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Regular Trading Strong Again; Some Weakness in Late Q3 Reports
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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 (NVDA - Free Report) 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 (PTON - Free Report) 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 (UBER - Free Report) 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 remain -15% underwater year to date.
Expedia (EXPE - Free Report) 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 (ABNB - Free Report) 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 sifted to the positive, on $834 million net income, which more than tripled year over year.
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Regular Trading Strong Again; Some Weakness in Late Q3 Reports
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 (NVDA - Free Report) 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 (PTON - Free Report) 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 (UBER - Free Report) 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 remain -15% underwater year to date.
Expedia (EXPE - Free Report) 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 (ABNB - Free Report) 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 sifted to the positive, on $834 million net income, which more than tripled year over year.
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