Wednesday’s Headlines: Square Bets Big on Bitcoin
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Wynn Resorts (WYNN) +7.7%
Pinterest (PINS) +4.4%
Twitter (TWTR) +3.8%
Tripadvisor (TRIP) +3.0%
Planet Fitness (PLNT) +3.0%
Moving Down ⬇️
Nautilus (NLS) -23.1%
Duluth Trading (DLTH) -8.5%
Trupanion (TRUP) -7.2%
2U (TWOU) -7.2%
Yext (YEXT) -6.7%
1. The news that Square (SQ) had bought $170 million worth of bitcoin was not enough to keep its stock from falling following Q4 earnings. The payment solutions specialist missed estimates on earnings of $0.04 per share, but beat on revenue of $3.16 billion, while its flagship Cash App brought in $2.17 billion of this revenue thanks to increased trading last year. The company also announced that it has purchased 3,318 bitcoin for about $170 million, which, added to its prior purchase of $50 million, now represents 5% of its total cash, cash equivalents, and marketable securities. See the full press release here.
2. Investors were left scratching their heads about whether to be happy or not following Home Depot’s (HD) Q4 earnings report yesterday. On the one hand, the company handily beat analysts’ estimates with overall net sales soaring 25.1% YoY to $32.3 billion and earnings hitting $2.65 per share. On the other hand, the company also warned shareholders that it could not predict if its pandemic-induced sales dream run from last year will continue into 2021 and refused to give any financial outlook for the year. Read the official press release here.
3. Having just confirmed that it will begin monetizing podcasts, Spotify (SPOT) revealed further plans for world domination on Tuesday. Despite its stock falling 3.8% due to a market-wide sell-off, the company’s ambition to almost double its geographic footprint by launching in 85 new countries with 36 additional languages should excite investors. “These moves represent Spotify’s broadest market expansion to date,” Spotify said, as it will soon become available in over 170 countries, marking an important milestone in its ongoing head-to-head with Apple (AAPL). Read the full story here.
Some more earnings from last night:
The financial software leader scraped past analyst estimates to report diluted quarterly earnings of $0.68 per share on revenue of $1.58 billion — down 7% YoY. CEO Sasan Goodarzi reaffirmed his confidence that small businesses would continue to deliver double-digit revenue growth in 2021 as the economy seeks to bounce back in a post-COVID world. Read the official press release here.
There are 5 companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.