Today is Thursday, April 14, 2022.
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Rent the Runway's 2022 Goals
Shares of Rent the Runway (Nasdaq: RENT) fell 1.92% in after-hours trading on Wednesday after the apparel and accessories platform posted disappointing guidance in its earnings report.
Financials: Rent the Runway posted a 62-cent loss per share and total revenue of $64.1 million in the quarter; both were better than expected.
The Good: Total subscribers increased 68% year-over-year and active subscribers grew 110%. Gross margins also increased as well.
The Bad: The company’s annual revenue guidance was in the range of $295 million to $305 million, which was slightly below estimates. The net loss in the quarter also increased year-over-year.
Numbers: Shares of Rent the Runway are down 70% in the past six months, but are up 16% in the past 30 days.
Quote: “We look forward to capitalizing on one of the strongest potential macro environments for rental we’ve seen in recent years, with an outsized pipeline of weddings and social occasions in 2022, return to work and a resurgence of general social activity.” - Jennifer Hyman, CEO and Co-Founder of Rent the Runway.
Final Thoughts: Rent the Runway is increasing its prices to deal with inflation. Will this be enough for the company to achieve profitability?
Notable Earnings Today: UnitedHealth Group (NYSE: UNH), Taiwan Semiconductor (NYSE: TSM), Helbiz (Nasdaq: HLBZ), Wells Fargo (NYSE: WFC), Goldman Sachs (NYSE: GS), Citigroup (NYSE: C), Morgan Stanley (NYSE: MS), Rite Aid (NYSE: RAD), PNC Financial Services (NYSE: PNC), Ally Financial (NYSE: ALLY), Ericsson (Nasdaq: ERIC), Lakeland Industries (Nasdaq: LAKE), State Street (NYSE: STT), Sundial Growers (Nasdaq: SNDL), U.S. Bancorp (NYSE: USB).
Notable IPOs Today: Sharps Technology Inc. Common Stock (Nasdaq: STSS), Lytus Technologies Holdings PTV. Ltd. Common Shares (Nasdaq: LYT), Goldenstone Acquisition Limited Common Stock (Nasdaq: GDST), Lakeshore Acquisition II Corp. Ordinary Shares (Nasdaq: LBBB).
Notable Equity Crowdfunding Campaigns Ending Today: FreightPal (Republic), NODABL Network (Fundify).
Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Retail Sales (8:30 a.m. ET), Import Price Index/Export Price Index (8:30 a.m. ET), Michigan 5-Year Inflation Expectations (10:00 a.m. ET), Michigan Consumer Sentiment (10:00 a.m. ET), Business Inventories/Retail Inventories (10:00 a.m. ET).
Mercedes-Benz Sets Lofty Electric Vehicle Agenda
Details: Markus Schaefer, the CTO, made the comments this week after the company test drove a new electric vehicle prototype.
Numbers: Shares of Mercedes-Benz went up 2% Wednesday, but are down 29% in the past six months.
Final Thoughts: Mercedes-Benz tripled its electric vehicle sales in the last quarter? Can the company keep it up?
How Equity Crowdfunding Can Grow
Equity crowdfunding has emerged as a new opportunity for retail investors, but how can this new form of investing become more popular?
Partnerships: Equity crowdfunding platforms should partner with a mainstream stock investing platform. This could be a good source of promotion.
Successful Exits: When a startup that raised money with equity crowdfunding has a successful exit, then it would be wise for equity crowdfunding platforms to promote how those retail investors got a good return.
More Advertising: It goes without saying that more advertising will do wonders for equity crowdfunding’s awareness.
Final Thoughts: Equity crowdfunding can hopefully become more mainstream in the future, but it has ways to go.
Trends to Watch
Keeping Waiting: Ethereum Merge No Longer Expected in June (CoinDesk)
Expensive Delivery: Amazon is adding a 5% fuel and inflation surcharge (CNN)
Expansion: Google to Invest $9.5 Billion in U.S. Offices, Data Centers (The Wall Street Journal)
Bearish: Cryptocurrencies may all ‘come crashing down’ (Yahoo! Finance)
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