Thursday’s Headlines: One Step Closer To The iCar
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Baozun (BZUN) +8.5%
Google (GOOG) +7.4%
Pure Storage (PSTG) +7.2%
Duluth Trading (DLTH) +6.4%
Nordstrom (JWN) +5.7%
Moving Down ⬇️
Spotify (SPOT) -8.1%
Match Group (MTCH) -8.0%
Eventbrite (EB) -4.3%
ShotSpotter (SSTI) -3.4%
1. The rumors appear to be true as Apple (AAPL) moves a step closer to making the ‘Apple Car’ a reality. According to sources, the iPhone maker is very close to finalizing a deal with Hyundai-Kia to manufacture an Apple-branded autonomous electric vehicle at the Kia assembly plant in West Point. The product’s rollout date is a tentative 2024, though sources have said this is likely to be extended as Apple’s demands for any partnership include total autonomy over the vehicle’s hardware and software. Such a move will put Apple in direct competition with EV leader Tesla (TSLA) in the $10 trillion global auto industry, and though toppling such a giant will be no small feat, if anybody could do it, it’s Tim Cook & Co. Just ask Fitbit. Read the complete report here.
2. PayPal (PYPL) shares are soaring after-hours following better-than-expected fourth-quarter results to top off an already strong 2020. The firm added 16 million new active accounts in Q4, up 72% from year-ago levels and bringing the total for 2020 to 72.7 million. Meanwhile, revenue soared 23% to $6.12 billion and adjusted earnings rose by 29% to $1.08 per share. PayPal’s total payment volume was bolstered by the continued decline in cash usage amid the pandemic, as well as its recent allowance of users to invest in cryptocurrency. Read the official press release here.
3. Worried about Zoom’s (ZM) share price once we go back to the office? Worry no more! The videoconferencing leader is adding ‘Kiosk Mode’; a feature that offers a safe means for office visitors to talk with receptionists. Once we’re (partially) back in our offices, visitors can enter the lobby and use a touchscreen monitor with a camera and speaker to start a call with a receptionist, who can then admit entry without being physically present, such as by remotely unlocking a door. It appears to be a long-shot bid from Zoom to keep its products relevant once this pandemic ends, but inclusion in its $499 per year Zoom Rooms package has not inspired investors, with its stock falling 2.9% yesterday. Read the full story here.
Some more earnings from last night:
Align Technology (ALGN)
Despite COVID-19, the Invisalign maker enjoyed record financial results in Q4 as revenue rose 28% YoY to $834.5 million thanks to a total annual sales increase of 3%. Much of Align’s success is due to engaging social media influencers to promote its use and a pipeline of new products that will widen its popularity among young customers. Read the official press release here.
Cognizant Technology (CTSH)
It was a mixed bag from the professional services firm after it reported an 0.8% revenue decline YoY to $4.2 billion, but its quarterly dividend increased to $0.24 per share. “Having strengthened our portfolio, and anticipating the exit of a large financial services engagement, we enter 2021 reinvigorated by our growing commercial momentum, investments in our future, and our vision to become the preeminent technology services partner to clients globally,” said CEO Brian Humphries. Read the official press release here.
Markel Corp (MKL)
Markel Corp reported fourth-quarter 2020 earnings of $15.83 per share on revenue of $9.1 billion, easily beating analyst estimates, despite a 57% net income decrease YoY. Even though it underperformed the market in 2020, co-CEO Tom Gaynor was optimistic, stating “Our business puts us in a very strong capital position which will enable us to play both offense and defense as we enter into 2021.” Read the official press release here.
Match Group (MTCH)
The Tinder owner came out with adjusted earnings of $0.48 per share, with revenue jumping 19% YoY to $651.41 million in Q4 2020. However, Match Group’s less-than-optimistic outlook reflects the company’s continued struggles amid a pandemic that has made dating just a bit more difficult than usual. Read the official press release here.
There are 7 companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.