Wednesday’s Headlines: The End Of An Era
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Boston Beer Co. (SAM) +10.1%
Workday (WDAY) +8.9%
Shopify (SHOP) +7.9%
2U (TWOU) +7.6%
Wix (WIX) +6.6%
Moving Down ⬇️
iRobot (IRBT) -7.3%
Stitch Fix (SFIX) -6.8%
Baozun (BZUN) -4.7%
IMAX (IMAX) -4.7%
Nautilus (NLS) -4.6%
1. Amazon’s (AMZN) blowout Q4 earnings took a back seat on Tuesday to the news that founder and CEO Jeff Bezos is stepping down. Amazon Web Service CEO, Andy Jassy, will replace Bezos, with the latter stepping back into the executive chairman role as of Q3 2021. Bezos is leaving the position in a strong place though after Amazon reported record revenue of $125.56 billion — an outrageous 44% annual increase — with earnings per share (EPS) soaring to $14.09 versus the $7.23 expected. Amazon’s blockbuster results were attributed to a “record-breaking holiday season,” continued acceleration in e-commerce demand, and the success of a pandemic-delayed Prime Day. Read the official press release here.
2. While Amazon’s cloud business booms, Google (GOOG) Cloud appears to be stuck in investment mode following a $5.61 billion annual loss. Despite this, Google parent Alphabet did report knockout figures overall, with EPS of $22.30 smashing expectations of $15.90, while revenue soared to $56.90 billion — up 23% year-over-year (YoY). The biggest surprise for Alphabet is the growth in its direct-response ad business on YouTube, which attributed $6.89 billion in revenue and has become one of the company’s fastest-growing businesses in recent years following a long period of failure to monetize. Despite some volatility in 2020, Google’s core ad business seems to be weathering the COVID storm well. Read more here.
3. In a brief respite from earnings, Tesla (TSLA) is feeling the heat of yet another mass product recall. This time, following pressure from U.S. regulators, the EV giant is recalling 134,951 Model S and Model X vehicles due to touchscreen failures that can lead to the loss of several safety-related features. Unlike many updates from Tesla, this hardware fix cannot be done remotely. Having been forced to recall 158,716 of its Model S and X electric vehicles in January, the costs of these failures will surely be adding up for Tesla, which missed out on expectations at its Q4 earnings call last week, as well as marginally missing its 2020 delivery target. Read the full story here.
Some more earnings from last night and this morning:
Chipotle Mexican Grill (CMG)
The popular tex-mex chain saw shares fall after missing on earnings of $3.48, with revenue coming in at $1.61 billion. Despite reporting a 5% increase in same-store sales, Chipotle cited pandemic uncertainty when it declined to provide a forecast for same-store sales growth in fiscal 2021, but did say that it’s expecting a strong first quarter. Read more here.
Idexx labs beat on earnings after posting Q4 EPS of $2.01, while revenue grew 19.1% year over year to $720.9 million. The year-over-year upside was primarily driven by 23% growth in global Companion Animal Group Diagnostics’ recurring revenue as well as sustained growth in its Livestock, Poultry, and Dairy business. Read more here.
The music streaming leader ended 2020 with a bang after premium subscribers reached 155 million, up 24% YoY. This, along with a 27% increase in monthly active users to 345 million, helped the company to bring in revenue of $2.61 billion — up 24% YoY. Read more here.
There are 5 companies on the MyWallSt shortlist that will report earnings later today:
Get this week’s full earnings calendar here.