Today we are watching…
1. DocuSign (#docu)
When the CEO of this document auto-signing firm released earnings results yesterday, he knew they were going to miss Wall Street estimates. It must have been a clenching moment, but when he opened his eyes and surveyed the market response, his shares were up a whopping 21%! As it turns out, investors in this cloud-based company were far more concerned about revenues than end-game profits. Nearly two billion dollars was added to the company’s market value as management told investors to expect big things for the rest of the year. As the bulls rode in, however, other market players started to fear the emotional reaction that could be around the corner if DocuSign doesn’t make good on its promises.
2. Restaurants Brands (#qsr)
Popeyes, a fried chicken chain owned by Restaurant Brands, recently carted out a brand new chicken sandwich for its religiously devoted customers. It sold well, and investors saw it as a reliable long-term menu item. Then, everything changed! With one witty tweet from Popeyes in response to a Chick-Fil-A marketing post, the sandwich went viral. Now, shareholders of Restaurant Brands are enjoying the sweet taste of victory as over a thousand of its delectable chicken sandwiches are sold every day to curious new customers. The market just received word of the commercial payoff from this, which has swung stock sentiment heading into the final quarter of the year. Bravo!