Goldman thinks Nike’s sales in China could grow by double digits


What’s up, dough? I’m Ryan Grace it’s December 5th, 2019, and this is The 3Cap. Today we’re talking about Slack had better than expected earnings. Goldman Sachs likes Nike and investing in pets. Slack, the workplace communication software, once hailed as a potential email killer, reported earnings yesterday. And while it beat
analysts estimates for both sales and earnings per share,
it’s still losing money. Let’s take a look. In its second earnings announcement since going public, slack lost two cents per share compared to a loss of 8 cents. Analysts were looking for its sales, came in just under a hundred seventy million dollars for the quarter and for the full year. The company now thinks it will bring in more money compared to its previous forecast. And one of the reasons for this might be because it’s starting to see big companies embrace its software. The purpose of slack software is to help employees communicate and collaborate more efficiently through direct messages and across internal chat rooms. So some have argued it could possibly eliminate the need for
email. According to Slack CFO. There are now more than 50 large
enterprise customers paying a million dollars or more a year to use its service. But Slack is still down about 40 percent since it went public in June. So its performance has been a bit
disappointing, though, if it can sign up more large customers. Maybe it’s the start of a turnaround. The symbol is WORK if you want to trade it or add it to your favorites. Well, the trade war between the U.S. and China has appeared to weigh on some industries and companies. For Nike, not only is it not really much of a concern, but
according to Goldman Sachs, China is Nike’s key growth driver and one of the reasons for its recent
upgrade. Goldman has upgraded Nike toa buy, noting the potential for Nike to grow its yearly revenue in China at a pace close to 20%, mostly due to its shift towards a direct to consumer business. Goldman also likes Nike because of its potential to raise prices
against a backdrop of increased purchasing power among younger consumers. We’ll see whether Goldman is right on
its Nike call going forward. But the stock is up this morning and the symbol is NKE. If you want to add to your favorites. Finally, sticking with upgrades. The online pet store. Chewy.com was also given a favorable review by Morgan Stanley, with the bank upgrading the stock to overweight, which is essentially the equivalent of a buy rating. Morgan Stanley thinks Chewy is positioned well to benefit from potential growth in the online pet
products market, and its position helps to establish it as a number one company in the market at the moment. Chewy.com is a spinoff of PetSmart and it went public this year in June. But its performance has been underwhelming as its down about 30% since it became available to trade. His earnings have also been negative
during its last two announcements. But maybe Morgan Stanley is on to something similar. The symbol is CHWY if you want to trade it or add it to your favorites. That’s it. I’m Ryan Grace and that’s The 3Cap. Check back again to stay on top of
what’s going on in the market..

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