Wednesday’s Headlines: Microsoft Soars After Earnings Beat
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Baozun (BZUN) +35.0%
iRobot (IRBT) +9.1%
Hain Celestial (HAIN) +5.1%
Stitch Fix (SFIX) +4.9%
Chegg (CHGG) +4.5%
Moving Down ⬇️
Cloudflare (NET) -6.9%
Bill.com (BILL) -6.7%
Twilio (TWLO) -6.5%
Pinterest (PINS) -5.6%
1. Microsoft’s (MSFT) earnings may not be grabbing quite as many headlines as GameStop (GME) today, but its impressive quarterly report can’t be ignored. The company reported an earnings beat of $2.03 per share on revenue of $43.08 billion — a 17% increase year-over-year (YoY) — while guidance for the coming quarter topped expectations at between $40.35 billion and $41.25 billion. The driving force behind Microsoft’s strong finish to 2020 was without a doubt its Azure Cloud business, which experienced 50% growth YoY as the pandemic forces more and more businesses to shore up their cloud infrastructure. To read the full earnings report, you can find it here.
2. Shares in Twitter (TWTR) jumped almost 4% on Tuesday following the announcement of yet another acquisition — its third in 2021 alone. For an undisclosed fee, Twitter acquired Dutch email newsletter startup, Revue, as the microblogging platform seeks to attract users who want to make money from their followers. Twitter will continue to operate Revue as a standalone product but is making the platform’s pro features free for all users and lowering the fee charged on paid newsletters to 5%. It is a little difficult to see where Revue will fit into Twitter’s ecosystem, with the company itself stating that it imagines anything from “allowing people to sign up for newsletters from their favorite follows on Twitter, to new settings for writers to host conversations with their subscribers.” Read the full story here.
3. If there’s one thing we know about Tesla (TSLA) CEO Elon Musk, it’s that he knows how to pump a stock. The world’s richest man sent shares in Etsy (ETSY) soaring more than 9% pre-market on Tuesday after tweeting a very simple: “I kinda love Etsy”. Good ol’ Elon has a history of such moves, including the infamous “Tesla stock is too high imo” tweet last summer, and this month’s misunderstood ‘Signal’ tweet, which sent the wrong stock soaring 6,000%. Investors should be aware that there is not actually any major Etsy development underway as we await its Q4 earnings call, expected to take place at the end of February. In the meantime, you can read our opinion here.
Some more earnings from last night:
The logistics real estate leader left much to be desired after reporting net earnings of $0.38 for the quarter and $2.01 for the year compared with $0.61 and $2.46 for the same periods in 2019. The decline in 2020 was attributed to weakened earnings off the back of asset sales, as well as higher costs from paying off many of its debts early. Read the official report here.
Starbucks pulled out a mixed bag in Q4 after beating on earnings of $0.61 per share but missing on revenue of $6.75 billion, largely due to a 5% drop in same-store sales in the U.S. There was a shining light though for the coffee maker, which reported that sales rose 5% in its second-largest market, China. Read the official press release here.
Get this week’s full earnings calendar here.
There are 4 companies on the MyWallSt shortlist that will report earnings today: