Friday’s Headlines: Microsoft Exposed To Serious Hack
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Lemonade (LMND) +7.5%
Lululemon (LULU) +6.3%
Coupa Software (COUP) +6.0%
Nautilus (NLS) +5.8%
Tesla Motors (TSLA) +5.3%
Moving Down ⬇️
Match Group (MTCH) -3.3%
PagerDuty (PD) -2.6%
Tripadvisor (TRIP) -2.1%
Hasbro (HAS) -1.6%
Google (GOOG) -0.9%
1. Yesterday, Microsoft (MSFT) said its systems were exposed to the malware used in the Russia-linked hack that targeted U.S. states and government agencies which began back in March. The multinational technology company added that investigations so far show the attack didn’t impact customer data. Microsoft is a customer of SolarWinds Corp, whose software was used by the hackers to gain access to networks by installing malicious code. As Microsoft has become a significant vendor of software services to large government agencies, any successful cyber-attack on the company could damage its reputation for network protection which has become critical to sales. The U.S. Defense Department awarded Microsoft a $10 billion cloud-computing contract, which is currently being contested in court by rival bidder Amazon. Read the full story here.
2. As Coca-Cola (KO) sales remain flat, the company is expected to cut 2,200 jobs —including 1,200 in the U.S. — amid pandemic pressures. The reductions include voluntary and involuntary separations, and the severance packages are expected to cost between $350 million and $550 million. In the third quarter, Coke's net revenues declined 9% to $8.7 billion as the company struggled with lost sales from restaurants, sporting events, and bars — many of which have closed their doors permanently. Going forward, Coke is going to focus on its namesake beverages to hopefully improve sales, Coke and Coke Zero. Check out the full story here.
3. Online thrift store Poshmark filed its IPO prospectus on Thursday after two consecutive profitable quarters. The online marketplace for vintage clothing, shoes, and accessories racked up over $30 million in profit by taking a cut of each transaction on its website. Investors are said to be interested in Poshmark after last week’s IPOs of DoorDash and Airbnb, which are also marketplace businesses, resulted in huge first-day pops. The company’s revenue increased 28% in the first three quarters of 2020 to $192.8 million, up from $150.5 million year-over-year (YoY). Like countless other online retailers, Poshmark has benefited from a flood of demand as local governments ordered physical retail stores to close. See the full story here.
There was 1 company that reported earnings yesterday:
The delivery service company cleared $20 billion in quarterly sales for the first time ever, as earnings doubled thanks to volume growth in its International Priority and U.S. domestic residential package services. Adjusted earnings per share (EPS) came in at $4.83 on revenue of $20.6 billion, versus $3.90 on revenue of $19.33 billion expected. Read the full press release here.
Get this week’s full earnings calendar here.