Watch us on YouTube Live at 8:30AM EST
Crypto Stocks – Lower as a group besides Silvergate Capital(see below), the moves follow steep losses in bitcoin late yesterday after Tesla’s boss said the company will stop accepting the digital currency as payment for its cars, Crypto exchange operator Coinbase is down 5.5%, while crypto miners Riot Blockchain and Marathon Digital Holdings both plummet more than 13% each. BTC prices plunged 17% after TSLA CEO Elon Musk cited environmental concerns over power consumed by bitcoin mining for the rollback on the company’s policy to accept the digital currency, Musk said Tesla will still hold Bitcoin until the environmental impact of from the currency is lessened. MARA, RIOT, SOS, BTBT, BTCC.B, MSTR, COIN
Bumble Inc – In its second earnings report since going public the dating app developer posted a surprise profit in the first quarter as sales more than doubled, due to an impressive uptick in paying users. The company reported revenues of $323.4 million compared to a loss of $55.8 million one year ago. Total paying users climbed to 2.8 million, representing a 30% year-over-year increase. Bumble disclosed 42 million monthly active users in its January prospectus, but has since decided not to break out the metric.
Silvergate Capital Corp – Trading sharply higher premarket after announcing the company will be the exclusive issuer of US Dollar backed stablecoins by Diem, the permissioned blockchain-based payment system proposed by the American social media company Facebook, Inc. The plan also includes a private currency implemented as a cryptocurrency. The currency and network do not yet exist.
Tesla Inc – Shares are lower in premarket trading following the move by the company to stop accepting BTC in exchange for payment for its cars. Musk said the EV maker will not accept payment in bitcoin any more due to long-brewing environmental concerns in a swift reversal in the company’s position on the cryptocurrency. In a follow-up tweet on Thursday morning, Musk shared a chart tracking bitcoin’s electricity consumption saying “Energy usage trend over past few months is insane.”
Alibaba Group Holdings – Reported a forecast-beating 64% surge in quarterly revenue on Thursday, as more people shopped online due to the coronavirus pandemic. But the strong performance was overshadowed by intense regulatory crackdown that resulted in the suspension of a $37 billion IPO of its affiliate Ant Group and a $2.8 billion fine for anti-competitive business practices. Net loss attributable to ordinary shareholders was 5.48 billion yuan, or 1.99 per American depository share (ADS), compared with a profit of 3.16 billion yuan, or 1.16 yuan per ADS, a year earlier.
Xpeng Inc – Higher this morning after the Chinese EV maker reported better than expected Q1 results including record vehicle deliveries. The company reported EPS of -$0.13 beating by $0.07/share. Revenue of $450.4M missed by $15.38M. Deliveries of vehicles reached 13,340 in the first quarter of 2021, representing an increase of 487.4% from 2,271 in the corresponding period of 2020 and an increase of 2.9% from 12,964 in the fourth quarter of 2020.
Sonos Inc – Reported record fiscal second quarter profit as adjusted EPS of 12 cents per share topped expectations for a loss of 22 cents per share. Revenue rose 90.2% to $332.95 million from a year ago; analysts expected $248.41 million. The company reported quarterly net income of $17.22 million.
Big Tech – Back on watch this morning looking to rebound coming off a three session slide pressured further by the surprise increase in April inflation data we got premarket. Rosenblatt Securities initiates coverage on MSFT shares with a “Buy” rating and a $301 PT. MSFT also announced it will shutter its Azure Blockchain Service this fall. FB, AMZN, AAPL, MSFT, NFLX, GOOGL
Lemonade Inc – Extending losses from Wednesday’s session this morning following an earnings miss from the insurance provider. Piper Sandler cuts its PT on the stock to $103 from $134.
ContextLogic Inc – Multiple downgrades on the stock today following a quarterly adjusted loss of 21 cents per share vs expectations of a loss of 18 cents per share. Revenue was $772.00 million; analysts expected $743.09 million. ContextLogic Inc’s reported EPS for the quarter was a loss of 21 cents. The company reported a quarterly loss of $128 million.
Palisade Bio Inc – Palisade Bio receives FDA Fast Track Designation for LB1148 for Reduction of Adhesions Following Abdominal and Pelvic Surgery.