2021-05-04 15:56:21

Dogecoin jumps, SmileDirectClub’s cybersecurity incident, Warner Music beats

Julie Hyman and Brian Sozzi discuss some of Tuesday’s early movers, including SmileDirectClub’s disclosures of a recent cybersecurity incident, Warner Music Group’s earnings beat and Dogegoin’s jump.

Video Transcript

BRIAN SOZZI: I know you’re also watching Warner, Warner Group, the music company, Julie.

JULIE HYMAN: Yeah, Warner Media Group out with its numbers, second quarter numbers there. And the company on those shares are also falling in today’s session by about 2 and 1/2%. That’s even after they saw growth of 17% in revenue, digital revenue there specifically up 23%. And the company posted net income versus a loss a year earlier. But we are seeing a pullback.

One thing that was noticed by Rich Greenfield that I saw a tweet on earlier today, a funny little quirk in those Warner Media numbers, was the amount of analog sales that the company had. In other words, they sold apparently some records. Vinyl and CDs up 5% in the first half of their fiscal year, which is kind of–

BRIAN SOZZI: That’s all you, Julie. You bought all those records.

JULIE HYMAN: –curious. Yeah, no, definitely, definitely was not me. I’m a digital girl at this point. But still, it’s interesting seeing that the shares are down. We’ll see what, if any effect, reopening has on a company like Warner Music.

On the flip side, in terms of movers in a very different industry, Smile Direct Club. Now Smile Direct, this is not a company that you would think of necessarily that would be vulnerable to a cyber attack, but apparently, that’s what has happened

BRIAN SOZZI: Yeah, Julie, today, it’s Frown Direct Club here because shares–


BRIAN SOZZI: –are getting absolutely rocked, down 17%. I had to. I mean, it’s a bad pun, but I just had to make it happen. But nonetheless, Smile Direct Club is noting that they got hacked on April 14. And their second quarter sales will get hit between $10 and $15 million from the hack.

Now I would argue the stock sell-off is not necessarily related to this hack. It’s a component perhaps. But they also preannounced first quarter results, looking for a loss per share of $0.25, Smile Direct Club. The Street was looking for a loss of $0.10.

And last week, we just talked to Invisalign CEO Joe Hogan. They blew it out of the water. So here you have Invisalign maker coming out here with a strong first quarter. You have Smile Direct Club here posting worse than expected first quarter results, Julie. You have to think Invisalign continues to take market share from the Smile Direct Club.

JULIE HYMAN: Yeah, and as we talked about, we’re talking to the CFO next week of Smile Direct Club. So we’ll see what he has to say about the competition between the two and about that cyber attack.

Finally, I mean, this is a real grab bag here. I’m going to throw one more at you, Sozzi. And this is the top trending ticker on Yahoo Finance today. It’s Dogecoin. And it’s not going down with stocks here. It’s going up. Look at that, $0.57 for Dogecoin.

Remember, for a refresher for you folks who are not familiar, this was a cryptocurrency that was created as a joke, a so-called meme coin based on that doge, the cute Shiba Inu meme. And now it’s up to $0.58. It’s up 44% in today’s session, colloquially known as the people’s coin. I guess, a lot of people are buying it today, Brian.

BRIAN SOZZI: Uh, yeah, Dogecoin ripping higher, not a surprise, just given everything we’ve seen in crypto this year, Julie.

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