Here we look at some of the biggest movers last week, while only considering the companies with a market cap of at least $5 billion.
Capri Holdings (CPRI:US) saw its stock rise nearly 50% last week after the company accepted a bid from Tapestry (TPR:US), which is known for brands like Coach and Kate Spade. Under the terms of the transaction, Capri shareholders will receive $57 per share in cash for a total enterprise value of approximately $8.5 billion.
This significant multi-billion deal highlights the ongoing consolidation trend in the luxury goods industry. Capri owns brands like Versace, Jimmy Choo, and Michael Kors.
“The combination of Coach, Kate Spade, and Stuart Weitzman together with Versace, Jimmy Choo, and Michael Kors creates a new powerful global luxury house, unlocking a unique opportunity to drive enhanced value for our consumers, employees, communities, and shareholders around the world,” said Joanne Crevoiserat, Chief Executive Officer of Tapestry.
AppLovin (APP:US) stock surged 24% last week after the company announced its Q2 results. AppLovin's earnings per share (EPS) stood at $0.22, a substantial improvement compared to a loss of $0.06 per share in the same period the previous year. This outcome also exceeded the estimated EPS of $0.08.
AppLovin's revenue reached $750.2 million, down 3.4% year-over-year, but outperforming the projected revenue of $720.8 million. For the upcoming third quarter, Lovin forecasts revenue between $780 million to $800 million, exceeding the estimated revenue of $739.7 million. The company also anticipates an adjusted EBITDA between $340 million to $360 million, along with an adjusted EBITDA margin of 44% to 45%.
Moreover, the company's revenue demonstrated a noteworthy growth of 28% year-over-year, totaling $8.31 billion. This figure exceeded the estimated revenue of $7.58 billion.
The management said the strong results were a result of the robust performance of its flagship “Mounjaro” drug, which is seen as one of the key growth drivers in the years to come for Lilly. Moreover, the company also saw a strong contribution from Growth Products, which played a significant role in the Q2 outperformance.
Plug Power (PLUG:US) shares are in downfall after the developer of hydrogen fuel cell technology reported weaker-than-expected profit figures for the second quarter. Plug Power reported net revenue of $260.2 million for the second quarter, marking a 72% year-over-year increase. This substantial growth exceeded the average analyst estimate of $241.8 million.
“Record revenue reflects increasing traction with vertically integrated business model, strong growth in material handling, and contributions from new product lines,” the company said in a shareholder letter.
Despite the positive revenue growth, Plug Power reported a loss per share of $0.40. This figure compared to a loss per share of $0.30 in the same period the previous year. The estimated loss per share was $0.26.
Despite a Q2 revenue outperformance, Plug Power only reaffirmed full-year guidance of $1.2 billion to 1.4 billion for 2023.
PLUG stock fell 21.2% last week, which will come as a disappointment for Rep. Daniel Goldman. The Congressman from New York bought $15,000 - $50,000 worth of PLUG shares on April 10, when the stock closed at $9.36.
Roblox (RBLX:US) shares fell more than 20% last week after the company reported results for its second quarter. Roblox reported daily active users (DAUS) numbering 65.5 million for the second quarter, aligning closely with the average analyst estimate of 65.8 million. The company's bookings amounted to $780.7 million, surpassing the estimated figure of $770.6 million.
“This is our second consecutive quarter with year-over-year bookings growth in the low-20s. During the quarter, we also built the plans that we believe will enable us to generate operating leverage against infrastructure and trust & safety spend starting next quarter and against compensation expense starting in the first quarter of 2024,” said Michael Guthrie, chief financial officer of Roblox.
Roblox's revenue reached $680.8 million, exceeding the estimated revenue of $655.9 million, while hours engaged totaled 14.0 billion, slightly below the estimated engagement of 14.4 billion. Overall, Roblox reported a loss per share of $0.46.