Thursday’s Headlines: Microsoft Enters The Car Market

Thursday’s Headlines: Microsoft Enters The Car Market

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Twitter (TWTR) +13.2% (BILL) +10.5%

Under Armour (UAA) +8.3%

Match Group (MTCH) +7.7%

Baozun (BZUN) +7.3%

Moving Down ⬇️

Tesla Motors (TSLA) -5.3%

Nautilus (NLS) -4.5%

Cloudflare (NET) -2.7%

Copart (CPRT) -2.5%

Zillow (Z) -2.4%

1. Microsoft (MSFT) has become the latest in a line of Big Tech companies to enter the self-driving vehicle space. With Apple (AAPL) developing its own car and Alphabet (GOOG) partnering with Ford (F), Microsoft will provide its cloud computing services to help Volkswagen streamline its automated vehicles software development efforts. The primary function of the partnership is to allow over-the-air updates for the vehicles, a practice pioneered by Tesla (TSLA). In practical terms, the deal means that cars that initially hit the road with a few driver-assistance features today could add new capabilities over time that brings them closer to autonomous driving. Read the full story here.

2. Coca-Cola’s (KO) earnings report tasted a bit flat on Wednesday after missing estimates once more on revenue of $8.6 billion. As COVID-19 continues to shut down events and venues worldwide, the beverage giant reported fourth-quarter net income of $1.46 billion, or $0.34 per share, down from $2.04 billion, or $0.47 per share a year earlier. The company said the resurgence of the virus around the world in December and January has put pressure on demand, but it is confident that growth will return in 2021 despite some short-term hurt. Read the official press release here.

3. Robot help is here to stay it seems after iRobot (IRBT) beat Wall Street’s targets and raised expectations for 2021. The Massachusetts-based tech firm reported GAAP net income per share of $0.46 on revenue of $544.8 million — up 28% year-over-year. Much of this growth came from its flagship Roomba products, also known as ‘premium robots’, which saw strong holiday sales growth of 55% in Q4 and 50% for 2020. CEO Colin Angle concluded the conference on a high note, stating: “We believe that our success in continuing to drive solid top-line expansion in 2021 will also enable us to fund investment into key areas of our business and help mitigate the impact of tariffs on our 2021 profitability.” Read the official press release here

Some more earnings from last night:

Paycom (PAYC)
Paycom revealed falling earnings for Q4, with the company’s profit coming in at $24.4 million, or $0.42 per share, compared with $45.38 million, or $0.78 per share last year. CEO Chad Richison was upbeat though: “Our strong finish to 2020 further validates our differentiated employee usage strategy and the real-time ROI it provides businesses”. Read the official press release here.

Trupanion (TRUP)
It wasn’t a good quarter for the pet insurance firm which reported a loss of $3.5 million, or $0.09 per share, compared to a profit in the same period last year. There was some cause for celebration though with full-year 2020 revenue increasing 31% YoY to $502 million, with total enrolled pet increasing 33% in the same period. Read the official press release here.

Under Armour (UAA)
Investors got a pleasant surprise profit for the holiday quarter after Under Armour reported EPS of $0.12 on revenue of $1.4 billion, versus a loss per share of $0.07 on revenue of $1.27 billion expected. CEO Patrik Frisk attributed these strong results to the company’s resilience during the pandemic and ability to adapt strongly to e-commerce demand. Read the official press release here.

Zillow (Z)
The iBuying specialist reported an impressive earnings beat of $0.44 per share on revenue of $789 million during a time described by CEO Rich Burton as “a scary roller-coaster ride”. Squeezed into the report was the news that Zillow will also be acquiring ShowingTime for $500 million, a Chicago-based real estate company that sells software to facilitate home showings. Read the official press release here.

There are 5 companies on the MyWallSt shortlist that will report earnings today:

Blackline (BL)
Cloudflare (NET)
Cognex (CGNX)
Datadog (DDOG)
Disney (DIS)

Get this week’s full earnings calendar here.