Thursday’s Headlines: Tech Takes Another Dive
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Cognex (CGNX) +2.2%
Mastercard (MA) +1.2%
The Home Depot (HD) +1.0%
FedEx (FDX) +0.6%
Moving Down ⬇️
Peloton Interactive (PTON) -10.2%
Etsy (ETSY) -9.3%
Sea Limited (SE) -8.8%
Baozun (BZUN) -8.2%
Stitch Fix (SFIX) -8.0%
1. Tech led the way once more in a market-wide sell-off on Wednesday that saw all three major indexes close in the red. Despite rising during the day, the S&P 500 (VOO) fell 0.8%, the Dow dropped marginally, while the tech-heavy Nasdaq fell 2%, led by big losses from the likes of Apple (AAPL) and Tesla (TSLA). The panic selling appears to be purely COVID-related, with rising cases worldwide causing widespread pessimism about how soon the global economy can get back to normal. Read the full story here.
2. Perhaps it’s a coincidence, perhaps it’s not, but Disney’s (DIS) share price dropped more than 2% yesterday after announcing its first streaming price hike. Alas, the honeymoon period with Disney+ comes to an end, with all packages across its streaming rising by $1 per month following a string of successes on the platform which include Marvel’s ‘Wandavision’ and Pixar’s ‘Raya and The Last Dragon’. Nevertheless, its basic $7.99 per month package price is now catching up on Netflix’s basic $8.99 per month plan, narrowing Disney’s competitive advantage mere weeks after it surpassed 100 million subscribers. Read the full story here.
3. Despite reporting fourth-quarter earnings and sales that topped Wall Street estimates, furniture retailer RH (RH), fell 4.6% yesterday. Formerly Restoration Hardware, the company reported Q4 earnings per share (EPS) of $5.07 on revenue of $813 million, versus expectations of $4.76 per share on revenue of $798 million. CEO Gary Friedman was wildly optimistic about the results, stating: “The fact that we have a booming housing market, a record stock market, low interest rates, the expectation of a rebound in the economy and jobs market, combined with the recent further acceleration in our demand trends, has us feeling more rather than less optimistic.” Read the official press release here.