Friday’s Headlines: Square And Jay-Z Team Up

Friday’s Headlines: Square And Jay-Z Team Up

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Eventbrite (EB) +2.9%

Google (GOOG) +1.1%

Facebook (FB) +0.9%

Boston Beer Co. (SAM) +0.8%

Diageo (DEO) +0.7%

Moving Down ⬇️

Yext (YEXT) -12.0%

PagerDuty (PD) -8.8%

Redfin (RDFN) -8.7%

Sea Limited (SE) -8.6%

Zillow (Z) -8.5%

1. One of Jay-Z’s 99 problems was just solved as Square (SQ) announced it's buying a majority stake in his struggling music streaming service, Tidal, and adding the rapper to its board. Square said the $297 million deal will shake up the music economy by allowing artist-partners to keep financial ownership of their music. Square CEO Jack Dorsey expected the news to generate skepticism but believes the merger can replicate the success of Cash App in the world of music, noting that “new ideas are found at the intersection.” Investors are less certain though as Square shares were down over 5% yesterday following the announcement. See more on the story here

2. Costco (COST) shares fell late on Thursday after the retailer reported mixed quarterly earnings due in part to raising wages to $16 an hour during the pandemic. The second largest retailer in the world reported adjusted earnings of $951 million, or $2.14 per share, missing estimates of $2.45 while revenue of $44.77 billion exceeded forecasts. Costco increased membership fees during the quarter, which accounted for $881 million of total revenue, versus $816 million a year ago. The Washington-based company benefited from a strong holiday season and a continuation in the stay-at-home trend, with total comparable sales rising 13% and e-commerce sales up nearly 76%. Read the full press release here

3. EU antitrust regulators have just finalized a charge sheet against Apple (AAPL), the fourth case of its kind against the iPhone maker. The allegations were triggered by a complaint from Spotify and could result in Apple having to change its highly lucrative App Store business model. The Swedish streaming company accused Apple of unfairly restricting rivals in order to push Apple Music by taking a 30% cut of Spotify’s subscription fees for featuring on the App Store — allowing it to undercut its rivals on price. Spotify also complained that denying its competitors the right to tell its users about other ways of upgrading was also unfair. Read the full story here.

Some more earnings from yesterday: 

Baozun (BZUN)
Shares in the China-based company fell yesterday after revenues of $512.9 million, up 20% from the year-ago quarter, missed estimates. Chief Financial Officer Arthur Yu was still optimistic though, commenting: “As we look back at 2020, we demonstrated good execution of our growth strategy, which was reflected in our 22% year-over-year increase in net revenues.” Read the full press release here

Chuy's (CHUY)
The restaurant operator posted adjusted earnings of $0.19 per share on revenue of $78.7 million, down from $102 million in the year-ago period. Comparable restaurant sales decreased 18.3% as the company said they “were negatively impacted by closures of dining rooms due to COVID-19 restrictions as well as reduced traffic during the Thanksgiving week.” See the full press release here.   

The beleaguered cinema group came out with a quarterly loss of $0.21, posting revenues of $55.99 million compared to year-ago revenues of $124.28 million. It wasn’t all bad news though as the company said strong box office sales across Asia offered encouraging signs of pent-up demand for movie screenings, stating: “This promising trend is reflected in our consistent financial improvement since the start of the pandemic.” See the full earnings release here

Get this week’s full earnings calendar here.


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