Tuesday’s Headlines: Peloton Boosts U.S. Manufacturing With $420M Acquisition
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
ShotSpotter (SSTI) +5.8%
Nike (NKE) +4.9%
Nautilus (NLS) +4.2%
Roku Inc. (ROKU) +3.9%
Chegg (CHGG) +3.6%
Moving Down ⬇️
Tesla Motors (TSLA) -6.5%
Eventbrite (EB) -4.2%
FactSet (FDS) -4.1%
GoPro (GPRO) -3.5%
Tripadvisor (TRIP) -3.5%
1. Yesterday, maker of pricey bikes and treadmills Peloton (PTON) announced its plans to buy fitness-equipment company Precor for $420 million. News of the deal with Precor, a division of Finnish sporting goods company Amer Sports, pushed Peloton’s stock up 8% yesterday as it now has U.S. manufacturing capabilities and new expansion opportunities. In November, the New York-based company confirmed that it was struggling with pandemic-fueled demand for its equipment, and consumers were becoming frustrated. Through the Precor deal, the company will gain 625,000 square feet of manufacturing capacity in the U.S. allowing Peloton to get its products to American consumers faster. Read the full press release here.
2. It looks like Big Tech players Google (GOOGL) and Microsoft (MSFT) are getting involved in the video-sharing business by investing in Indian TikTok clone, Josh. The app’s parent company, VerSe Innovation Pvt, has raised more than $100 million from a group of investors, including Google and Microsoft. Josh has already accrued 77 million monthly active users and is just one of several short-video platforms that have sprung up since India blocked popular TikTok in June, which has attracted global investor interest in apps filling the gap. Google set aside $10 billion earlier this year for investments in India, and is now supporting VerSe whose other news-centered application, Dailyhunt, attracts 300 million users from 14 local languages. See the full story here.
3. It seems the ‘Apple car’ chitter-chatter has resurfaced with new reports pointing to a 2024 launch date. Apple’s (AAPL) not-so-secret Project Titan, which last year cut 200 employees, is planning to produce an electric vehicle with “breakthrough battery technology” and automated vehicle technology. The iPhone maker’s vehicle efforts have been messy since 2014 and at one point, Apple withdrew its effort to focus on software. However, according to reports, the technology giant is ramping up orders for auto parts and components from suppliers signaling the project is going ahead. Project Titan is led by Doug Field, who used to work at Tesla so it’s looking like the Apple car might square off more with Tesla, rather than Alphabet’s Waymo. Check out the full story here.
The last 2 companies to report earnings in 2020:
Calavo Growers (CVGW)
The consumer goods and farm products company stated that due to many foodservice outlets remaining closed and unable to absorb their crop size, revenue and gross margins were down in the fourth quarter. The report showed earnings per share (EPS) of $0.34, down 24.44% year-over-year (YoY), on revenue of $234.5 million down 19.76%. Analysts estimated EPS of $0.64 on revenue of $256 million. See the full press release here.
FactSet Research Systems (FDS)
The financial data and software company reported solid results for the first quarter. EPS rose 11.63% over the past year to $2.88, which beat the estimate of $2.75. Revenue of $388.2 million was up 5.88% (YoY), versus analysts estimates of $387.4 million. The increase in revenue is primarily due to higher sales of analytics and content and technology solutions in the quarter. Read the full press release here.
Get this week’s full earnings calendar here.