In a week that saw major indices in the U.S. rally on jobs growth and on the seeming resolution of the debt ceiling debate, the CE 100 Index outpaced its broader market peers.
To that end, the CE 100 Index gained 3.3% as all pillars marched higher.
Mongo DB surged by more than 32%, leading enablers 5.1% higher for the week.
MongoDB said that for its fiscal 2024 first quarter, highlights included 40% Atlas revenue growth and what it terms the “most net new customer additions in over two years.” Management spotlighted the increased demand for AI in software development and stated that its developer data platform would benefit from the evolution of AI applications in the years ahead. Revenues were 29% higher in the quarter, to $368.3 million, and operating losses narrowed to $68.5 million from $75.9 million a year ago.
Elsewhere, shares of Snowflake were up 16.8%, underpinning the Enablers’ group rally. Snowflake’s shares rebounded after a double-digit loss in the wake of earnings reported May 24th, where product revenue of $590.1 million in the first quarter represented a 50% gain, and where guidance looks for 34% growth in the current quarter, which ends in July. Bloomberg had reported that investors and analysts have been concerned over slowing growth rates — and that several analysts had downgraded the stock and cut price targets.
Peloton Rises on New Membership Tiers
Peloton shares gained 21.5%, leading the “Be Well” segment 4.5% higher. As we noted late last month, Peloton announced new membership tiers as it rebrands to focus on exercise, not hardware.
“We’re shifting perceptions from in-home to everywhere, fitness enthusiasts to people at all levels, exclusivity to inclusivity across all Peloton Members present and future,” Leslie Berland, the fitness company’s chief marketing officer, said as part of the announcement. Company data shows that over half of its workouts during its most recent quarter were not cycling related.
As reported, the company has also added three new membership tiers for its app: a basic, no-cost membership called Peloton App Free, which offers more than 50 classes; Peloton App One, a paid plan which offers access to thousands of classes, and the premium-level Peloton App+, for the user “who wants frictionless, unlimited access to Peloton’s vast library.”
iRobot shares gained 19.2% and helped drive the “Live” segment 3.6% higher. As reported by Reuters, in a bit more than a month — by July 6 — EU antitrust regulators will give a thumbs up or down to Amazon.com Inc’s proposed $1.7 billion acquisition of iRobot. Recent PYMNTS data underscore the continued use of technology and “smart” devices within the home. As found in our ongoing Connected Economy research, 21 million more consumers participated in activities involving some type of smart home device, and 40% of consumers surveyed embraced these devices, an increase of 31% year over year as measured in the early months of this year.
Within the Shop segment, Ocado shares gave up 11.3%, holding the segment’s gains to 0.1%. The shares fell, as Reuters reported, as the company’s stock was “demoted” from the FTSE 100 and added to the FTSE 250 stock exchange index in the U.K.