Friday’s Headlines: Roku Set to Take On Amazon Fire TV
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Roku Inc. (ROKU) +10.2%
Zillow (Z) +7.1%
Twilio (TWLO) +6.0%
Etsy (ETSY) +5.9%
Stitch Fix (SFIX) +5.6%
Moving Down ⬇️
GoPro (GPRO) -13.6%
Evolent Health (EVH) -4.7%
Markel Corp (MKL) -2.6%
Lemonade (LMND) -2.5%
IMAX (IMAX) -2.4%
1. Just in time for Christmas, Roku (ROKU) is reportedly in discussions with HBO Max for a distribution deal. The news sent shares up 10% yesterday, after almost doubling this year. Disney+, Apple TV, and Netflix battling for the streaming crown has helped Roku report 14.8 billion hours of viewing in Q3 on its platform, up 54% year-over-year (YoY). WarnerMedia’s HBO Max app already secured placement on Amazon Fire TV, which has put pressure on the California-based company to make a deal, or else lose viewers to the rival streaming app. Read the full story here.
2. Workday (WDAY) is back on top as its Q3 earnings smashed Wall Street’s expectations, sending shares up 4% yesterday. The software vendor reported adjusted earnings of $0.86 per share, up 62% from a year earlier, beating expectations of $0.67. Revenue increased 18% to $1.1 billion during the quarter, whilst subscription revenue was up 21% to $968.5 million. This resulted in Workday raising 2021 subscription revenue guidance to around $3.775 billion. However, the company dampened the positive earnings call by stating that the pandemic-fueled recession will hurt software sales next year, as customers of its human resources and accounting tools are struggling. Read the full press release here.
3. GoPro (GPRO) just can’t seem to catch a break this year, its shares slipped 14% yesterday after announcing it needed to raise $100 million in funding. The outdoor action camera developer, which has failed to report a profitable year since 2015, had a solid third-quarter with revenue doubling (YoY) resulting in investors pushing up shares to a more than 50% gain since September. However, with GoPro reporting long-term debt of $157 million and now the announcement of needing another $100 million, investors are selling shares. The company stated that the proceeds will be used for ‘repaying indebtedness and expanding its current business through acquisitions’ though there are no acquisitions discussions taking place at present. Read the full story here.
Some more earnings from last night:
The maker of TurboTax, QuickBooks, and Mint financial software reported strong earnings this quarter due to a resurgence in small business spending. Intuit reported adjusted earnings of $0.94 per share on revenue of $1.32 billion, beating the Street’s target of $0.37 per share on revenue of $1.21 billion. Read the full report here.
The business service provider reported EPS of $0.79 on revenue of $592.9 million, slightly beating analysts expectations of $0.70 on revenue of $575.34 million. The Texas-based company's first-quarter report shows that it is pandemic and recession-resilient. Read the full report here.
Get this week’s full calendar here.