Tuesday’s Headlines: Zoom Sales Surge 369%
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Etsy (ETSY) +11.0%
Zoom Communications (ZM) +9.6%
Eventbrite (EB) +8.4%
GoPro (GPRO) +8.3%
Stitch Fix (SFIX) +6.9%
Moving Down ⬇️
TrueCar (TRUE) -4.4%
Evolent Health (EVH) -3.0%
Wix (WIX) -2.3%
Planet Fitness (PLNT) -1.7%
1. Zoom (ZM)’s rocket ride to the moon resumed yesterday, with shares jumping almost 10% after the company reported booming revenue and strong guidance for 2021. The video-conferencing company recorded adjusted earnings of $1.22 per share on revenue of $882.5 million, up 369% year-over-year (YoY). Zoom became a lifeline for those stuck at home during the pandemic which helped the company edge close to adjusted profits of almost $1 billion last year after only clearing $101.3 million in 2019. Zoom also posted growth in small customers, saying it had 467,100 customers with more than 10 employees at the end of Q4 — up 470% for the year — and had over 1 million paying seats for its new virtual call service, Zoom Phone. Read the full press release here.
2. Apple (AAPL) stock had its best day since October yesterday, rising over 5% after an endorsement from Warren Buffett and an announcement from the iPhone maker that 270 of its U.S. stores are reopening. Buffett stated in his annual letter to investors that Berkshire Hathaway (BRK.B) owns 5.4% of Apple’s stock, making it the firm’s third-most valuable asset. The billionaire investor also praised the technology company’s approach to dividends and share buybacks, writing: “Berkshire’s investment in Apple vividly illustrates the power of repurchases.” Apple’s success in 2020 largely offset damage from COVID-19 to Buffett's railroad and insurance investments. Read more on the story here.
3. Tesla (TSLA)'s rival NIO says that global chip shortages will force the EV maker to manufacture fewer cars in the second quarter. In NIO’s quarterly earnings call today, founder William Li said that production capacity reached 10,000 vehicles a month in February, but chip shortages will force it to fall back to 7,500 levels. The CEO is still optimistic that production levels will rise again by July, with the potential to double by early 2022 to 300,000 units a year. NIO is not alone, other major automakers including General Motors and Ford Motor Company (F) have also explained that demand for electronics has pressured U.S.-China trade tensions contributing to a global backlog in chip manufacturing. See more on the story here.
1 more earning from last night:
The mobile-based insurance company’s shares declined after the bell last night, despite beating earnings expectations with a fourth-quarter loss of $33.9 million, or $0.60 per share, compared with a loss of $32.7 million in the year-ago quarter. The sell-off can be attributed to a weaker outlook for the coming quarter, with expected revenue of $21.5 million where analysts had forecast for $22.1 million. Read the full press release here.
There are 3 companies from the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.