the most requested artist by Peloton's global community of more than 3.6 million members, is commemorating Homecoming season, an annual fall celebration for students at Historically Black Colleges and Universities (HBCUs) that honors tradition and legacy. Though no financial details of the deal have been released, Queen B is unlikely to come cheap, but it represents yet more evidence of the growing brand strength that Peloton possesses, and could be the first of many going forward. Could Beyoncé be to Peloton what Michael Jordan was to Nike in the 80s? Read the official press release here.
2. Its stock might be taking a bit of a beating in recent weeks — down 7% in the last month — but Apple (AAPL) still knows how to show off, having unveiled its new M1 chips and 3 new Macs at yet another product event on Tuesday. Earlier this year, Apple announced its plans to use “Apple Silicon” in its laptops and desktop computers running the macOS operating system, abandoning its 15-year partnership with Intel. Besides lowering dependence on third-party manufacturers for its parts, Apple now has the exciting ability to develop ‘universal apps’, which can run across both Intel-based and M1-based Macs, iPad, and iPhone, increasing Mac’s traditionally weak gaming capabilities. Check out all the new tech here.
3. Spotify (SPOT) is making yet another podcast acquisition, and this time it could help them monetize their fastest-growing segment. The company said on Tuesday it has agreed to acquire ad-tech company Megaphone in a $235 million deal. The deal should give advertisers more scale in terms of who they can reach on Spotify and let podcast publishers opt-in to have their shows monetized, allowing Spotify to open up a wave of new revenue in the ever-growing podcast space. Once the deal is closed, Spotify said it will make its “Streaming Ad Insertion” tool available to all podcast publishers through Megaphone’s technology, the first time it will open that tool beyond its own original and exclusive podcasts. Read Spotify’s official press release here.
Some more earnings from last night:
Datadog topped September-quarter analyst estimates on Tuesday with adjusted earnings of $0.05 a share on revenue of $155 million — up 61% year-on-year. Shares fell after-hours though, with investors citing Datadog’s slowing growth rate following its share price’s 152% surge year-to-date. However, this is more likely due to ongoing volatility surrounding Pfizer’s vaccine hopes, which has affected many at-home stocks this week, including the cloud-computing sector. Read more here.
Hain Celestial Group (HAIN)
The global organic and natural products company reported on Monday a net sales increase of 3% to $498.6 million, with net income coming in at $27.4 million compared to $8.4 million in the prior-year period. The company has now reported 3-straight quarters of top-line growth, having experienced nearly 3 years of missed estimates prior, as it cites increasing domestic popularity and focus on international sales for its success. Read more here.
Get this week’s full calendar here.