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PepsiCo Copies Facebook's Plan

PepsiCo Copies Facebook's Plan

December 06, 2022

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PepsiCo Copies Facebook's Plan

Just like other recent big technology companies, it seems that PepsiCo (Nasdaq: PEP) is poised to downsize its staff.

Details: A report in The Wall Street Journal on Monday said that PepsiCo is laying off hundreds of workers from its North American snacks and beverages divisions. PepsiCo has not commented on the report.

Stock Price: Shares of Pepsi are up 5% this year and the stock ticked up 0.13% in after-hours trading on Monday.

Bigger Picture: For weeks, investors believed that layoffs were only in the tech industry. Well, this proves that this round of downsizing will also hit other industries. The broader economy is far from perfect. Many experts see the U.S. facing a recession in 2023.

Final Thoughts: PepsiCo has had a quietly good year. The annual dividend yield is 2.51%. PepsiCo will likely report its next financial earnings in January.

Notables

Notable Earnings Today: Stitch Fix (Nasdaq: SFIX), AutoZone (NYSE: AZO), MongoDB (Nasdaq: MDB), Signet Jewelers (NYSE: SIG), SentinelOne (NYSE: S), Hepsiburada (Nasdaq: HE{S), Dave & Buster's (Nasdaq: PLAY), Couchbase (Nasdaq: BASE), Smith & Wesson Brands (Nasdaq: SWBI), Conn's (Nasdaq: CONN), Casey's General (Nasdaq: CASY), J.Jill (NYSE: JILL), Alico (Nasdaq: ALCO), HealthEquity (Nasdaq: HQY), Guidewire (NYSE: GWRE), Waterdrop (NYSE: WDH), Toll Brothers (NYSE: TOLL), Lilium (Nasdaq: LILM), Avid Bioservices (Nasdaq: CDMO), AeroVironment (Nasdaq: AVAV).

Notable IPOs Today: KWESST Micro Systems Inc. Common Stock (Nasdaq: KWE), Erayak Power Solution Group Inc. Class A Ordinary Shares (Nasdaq: RAYA).

Notable Equity Crowdfunding Campaigns Ending Today: BlissDivorce (Wefunder), MicroSilicon (StartEngine).

Notable Economic Events Today: Trade Deficit (8:30 a.m. ET), EIA Short-Term Energy Outlook (12:00 p.m. ET), API Weekly Crude Oil Stock (4:30 p.m. ET).

GitLab’s Value Proposition

Photo by Luca Bravo / Unsplash

Shares of GitLab (Nasdaq: GTLB) soared 19.51% in after-hours trading on Monday after the software company posted financial earnings results.

Financials: GitLab reported a loss of ten cents per share and revenue of $112.98 million; both were better than expected.

Growth: Revenue shot up 69% year-over-year. The number of customers with more than $100,000 in annual recurring revenue jumped 49% and the number of customers with more than $5,000 in annual recurring revenue jumped 59%.

Outlook: Gitlab expects revenue in the current quarter to be between $119 million to $120 million and for the full year to be between $420.5 million to $421.5 million; both projections were better than expected.

Quote: “Our Q3 business results demonstrate GitLab’s value proposition as a mission critical DevSecOps platform for software innovation is resonating.” - Sid Sijbrandij, GitLab CEO and Co-Founder.

Final Thoughts: These were strong financial results for GitLab. The future looks bright, but keep in mind that the stock is down 52% this year and the company is still not profitable.