Twilio's “Meaningful Changes”
And, Shopify’s disappointing outlook.
Today is Thursday, February 16, 2023.
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Twilio's “Meaningful Changes”
Analysts expected Twilio (NYSE: TWLO) to post a loss, but the company delivered a surprise profit. As a result, the stock price jumped by 12.49% in after-hours trading on Wednesday.
Financials: Twilio reported earnings of 22 cents per share and revenue of $1.02 billion; both were better than expected.
Outlook: The company expects to report revenue between $995 million to $1.005 billion in the current quarter and earnings between 18 cents to 22 cents per share; both were better than what analysts had expected.
Background: Twilio made what its CEO called “meaningful changes” to the company this week, including changes to the organizational structure and a 17% workforce reduction announced on Monday.
Final Thoughts: Twilio’s stock is down 64% in the last 12 months, but is up 19% in the last 30 days. The company hopes that its future is brighter than its past.
Notable Earnings Today: Crocs (Nasdaq: CROX), Scorpio Tankers (NYSE: STNG), DraftKings (Nasdaq: DKNG), Datadog (Nasdaq: DDOG), Applied Materials (Nasdaq: AMAT), ShockWave Medical (Nasdaq: SWAV), Paramount Global (Nasdaq: PARA), Southern (NYSE: SO), DoorDash (NYSE: DASH), PBF Energy (NYSE: PBF), Star Bulk Carriers (Nasdaq: SBLK), Hasbro (Nasdaq: HAS), Stem (NYSE: STEM), Digital Realty Trust (NYSE: DLR), Redfin (Nasdaq: RDFN), Cenovus Energy (NYSE: CVE), Indie Semiconductor (Nasdaq: INDI), Shake Shack (NYSE: SHAK), HubSpot (NYSE: HUBS), Alkermes (Nasdaq: ALKS), Agnico-Eagle Mines (NYSE: AEM),BJ Restaurants (Nasdaq: BJRI), Bloomin' Brands (Nasdaq: BLMN), Chuy's Holdings (Nasdaq: CHUY), Cohu (Nasdaq: COHU), Constellation Energy (Nasdaq: CEG), ConEdison (NYSE: ED), DigitalOcean Holdings (NYSE: DOCN), Dropbox (Nasdaq: DBX), Entergy (NYSE: ETR), Henry Schein (Nasdaq: HSIC), Hyatt Hotels (NYSE: H), Laboratory Corp (NYSE: LH), Organon (NYSE: OGN), Pool (Nasdaq: POOL), Texas Roadhouse (NasdaqGS: TXRH), Tower Semiconductor (Nasdaq: TSEM), US Foods (NYSE: USFD), Vulcan Materials (NYSE: VMC), WeWork (NYSE: WE), Zebra Technologies (Nasdaq: ZBRA).
Notable IPOs Today: N/A.
Notable Equity Crowdfunding Campaigns Ending Today: Bainbridge Distillers (StartEngine), Loftie (StartEngine).
Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Produce Price Index (8:30 a.m. ET), Building Permits (8:30 a.m. ET), Philadelphia Fed Manufacturing Index (8:30 a.m. ET), Housing Starts (8:30 a.m. ET).
Shopify’s Disappointing 2023 Outlook
A poor financial outlook caused shares of Shopify (NYSE: SHOP) to drop by 10.21% in after-hours trading on Wednesday.
Financials: Shopify reported revenue of $1.73 billion in the past quarter, which was better than expected.
Outlook: The company anticipates revenue growth in the high-teen percentages in the current quarter, which was lower than expected. Shopify sees elevated inflation and caution around consumer spending.
Final Thoughts: Thanks to macroeconomic challenges, it’s a bad time to support e-commerce stocks.
Roku Grows Active Accounts
Shares of Roku (Nasdaq: ROKU) grew by 10.41% in after-hours trading on Wednesday after posting positive financial earnings for the quarter.
Financials: Roku reported a loss of $1.70 per share in the quarter and revenue of $867 million; both were better than expected.
Final Thoughts: A combination of strong guidance and new active accounts propelled Roku’s stock price.
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Trends to Watch
Increasing Sales: Cisco Raises Outlook as Its Earnings Top Expectations (The Wall Street Journal)
Trapped: Crypto Investors Had Their Funds Frozen. Now They Might Have to Pay Taxes Too (Bloomberg)
Higher: Bitcoin Soars Past $24K to Reach 2-Week High (CoinDesk)
Home Sweet Home: Zillow Beat Earnings Estimates. The Stock Is Rising. (Barron’s)
Power Up: Tesla Will Open Some Chargers to All Electric Vehicles (The New York Times)
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