Wednesday’s Headlines: Square Is Coming For Big Banks
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Nautilus (NLS) +6.7%
Tripadvisor (TRIP) +6.7%
TrueCar (TRUE) +5.0%
Ford Motor Company (F) +4.8%
Square (SQ) +4.6%
Moving Down ⬇️
Lemonade (LMND) -16.6%
Zoom Communications (ZM) -9.0%
ShotSpotter (SSTI) -8.4%
Roku Inc. (ROKU) -7.3%
iRobot (IRBT) -5.8%
1. Shares in Square (SQ) popped close to 5% on Tuesday after the company officially launched operations of Square Financial Services (SFS). This new, wholly Square-owned bank is actually governed independently from the Jack Dorsey-run business and licensed by the Federal Deposit Insurance Corporation and the Utah Department of Financial Institutions. It will offer business loans and be the primary provider of financing for Square sellers across the U.S., the company said, creating an expansive eco-system for its users to build and develop their businesses. Read the full story here.
2. Digital gaming, e-commerce, and payment solutions leader, Sea Limited (SE) posted a fresh round of blowout earnings for investors to salivate over yesterday. In e-commerce, revenue surged 178.3% to $842.2 million and gross merchandise volume rose 112.5% to $11.9 billion, while in digital entertainment, revenue was up 71.6% to $693.4 million — total revenue jumped 101.6% to $1.6 billion. With an adjusted net profit of $48.7 million compared to losses a year before, Sea Limited is optimistic about 2021, when it will launch the investment arm of its business: Sea Capital. Read the official press release for more here.
3. Shares in Wix (WIX) rose on Tuesday after the website management firm announced its acquisition of SpeedETab. The Jerusalem-based company believes that the acquisition will help elevate its Wix Restaurant unit, which creates and manages a full-service restaurant platform for restaurant owners by offering online services like taking orders, reservations and payments. No financial details related to the deal have been disclosed yet, but Wix is in a confident mood right now after announcing 200 million users at last week’s earnings call. Read more here.
Some more earnings from last night:
Nordstrom topped analyst estimates on Tuesday with earnings of $0.21 per share on revenue of $3.65 billion, despite total revenue falling 20% year-over-year (YoY). CEO Erik Nordstrom was confident in the company’s ability to continue driving sales via a move to e-commerce, attributing the retailer’s ability to keep its head above water in 2020 to its resilience and adaptability. Read the official press release here.
Veeva Systems (VEEV)
The life-sciences cloud-software company’s results and outlook topped Wall Street estimates with full-year revenue of $1.46 billion, up 33% YoY, and diluted earnings per share of $0.64. Further growth is to be expected if CFO Brent Bowman’s words are taken seriously, as he stated: “We are investing aggressively for the sizable market opportunity we see across all our major product areas.” Read the official press release here.
There are 3 companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.