Thursday’s Headlines: Buffett’s Second Has His Say
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Duluth Trading (DLTH) +8.0%
Tripadvisor (TRIP) +7.6%
Tesla Motors (TSLA) +6.2%
Planet Fitness (PLNT) +5.6%
Ford Motor Company (F) +5.6%
Moving Down ⬇️
Square (SQ) -7.5%
Nautilus (NLS) -7.2%
Baozun (BZUN) -4.0%
MercadoLibre (MELI) -3.5%
1. When Berkshire Hathaway (BRK.B) vice-chairman Charlie Munger says something about the market, investors tend to listen. When asked about Bitcoin’s price and Tesla’s (TSLA) market cap in an interview with the Daily Journal yesterday, Munger said, “I don’t know which is worse,” elaborating that “I don’t think bitcoin is going to end up the medium of exchange for the world. It’s too volatile to serve well as a medium of exchange.” Tesla bulls appear not to value the seasoned investor’s thoughts though, with shares in the EV maker jumping 6% on Tuesday to break a 3-day losing streak. Though we cannot link the original article for geographical reasons, you can read the highlights here.
2. Following a drawn-out and embarrassing row with the Australian government, Facebook (FB) has done a U-turn and pledged to invest at least $1 billion into the news industry over the next three years. The move comes after the social network struck a deal with the Australian government that allows Facebook to retain the ability to decide what news it is willing to pay for to appear on its platform. According to both parties, the issue has now been resolved, but it is unclear whether there was any real winner as Australia has not regained total control, and Facebook has suffered a PR disaster. For a full report on the confusing issue, you can read this blog by Nick Clegg here.
3. Shares in Teladoc (TDOC) are down after-hours following the unveiling of a wider-than-expected fourth-quarter loss. Teladoc incurred a net loss of $394 million, or $3.07 per share, in the latest quarter, widening from $19 million, or $0.26, in the year-earlier quarter — though much of these costs are related to its merger with Livongo in October. There was still much to be optimistic about, with revenue more than doubling year-over-year to $383.3 million, and Chief Executive Jason Gorevic claiming that the company “exceeded our fourth-quarter and full-year 2020 expectations and see strong momentum across our global business in 2021.” You can read the full press release here.
Some more earnings from last night:
Booking Holdings (BKNG)
It might come as no surprise that the travel agency’s revenue fell 63% YoY to $1.24 billion, with losses per share of $0.57 — though this still far surpassed analyst estimates. Though no guidance was given, CEO Glen Fogel did attribute better-than-expected results and cause for optimism to improvements in booking trends over recent weeks thanks to continued vaccine hopes. Read the official press release here.
MyWallSt’s latest stock addition beat Q4 expectations with revenue of $244.5 million, up 5% year-over-year, and earnings per share of $0.11. A hot real estate market helped Redfin’s monthly active visitors grow to a record 44.1 million and helped make it the fastest-growing major real estate website, according to CEO Glenn Kelman. Read the official press release here.
Retail Opportunity Investments Corp (ROIC)
The real estate investment trust surpassed Wall Street estimates for Q4 with earnings of $0.27 per diluted share on revenue of $34.3 million. CEO Stuart Tanz had a lot of praise for the company: “During 2020, in the face of extraordinary circumstances, our portfolio of grocery-anchored shopping centers proved to be resilient and we continued to post solid operating results.” Read the official press release here.
TrueCar Inc on Wednesday reported fourth-quarter revenue of $64 million and adjusted losses per share of $0.01, but swang to a profit for the full year of $77.7 million. The company goes into 2021 with a lot of tailwinds, including a Navy Federal partnership and the roll-out of its Deal Builder experience, which it believes will make it the industry leader in online car buying solutions. Read the official press release here.
There are 9 companies on the MyWallSt shortlist that will report earnings today:
American Tower (AMT)
Evolent Health (EVH)
Howard Hughes Corp (HHC)
Monster Energy (MNST)
Get this week’s full earnings calendar here.