Spot Ethereum ETF Approval

Plus, Workday's "sales scrutiny."

May 24, 2024

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Spot Ethereum ETF Approval

In a major victory for cryptocurrency investors on Thursday, the U.S. Securities and Exchanges Commission approved forms filed by multiple issuers hoping to launch spot Ethereum ETFs (exchange-traded funds).

Details: The SEC approved 8 ETFs, including Grayscale, Bitwise, Invesco, VanEck, ARK 21Shares, Fidelity, and Franklin Templeton.

Definition: A spot Ethereum ETF (or spot Ether ETF) is a fund that gives traditional investors direct exposure to Ethereum. It is different than a futures ETF, which tracks Ethereum futures contracts.

Background: In January, the SEC approved spot Bitcoin ETFs.

Powering the Story: Investors now have more opportunities to add crypto to their portfolios through these ETFs.

Final Thoughts: The big question is what will be the next cryptocurrency to get a spot ETF?

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Notables

Notable Earnings Today: Booz Allen Hamilton (NYSE: BAH).

Notable IPOs Today: N/A.

Notable Equity Crowdfunding Campaigns Ending Today: Decaffe Republic (Honeycomb), The Green Kitchen (Honeycomb), Contractor+ (Wefunder), Catan Pisco (Wefunder), Nootropics Expert (OverSubscribe).

Notable Economic Events Today: Durable Goods Orders / Core Durable Goods Orders (8:30 a.m. ET), Michigan Consumer Sentiment / Expectations (10:00 a.m. ET).

Workday's "Sales Scrutiny"

Source: Workday

Good financial results for Workday (Nasdaq: WDAY) on Thursday couldn’t save the enterprise software vendor from plummeting by 11.23% in after-hours trading.

Financials: Workday reported earnings of $1.74 per share in the past quarter and revenue of $1.99 billion; both were better than expected.

Details: Revenue increased 18.1% in the quarter. The company also raised its margin outlook.

Powering the Story: The company lowered its full-year subscription revenue guidance to the range of $7.700 billion to $7.725 billion.

Quote: “Our updated subscription revenue guidance reflects the elevated sales scrutiny and lower customer headcount growth we experienced during the quarter.” - CFO Zane Rowe.

Stock Price: Workday was down 2.75% in 2024 before these results.

Final Thoughts: As enterprises cut down on staff and subscriptions, Workday is feeling the pain.

Intuit’s Disappointing Outlook

Despite posting better-than-expected financials on Thursday, Intuit (Nasdaq: INTU) fell 6.46% in after-hours trading.

Financials: Intuit reported earnings of $9.88 per share in the past quarter and revenue of $6.7 billion; both were better than expected.

Outlook: The company raised its full-year guidance to reflect growth of 13%, but investors wanted more.

Final Thoughts: Intuit is up 9% this year, but investors don’t like the outlook.

No Fly Zone: Boeing Says Cash Flow Is Worse Than It Thought (Wall Street Journal)

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.