Wednesday’s Headlines: Google Cuts App Store Fees
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Huazhu Hotels Group (HTHT) +5.0%
GoPro (GPRO) +4.7%
Take-Two Interactive (TTWO) +2.3%
Starbucks (SBUX) +2.2%
RH (RH) +2.2%
Moving Down ⬇️
IMAX (IMAX) -9.2%
Stitch Fix (SFIX) -5.7%
Ford Motor Company (F) -5.4%
Bill.com (BILL) -4.4%
Tesla Motors (TSLA) -4.4%
1. Google (GOOG) has had enough of being the bad guy it seems. The search giant announced yesterday that it will half the 30% commission it takes from app developers for selling goods and services on Google Play — but only for the first $1 million of revenue a developer earns each year. The decision comes amid an ongoing legal stand-off between Epic Games and Google and Apple (AAPL), which introduced an identical fee cut in January, with Epic claiming that the commission amount paid to the tech firms is an abuse of power resulting from their dominant position in the market. Read the full report here.
2. Shares in Ford Motors (F) fell 5.4% on Tuesday after the company announced a $2 billion convertible notes offering. The automaker confirmed that it intends to use the net proceeds from the five-year bond offering — due in 2026 — for infuriatingly vague “general corporate purposes”, as well as possible debt repayment. With $24 billion in debt as of the end of 2020, the move makes sense for the company, but it is not a good sign for investors as it could also signal the potential dilution of shares in the future. For more information on the story and what convertible bonds are, read here.
3. Following years of limited and poor service in Africa, PayPal (PYPL) is finally dipping its toe into this underutilized market. The payment solutions company revealed on Tuesday a new partnership with African payments provider, Flutterwave, which will see its ‘Pay with PayPal’ feature become available to businesses across 50 African countries. As one of the world’s fastest-growing tech hubs, Africa has been largely ignored by the big names in Silicon Valley, but movement into the space could provide PayPal with an opportunity to claim some market share on a continent with more than 1.2 billion people. Read the complete story here. Some earnings from last night:
Coupa Software (COUP)
The California-based firm on Tuesday reported a loss of $61.4 million, or $0.85 per share in its fiscal fourth quarter, surpassing analyst expectations. Spirits were high at the earnings call: “This year, we delivered record financial results across all key measures amid a difficult macroeconomic environment,” said Rob Bernshteyn, chairman and CEO at Coupa. Read the official press release here.
Despite reporting a quarterly loss of $0.04 per share, Smartsheet exceeded analyst expectations on earnings and revenue of $109.87 million — up 40% year-over-year (YoY). The company’s outlook was optimistic moving into the new year, predicting total revenue of $111 million to $112 million, representing year-over-year growth of 30% to 31%. Read the official press release here.
There is 1 company on the MyWallSt shortlist that will report earnings today: