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Huge Upswings on Big Q4 Beats: AMZN, SNAP, PINS & More
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Market indexes this Thursday took a tumble this afternoon, plummeting downward to session lows before ebbing very late in regular trading. Even still: ugly — the Dow dropped -1.46%, -519 points; the S&P 500 was -2.44%; and the Nasdaq posted its worst single day of trading since October 2020, 538 points or -3.74%. Remarkably, these top indexes remain in the positive for the week, with one more trading day to go. The small-cap Russell 2000 fell another -1.90% today.
We’re almost seeing a mirror image of Wednesday’s trading day, which saw a big surge during normal trading hours, but falling off a table after-hours with bad quarterly news from Meta and Spotify. Following today’s deep crater of a trading day, we see green shoots on fresh Q4 earnings after the bell, including from one of the FAANG stocks.
I speak of Amazon.com (AMZN - Free Report) , which is up +18% on a truly gigantic earnings beat on slightly lower revenues than expected and notably lower revenue guidance for Q1 2022. But that $27.74 per share looks awfully splashy, especially seeing the e-commerce giant was only expected to fetch $3.89 per share. The late-trading performance looks to, amazingly, have brought Amazon into positive territory year to date, after a very dismal January.
Amazon Web Services (AWS) net sales outperformed estimates to $17.8 billion from $17.4 billion expected. Operating Income was also better than anticipated, $5.3 billion versus $4.8 billion. The company will be raising its Prime membership service from $119 per year to $139. This, while revenue guidance for Q1 is light, might forge a path toward increased income in future quarters.
Snap (SNAP - Free Report) is experiencing an even huger jump in post-market trading, up an astounding +49% on giant beats for both top and bottom lines in its Q4 release after Thursday’s bell: 22 cents per share is more than 3x the 6 cents expected, and almost 2.5x the year-ago 9 cents reported. Revenues in the quarter grew 42% year over year to $1.3 billion, above the $1.2 billion expected.
It’s the first quarter of net positive income for the parent of Snapchat, and this is not insignificant. Daily Active Users (DAU) are growing to 319 million, one million higher than expected. Guidance for DAU is now 328-330 million from consensus 328 million. Citing Meta’s lower DAU reported yesterday, it may stand to reason that customers are leaving Facebook and Instagram for platforms like Snapchat. At least a +41% bump on an earnings report would suggest such a thing.
Ford (F - Free Report) put up mixed Q4 numbers Thursday afternoon, with revenues of $35.3 billion topping the $35.02 billion in the Zacks consensus, but earnings of 26 cents per share was a big miss from the 43 cents expected. Shares are down -3.5% on the news. Interestingly for an auto manufacturer not named Tesla, Ford is looking toward future growth as a justification for owning its stock: the company still expects 600K EVs delivered by 2023.
And Pinterest (PINS - Free Report) is also enjoying a big bounce on its better-than-expected Q4 report, with earnings of 49 cents per share on $847 million in sales outpacing the 45 cents and $831 million expected by Zacks analysts for the quarter. Forward revenue guidance is in-line with expectations. This marks the seventh-straight earnings beat for Pinterest in its relatively short history as a publicly traded entity.
Image: Bigstock
Huge Upswings on Big Q4 Beats: AMZN, SNAP, PINS & More
Market indexes this Thursday took a tumble this afternoon, plummeting downward to session lows before ebbing very late in regular trading. Even still: ugly — the Dow dropped -1.46%, -519 points; the S&P 500 was -2.44%; and the Nasdaq posted its worst single day of trading since October 2020, 538 points or -3.74%. Remarkably, these top indexes remain in the positive for the week, with one more trading day to go. The small-cap Russell 2000 fell another -1.90% today.
We’re almost seeing a mirror image of Wednesday’s trading day, which saw a big surge during normal trading hours, but falling off a table after-hours with bad quarterly news from Meta and Spotify. Following today’s deep crater of a trading day, we see green shoots on fresh Q4 earnings after the bell, including from one of the FAANG stocks.
I speak of Amazon.com (AMZN - Free Report) , which is up +18% on a truly gigantic earnings beat on slightly lower revenues than expected and notably lower revenue guidance for Q1 2022. But that $27.74 per share looks awfully splashy, especially seeing the e-commerce giant was only expected to fetch $3.89 per share. The late-trading performance looks to, amazingly, have brought Amazon into positive territory year to date, after a very dismal January.
Amazon Web Services (AWS) net sales outperformed estimates to $17.8 billion from $17.4 billion expected. Operating Income was also better than anticipated, $5.3 billion versus $4.8 billion. The company will be raising its Prime membership service from $119 per year to $139. This, while revenue guidance for Q1 is light, might forge a path toward increased income in future quarters.
Snap (SNAP - Free Report) is experiencing an even huger jump in post-market trading, up an astounding +49% on giant beats for both top and bottom lines in its Q4 release after Thursday’s bell: 22 cents per share is more than 3x the 6 cents expected, and almost 2.5x the year-ago 9 cents reported. Revenues in the quarter grew 42% year over year to $1.3 billion, above the $1.2 billion expected.
It’s the first quarter of net positive income for the parent of Snapchat, and this is not insignificant. Daily Active Users (DAU) are growing to 319 million, one million higher than expected. Guidance for DAU is now 328-330 million from consensus 328 million. Citing Meta’s lower DAU reported yesterday, it may stand to reason that customers are leaving Facebook and Instagram for platforms like Snapchat. At least a +41% bump on an earnings report would suggest such a thing.
Ford (F - Free Report) put up mixed Q4 numbers Thursday afternoon, with revenues of $35.3 billion topping the $35.02 billion in the Zacks consensus, but earnings of 26 cents per share was a big miss from the 43 cents expected. Shares are down -3.5% on the news. Interestingly for an auto manufacturer not named Tesla, Ford is looking toward future growth as a justification for owning its stock: the company still expects 600K EVs delivered by 2023.
And Pinterest (PINS - Free Report) is also enjoying a big bounce on its better-than-expected Q4 report, with earnings of 49 cents per share on $847 million in sales outpacing the 45 cents and $831 million expected by Zacks analysts for the quarter. Forward revenue guidance is in-line with expectations. This marks the seventh-straight earnings beat for Pinterest in its relatively short history as a publicly traded entity.
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