Tuesday’s Headlines: Is Zoom’s Growth Slowing Down?
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Nautilus (NLS) +9.7%
Roku Inc. (ROKU) +6.6%
Shopify (SHOP) +5.4%
Moving Down ⬇️
Lemonade (LMND) -7.8%
Tripadvisor (TRIP) -5.2%
Baozun (BZUN) -4.6%
IMAX (IMAX) -4.4%
1. Zoom (ZM) shares fell 5% on Monday despite reporting another earnings blowout. The video communication platform reported EPS of $0.99 on revenue of $777.2 million, versus $0.76 on $694 million expected. As COVID-19 continues to force people to work and learn from home using Zoom, its revenue grew 367% this year, up 12% from Q2. Zoom expects revenue to slow down to 329% in the upcoming quarter, and investors seemed disappointed that the company’s rate of growth, which has accelerated in 2020, might moderate. Read the full press release here.
2. On Monday, Amazon Web Services (AWS) announced a new product for Apple (AAPL) devices called EC2 computing instances, tightening the Big Tech giants' relationship. The service can provide computing power to developers building applications on Apple devices. The launch of the new product, which run on Mac Mini computers, makes Amazon (AMZN) the first major vendor to offer a cloud computing service that works for Apple macOS, giving it a huge advantage over rivals Google (GOOG) and Microsoft (MSFT). Last year, Apple spent $30 million on AWS which has encouraged the two tech giants to work closely on EC2 instances. Read the full story here.
3. Under Armour (UAA) is taking the fight to Nike’s (NKE) flagship Jordan Brand after announcing a new brand with NBA star Steph Curry called 'Curry Brand'. The new line features shoes and clothes for basketball and golf which will be extended to other sports and women’s apparel over time. Under Armour Chief Executive Patrik Frisk explained, “the fact that we’re launching in between Black Friday and the holidays we think is very opportune.” The collaboration will also help Under Armour gain momentum with a younger market as it competes against Nike, who has maintained the No.1 spot as favorite for sports apparel amongst teens. Read the full story here.
There are 2 companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here