Morning Commentary: Zillow, Twilio, Five9, Etsy active amid large stock moves

By Abigail W. Adams

Portland, Me., Aug. 7 – The convertibles space kicked off Tuesday with several names active after large stock moves post-earnings reports.

Zillow Group Inc.’s 2% convertible notes due 2021 dropped 12 points outright and the recently priced 1.5% convertible notes due 2023 reached their lowest outright price since hitting the market on June 29 as the company’s stock plummeted 17% early Monday.

Etsy Inc.’s 0% convertible notes due 2023, Twilio Inc.’s 0.25% convertible notes due 2023 and Five9 Inc.’s 0.125% convertible notes due 2023 all reached their highest outright prices since hitting the market as the companies’ stocks soared after earnings reports.

Zillow plummets

Zillow’s stock and convertible notes were on the move early Tuesday with the convertible notes seeing large outright drops as the stock plummeted post earnings.

Zillow’s 2% convertible notes due 2021 were down more than 12 points outright to trade at 113, according to Trace data.

The company’s recently priced 1.5% convertible notes due 2023 sunk to their lowest outright price since hitting the market with trades as low as 93.5 early Tuesday.

The notes had opened Monday at par, according to Trace data.

The stock plummeted up to 17% early Tuesday, trading as low as $48.50.

While Zillow reported an earnings beat, the company reported disappointing revenues and forward guidance.

However, the stock tanked on news the online real estate company acquired mortgage lender Mortgage Lenders of America.

Etsy’s earnings

Etsy’s 0% convertible notes due 2023 jumped more than 15 points outright early Tuesday as the stock jumped more than 12% post earnings report.

The 0% notes traded up to 147 with the stock up to $46.82. Etsy missed analyst expectations with earnings of 3 cents per share but beat expectations for revenue with a figure of $132.4 million.

Analysts had expected earnings per share of 4 cents and revenue of $127.1 million, Investor’s Business Daily reported.

Twilio’s earnings

Twilio’s 0.25% convertible notes due 2023 were up more than 10 points outright as the stock also skyrocketed post earnings.

The 0.25% notes traded north of 123 early Tuesday, the highest outright price for the convertible notes since they hit the market in mid-May, according to Trace data.

Twilio’s stock was up more than 20% to $76.37 early Tuesday.

Twilio reported earnings per share of 3 cents for the second quarter versus analyst expectations of a loss per share of 5 cents.

The company also beat on revenue with $147.8 million reported in the second quarter versus analyst expectations of $131.1 million.

Five9 earnings

Five9’s 0.125% convertible notes due 2023 also reached their highest outright price since hitting the market in early May after the company reported a large earnings beat.

The notes were seen trading up about 15 points outright to 116 early Tuesday with the stock up more than 22%.

Five9 beat analyst expectations with earnings per share of 11 cents. Analyst had expected earnings per share of 4 cents.

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