Wednesday’s Headlines: Salesforce acquires Slack for over $27 billion
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
GoPro (GPRO) +6.7%
Nordstrom (JWN) +5.8%
Tripadvisor (TRIP) +5.7%
Baozun (BZUN) +4.5%
Moving Down ⬇️
Zoom Communications (ZM) -15.1%
Lemonade (LMND) -8.1%
DocuSign (DOCU) -5.3%
Trupanion (TRUP) -4.8%
Duluth Trading (DLTH) -4.7%
1. There have been no last-minute alterations to a script that investors have known about for almost a week now as Salesforce (CRM) confirmed last night that it is acquiring Slack Technologies (WORK) for $27.7 billion, using a combination of stock and cash. The news came following a Q3 earnings report from Salesforce which showed slowing revenue and weak forecast, while Slack pushed its earnings report forward a week in response to the acquisition, beating estimates on non-adjusted earnings per share (EPS) of $0.01 and revenue of $234.5 million — up 39% year-over-year (YoY). Following its acquisition, Slack shareholders will receive $26.79 in cash and 0.0776 shares of Salesforce common stock for each Slack share. Read more about the acquisition deal here, and get Slack’s earnings press release here.
2. Using calculation speed that would put ballot-counters to shame, it looks like Shopify’s (SHOP) independent sellers outsold their counterparts on Amazon (AMZN) over the Black Friday weekend. Canada-based Shopify said on Tuesday that its total Thanksgiving weekend sales soared 76% to $5.1 billion, beating the previous record of more than $2.9 billion by Saturday evening, compared to Amazon’s 60% increase for independent sellers to $4.8 billion. Estimates from Adobe Analytics showed this year’s Cyber Monday sales would come in between $10.8 billion and $11.4 billion in the U.S., up from $9.4 billion last year, due largely to the COVID-related rise in e-commerce worldwide. Read MyWallSt’s in-depth analysis on Cyber Monday and its importance here.
3. We’ve finally got an answer to the big question of what Airbnb will be valued at when it IPOs later this month — according to some reports, it could be as soon as next Thursday, December 10. Last night, the rental company revealed in an updated S-1 filing that it plans to offer 50 million shares at $44 to $50 per share, and seeks to raise $2.5 billion in its IPO, which should value it at approximately $35 billion. Airbnb plans to trade on the Nasdaq under the symbol ABNB, but judging from the anticipation surrounding this stock, it is unlikely that its $44 to $50 starting price will be available to retail investors for very long, if at all, on the day it begins trading. If you’re thinking about investing in Airbnb, you should consider reading our in-depth look at the company and what it can add to an investors’ portfolio here.
You may have noticed that Zoom Communications (ZM) stock fell 15.1% on Tuesday. This is due to its earnings report on Monday night, which investors found did not live up to heightened expectations. You can read all about it here.
Some more earnings from last night:
Despite the devastation of COVID-19, Trip.com managed to pull off a massive earnings surprise when it beat expectations with EPS of $0.34 on revenue of $805 million for the quarter ended September 2020. This is a promising sign for a business that relies exclusively on the travel sector being open, with the hope of a vaccine becoming available soon presenting an opportunity for some return to normality in 2021. Read the official press release here.
Veeva Systems (VEEV)
Shares of life-sciences cloud software provider Veeva Systems fell after-hours, despite reporting an earnings beat with EPS of $0.78 on revenue of $377.5 million in revenue, up 34% YoY. The business is confident that it will enjoy strong growth in the long-term, laying out an aggressive investing strategy through 2025 that will help it reach its targets, including full year 2022 revenue of $1.72 billion. Read the official press release here.
Get this week’s full earnings calendar here.