Wednesday’s Headlines: PayPal Goes All In On Bitcoin
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Lemonade (LMND) +7.5%
Baozun (BZUN) +7.2%
RH (RH) +6.0%
iRobot (IRBT) +5.4%
Sea Limited (SE) +4.9%
Moving Down ⬇️
FactSet (FDS) -3.9%
Arista Networks (ANET) -2.9%
American Tower (AMT) -1.9%
Costco (COST) -1.8%
2U (TWOU) -1.6%
1. On another big day for Bitcoin, PayPal (PYPL) announced on Tuesday that it will begin allowing its U.S.-based merchants to accept cryptocurrency payments. Customers who hold Bitcoin, Ether, Bitcoin Cash, and Litecoin in PayPal digital wallets will now be able to convert their holdings into fiat currencies at checkouts to make purchases, the company said. “This is the first time you can seamlessly use cryptocurrencies in the same way as a credit card or a debit card inside your PayPal wallet,” President and CEO Dan Schulman reported yesterday. Read the full story here.
2. Lululemon (LULU) held its Q4 earnings conference last night where it topped analysts’ estimates across the board. Earnings per share (EPS) of $2.58 on revenue of $1.73 billion represented a 24% spike in sales year-over-year (YoY), boosted largely by a 92% surge in online sales as e-commerce trends continue to dominate the retail sector. Despite some cautious warnings that a resurgence in COVID-19 cases could harm business further, Lululemon is still confident that it can reach its upbeat 2021 sales target of between $5.55 billion and $5.65 billion. Read the official press release here.
3. If video didn’t kill the radio star, then Spotify’s acquisition of Betty Labs might do the trick. Betty Labs is the maker of live audio social app ‘Locker Room’, which focuses on live sports, as well as Lightspeed Ventures, which will help Spotify cash in on the popularity of social audio features following the rise of Clubhouse. Spotify said on Tuesday that this acquisition will help it leverage the company’s “unparalleled data, insights, and strength in user experience, to build-out a full complement of live and on-demand offerings for users and creators across the globe.” Read the official news release here.
Some more earnings from last night: FactSet (FDS)
Shares in the financial data firm fell 4% on Tuesday following an earnings miss on adjusted EPS of $2.72 on revenue of $391.8 million — an increase of 6% YoY. CEO Phil Snow was optimistic, despite the miss, stating that the company’s “focus on digital transformation, content expansion, and being an open platform continues to resonate with our clients as they navigate a rapidly evolving landscape.” Read the official press release here.