Monday’s Headlines: Why Did PagerDuty Jump 26%?
Here were the biggest movers in the MyWallSt shortlist on Friday:
Moving Up ⬆️
PagerDuty (PD) +26.2%
Pure Storage (PSTG) +8.5%
Sea Limited (SE) +8.3%
Tripadvisor (TRIP) +8.2%
Nordstrom (JWN) +6.5%
Moving Down ⬇️
Yext (YEXT) -18.8%
Stitch Fix (SFIX) -6.6%
Ulta Beauty (ULTA) -3.4%
Pinterest (PINS) -3.4%
Copart (CPRT) -2.5%
1. Shares of PagerDuty (PD) soared to all-time highs on Friday after the cloud-based provider of digital infrastructure monitoring services topped expectations in its third-quarter earnings report and raised its guidance for the full year. We covered this briefly on Friday, but wanted to give more context to the blowout earnings, which came out as a quarterly loss of $0.09 per share, versus a loss of $0.10 expected, on revenue of $53.77 million, up 25.8% year-on-year. Profitability also improved as gross margin rose from 84.5% to 85.7%, and its adjusted operating loss narrowed from $9.3 million to $6.3 million. The recent MyWallSt addition is well-positioned to benefit from the long-term tailwinds of digital acceleration, cloud migration, and DevOps, according to CEO Jennifer Tejada. Read the full press release here.
2. Last week we confirmed that Slack (WORK) had been acquired by Salesforce (CRM) for north of $27 billion; is Fastly (FSLY) the next big acquisition story? According to “vague takeover chatter”, industry giant, Cisco (CSCO), is in talks to acquire Fastly, sending shares up 7% on Friday and bringing its total gains in 2020 to 312%. With a market valuation of just over $10 billion, Fastly would be considered ‘affordable’ to Cisco, which has a $30 billion cash pile, but it is not clear how much Fastly would add to Cisco’s much larger business. Either way, if there is a story here, expect to hear more in the coming weeks. Read more here.
3. Not content with quietly joining the S&P 500 on December 21, Tesla (TSLA) found itself outperforming the market once more on Friday after a fresh upgrade from Goldman Sachs (GS), as well as the publishing of its first-ever diversity report on Friday. Goldman Sachs is setting a 12-month price target to $780 — a further 30% jump from current prices. Meanwhile, the diversity report makes for less comfortable reading as it outlined that 83% of employees in leadership roles are men and 59% are White. Moving forward, Tesla said it will recruit from historically Black colleges and universities and conduct unconscious bias training for managers and recruiters. You can read the full report here.
There are 3 companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.