Monday’s market recap: MongoDB tops earnings, Microsoft leverages pricing power, the SEC is investigating Lucid, and PayPal’s BNPL is taking over the credit industry

7 December 2021 By

MongoDB surges on earnings and revenue beat
Microsoft officer will cost 20% for some business clients in 2022
PayPal's BNPL is replacing credit cards, and Kohl's should separate its eCommerce business

It was a busy Monday for various stocks after the release of different announcements, which made the stocks jump or fall.

MongoDB surges in earnings beat

On Monday, one stock that surged was MongoDB Inc. (NASDAQ: MDB), which gained 15% after releasing Q3 revenue and earnings results that topped analyst estimates. The company reported a non-GAAP loss per share of $0.11, topping consensus estimates of a loss of $0.38. Additionally, GAAP EPS loss was $1.22, beating $1.35 per share estimates. In Q3 2021, revenue was up 50.5% YoY to $226.89 million exceeding Wall Street estimates by $21.71 million.

Microsoft Office to cost more in 2022

Microsoft Corp (NASDAQ: MSFT) shares are up 50% since the start of the year. The tech giant has announced that it will leverage its pricing power in productivity software in 2022. Next year, a subset of business customers will pay 20% extra for Microsoft Office should they choose a monthly subscription instead of an annual subscription. The announcement will affect clients purchasing Office suite through the Cloud Solution Provider program.

Kohl should sell or separate business, says analyst activist

Kohl’s Corporation (NYSE: KSS) shares jumped 10% yesterday after activity investor Engine Capital suggested two ways to boost the company's stock price. First, the hedge fund proposed that Kohl's should sell its equity to private equity companies, some of which might pay $75 per share or separate the digital business. At revenue of around $6.2 billion, the e-commerce segment is valued at $12.4 billion as an autonomous entity.

Lucid under SEC probe

Lucid Group Inc. (NASDAQ: LCID) shares lost almost 20% on Monday after the EV maker announced that the US SEC had subpoenaed it. The SEC is investigating various EV firms that went public recently through a SPAC merger. Lucid is among the companies under regulatory scrutiny, according to the subpoena. The probe involves the merger between the Churchill Capital Corp IV and Itieva Inc. and some statements and projections.

PayPal's BNPL is replacing credit cards.

Payment processing giant PayPal Inc. (NASDAQ: PYPL) inched lower on Monday despite upbeat comments from the Kansas City Fed. According to the City's research briefing department Paypal, Square, and Affirm Holdings are likely to replace credit cards in the near future. The department believes that the Buy Now pay Later service is taking over the credit market, and banks have lost $8-$10 billion in the last two years to BNPL.