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Markets Bounce Back; Disney+ Misses on Subscriber Numbers

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Regular trading this Thursday bounced back from what had been a very disappointing week. Indexes haven’t made back all their losses at this point, but it’s nice to see green across the board. The Dow gained 1.29% on the day, +433 points, while the Nasdaq gained 0.72% on the day, bringing itself to back within 7% of its all-time highs. The S&P 500 grew a healthy 1.22% on the day, while the small-cap Russell 2000 outperformed the field, +1.66%.

Investors appear to be growing accustomed to our current inflation-gathering state. What had been — up until just yesterday — a trigger for interest rate hike fears and tapering of bond buybacks, the market looks prepared to once again take its good economic fortune in stride. Then again, seeing some of the strongest market performers pulling back 5% or more must have looked like a good buying opportunity at current valuations.

The Walt Disney Company (DIS - Free Report) shares are down more than 4% in late trading on a big earnings beat for its fiscal Q2: 79 cents per share was well ahead of the 31 cents expected, and swung to a year-over-gain from 60 cents in the year-ago quarter. But revenues, already expected be come in 11% lower year over year, disappointed even further: $15.61 billion versus $16.02 billion in the Zacks consensus.

The main reason for the sell-off after hours was the disappointing subscriber numbers for its Disney+ streaming service: 103.6 million versus 109.3 million anticipated. Average revenue per user (ARPU) was down 29% even though the company raised prices. This marks the fourth-straight earnings beat for the entertainment conglomerate, but growth realizations in the quarter look to have set the stock back. Shares are flat year to date.

Airbnb (ABNB - Free Report) posted its second-straight miss on earnings since its IPO in December of last year: -$1.95 per share was off the -$1.15 expected, due to a one-time impairment charge based on consolidating its headquarters. Revenues, on the other hand, performed much better than expected: $887 million versus $727.5 million analysts were looking for. Q1 Gross Booking Volume (GBV) outpaced expectations nicely: 10.3 billion versus 7.9 billion. Shares are down 1.6% on a murky outlook.

Coinbase (COIN - Free Report) shares are higher on its maiden voyage since its IPO last month, with a miss on both top and bottom lines: $3.05 per share on $1.80 billion in revenues, as compared to $3.88 per share and $1.85 billion expected. The company counts 56 million verified users, up 55% year over year, thanks to the cryptocurrency excitement flooding the market (though Bitcoin was down 10.55% today). Shares are now down less than 20% since the IPO.

Finally, DoorDash (DASH - Free Report) is up 8% following its mixed Q1 earnings results, with -34 cents per share missing the -23 cents in the Zacks consensus, but a nearly 200% gain on the top line to $1.08 billion — well ahead of the $980 million expected. Q1 total orders reached 329 million, +219% year over year. Gross Order Volume surprised to the upside and now guides higher for Q2. Stimulus checks found their way into restaurant delivery services in the quarter, of which DoorDash is a market leader.

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