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The Zacks Analyst Blog Highlights: NVIDIA, Peloton, Uber, Expedia and Airbnb
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For Immediate Release
Chicago, IL – November 5, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NVIDIA Corporation (NVDA - Free Report) , Peloton Interactive, Inc. (PTON - Free Report) , Uber Technologies, Inc. (UBER - Free Report) , Expedia Group, Inc. (EXPE - Free Report) and Airbnb, Inc. (ABNB - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
Regular Trading Strong Again; Some Q3 Weakness Late
While the Dow made a run back toward the green in the minutes before Thursday’s closing bell, it missed by -0.09%, marking the first session in the past five where the blue-chip index didn’t finish the day higher. The S&P 500 gained +0.42% to a new record closing high, as did the Nasdaq, +0.81% — helped somewhat by the strong performance from NVIDIA on A.I. chips for the “metaverse.” The small-cap Russell 2000, after trading more than +8% higher in the past week, was down a minuscule -0.08%.
However, this was all prior to the latest Q3 reports, which have come in a bit rocky, overall:
After the bell, however, Peloton shares are plummeting on Q3 numbers reported this afternoon: a bottom line of -$1.25 per share came in beneath the -$1.15 in the Zacks consensus, which was already a year-over-year tumble of -675%. Revenues beat on the top line slightly to $805 million in the quarter. Product recalls and a lowering of the price point helped bring net profits -20% year over year.
Shares are down -25% on the news, following a deeply challenged -42% year to date, mostly on these same issues. The company maintains lowering its price point is the way to a younger, less affluent customer, but cost outlays on marketing may push profitability out further. The stock carried a Value-Growth-Momentum score of F into the earnings report.
Uber shares are -5% in late trading on its Q3 report, which saw a beat on the top-line — revenues of $4.8 billion versus $4.4 billion expected — while missing on the bottom: -$1.28 per share versus -37 cents in the Zacks consensus. This includes a one-time write-down charge worth more than $3 billion in the quarter, related to its DiDi holdings.
Driver supply numbers were good: +60% year over year, in a segment where labor force growth can be hard to come by. That said, its adjusted EBITDA swung to a positive in the quarter. But the stock remains -15% underwater year to date.
Expedia easily outperformed on its top and bottom lines — $3.53 per share on $2.96 billion in the quarter, compared to $1.63 per share on $2.77 billion in sales, respectively. The company sees big momentum in its VRBO space, as restrictions from Covid-19 eased in the fall months. Gross Bookings grew an eye-opening +117% year over year. Demand is good in the travel business, after a long period of pent-up demand.
However, Airbnb shares initially fell -5% on its Q3 report Thursday afternoon, even as earnings of $1.22 per share surpassed the 84 cents expected, on $2.2 billion in sales, +46% year over year. Next quarter’s revenue guidance is a tad below expectations to $1.4 billion. But shares have since shifted to the positive, on $834 million net income, which more than tripled year over year.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: NVIDIA, Peloton, Uber, Expedia and Airbnb
For Immediate Release
Chicago, IL – November 5, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NVIDIA Corporation (NVDA - Free Report) , Peloton Interactive, Inc. (PTON - Free Report) , Uber Technologies, Inc. (UBER - Free Report) , Expedia Group, Inc. (EXPE - Free Report) and Airbnb, Inc. (ABNB - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
Regular Trading Strong Again; Some Q3 Weakness Late
While the Dow made a run back toward the green in the minutes before Thursday’s closing bell, it missed by -0.09%, marking the first session in the past five where the blue-chip index didn’t finish the day higher. The S&P 500 gained +0.42% to a new record closing high, as did the Nasdaq, +0.81% — helped somewhat by the strong performance from NVIDIA on A.I. chips for the “metaverse.” The small-cap Russell 2000, after trading more than +8% higher in the past week, was down a minuscule -0.08%.
However, this was all prior to the latest Q3 reports, which have come in a bit rocky, overall:
After the bell, however, Peloton shares are plummeting on Q3 numbers reported this afternoon: a bottom line of -$1.25 per share came in beneath the -$1.15 in the Zacks consensus, which was already a year-over-year tumble of -675%. Revenues beat on the top line slightly to $805 million in the quarter. Product recalls and a lowering of the price point helped bring net profits -20% year over year.
Shares are down -25% on the news, following a deeply challenged -42% year to date, mostly on these same issues. The company maintains lowering its price point is the way to a younger, less affluent customer, but cost outlays on marketing may push profitability out further. The stock carried a Value-Growth-Momentum score of F into the earnings report.
Uber shares are -5% in late trading on its Q3 report, which saw a beat on the top-line — revenues of $4.8 billion versus $4.4 billion expected — while missing on the bottom: -$1.28 per share versus -37 cents in the Zacks consensus. This includes a one-time write-down charge worth more than $3 billion in the quarter, related to its DiDi holdings.
Driver supply numbers were good: +60% year over year, in a segment where labor force growth can be hard to come by. That said, its adjusted EBITDA swung to a positive in the quarter. But the stock remains -15% underwater year to date.
Expedia easily outperformed on its top and bottom lines — $3.53 per share on $2.96 billion in the quarter, compared to $1.63 per share on $2.77 billion in sales, respectively. The company sees big momentum in its VRBO space, as restrictions from Covid-19 eased in the fall months. Gross Bookings grew an eye-opening +117% year over year. Demand is good in the travel business, after a long period of pent-up demand.
However, Airbnb shares initially fell -5% on its Q3 report Thursday afternoon, even as earnings of $1.22 per share surpassed the 84 cents expected, on $2.2 billion in sales, +46% year over year. Next quarter’s revenue guidance is a tad below expectations to $1.4 billion. But shares have since shifted to the positive, on $834 million net income, which more than tripled year over year.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.