Wednesday’s Headlines: Amazon Wants To Disrupt Big Pharma
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Tesla Motors (TSLA) +8.2%
GoPro (GPRO) +8.2%
The Trade Desk (TTD) +6.6%
Nordstrom (JWN) +6.1%
Moving Down ⬇️
Sea Limited (SE) -4.3%
Planet Fitness (PLNT) -4.1%
Nautilus (NLS) -3.9%
Duluth Trading (DLTH) -3.3%
Stitch Fix (SFIX) -2.6%
1. Amazon (AMZN) yesterday launched its biggest move yet into the $300 billion pharmacy space — no, they haven’t developed yet another COVID vaccine. The e-commerce leader finally launched Amazon Pharmacy, allowing customers in the U.S. to order prescription medications for home delivery, including free shipping for Amazon Prime members. Built off the back of its 2018 PillPack acquisition, Amazon is entering the prescription-delivery scene at an important time, as customers are increasingly relying on getting their medicines via mail to avoid getting exposed to the coronavirus. Amazon — and Big Tech in general — has not been quiet about its foray into the healthcare industry, and now Amazon Pharmacy is available to anyone over the age of 18 in 45 U.S. states. Read more here.
2. It might be the year of unbridled e-commerce growth, but Wall Street still has high expectations that were missed by Sea Limited (SE) in its Q3 earnings yesterday, sending shares falling 4.2%. The Southeast Asian gaming and e-commerce leader reported a loss of $0.69 per share on revenue of $1.21 billion versus an expected loss of $0.53 a share on revenue of $1.4 billion. However, don’t let the Street get you down; year-over-year (YoY), total revenue is up 99%, gross profit is up 101%, e-commerce revenue is up 173%, and gaming is up 110%. Those are some jaw-dropping results, regardless of what the analysts say, and they are the exact reason that we made Sea Limited our Stock of the Month for October. Since we added Sea Limited to our shortlist in June, it is up 84%. Get the official earnings press release here.
3. It’s an e-commerce three-peat today as Shopify (SHOP) yesterday announced a partnership with Ant Group’s Alipay. Shopify is integrating with Alipay’s payment platform, meaning that Shopify’s U.S.-based sellers will now be able to directly receive payments “seamlessly” from Alipay’s “one billion annual active users in China alone,” and “hundreds of millions more” in the rest of Asia in the future. In its statement, Shopify reiterated the strength of Asian e-commerce by using China’s ‘Singles Day’ example — the Chinese equivalent of Black Friday — which generated gross merchandise volume (GMV) of $74 billion over the course of the 11-day campaign at the start of November. Alipay is owned by Alibaba-backed (BABA) Ant Group, which recently had its record-breaking IPO shut down by the Chinese government. Get Shopify’s news release here.
Some more earnings from last night:
The Home Depot (HD)
On Tuesday, the big orange retailer beat Q3 estimates thanks to a 24.6% same-store sales jump YoY, while revenue hit $33.54 billion and earnings per share came in at $3.18 versus $3.06 expected. The company attributed much of this growth to its ability to effectively adapt to the pandemic’s high-demand environment, which has seen millions of people opt to give their homes a makeover as lockdowns persist. Read more here.
Get this week’s full calendar here.