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- 🍦 Airbnb Tanks 9%
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Market Moves Yesterday
S&P 500 @ 5,187.67 ( ⬇️ 0.00058%)
Nasdaq Composite @ 16,302.76 ( ⬇️ 0.18%)
Bitcoin @ $61,348.31 ( ⬇️ 0.97%)
Hey Scoopers,
Happy Thursday! Here’s what we’re covering today:
👉 Airbnb reports earnings
👉 Shopify’s worst day ever
👉 Uber stock slips
So, let’s go 🚀
Market Wrap 📉
The S&P 500 index was rangebound, while the tech-heavy Nasdaq Composite index fell marginally on Wednesday as companies continued to report their quarterly earnings.
Risk assets such as equities continue to experience a constructive macro backdrop. However, investors should stay vigilant given a range of economic and geopolitical risks could weigh heavily on near-term performance.
While equities have staged a remarkable comeback since late 2022, economists are concerned about headwinds such as geopolitical tensions, elevated interest rates, sluggish consumer spending, and inflation.
It’s essential to mitigate volatility and keep portfolios on track by diversifying and balancing across asset classes.
Trending Stocks 🔥
Arista Networks - The company’s post-earnings rally made it the best performer on the S&P 500 yesterday. It reported earnings of $1.99 per share and revenue of $1.57 billion compared to estimates of $1.74 per share and $1.55 billion.
Intel- The chip maker fell over 2% after releasing revised Q2 guidance. It expects sales below $13 billion in Q2 after the U.S. Department of Commerce revoked export licenses for China-based Huawei.
Tripadvisor - The travel platform fell over 28%, heading for its worst day on record after the company ruled out the likelihood of a buyout. It topped earnings estimates and reported sales in line with forecasts in the recent quarter.
Airbnb Beats Q1 Estimates
Airbnb reported Q1 results that beat consensus estimates. However, ABNB stock is down 9% in pre-market after it issued a weaker-than-expected guidance.
Here are the key numbers for Airbnb in Q1:
Revenue of $2.14 billion vs. estimates of $2.06 billion
Earnings per share of $0.41 vs. estimates of $0.24
Revenue rose 18% year over year
Adjusted EBITDA rose 62% to $424 million, vs. estimates of $326 million
Gross bookings value totaled $22.9 billion
Airbnb forecast sales between $2.68 billion and $2.74 billion in Q2, compared to estimates of $2.74 billion.
Prior to the pullback, Airbnb stock surged 24% in the last 12 months.
Shopify Tumbles Post Q1 Results
Shopify stock fell almost 19% yesterday, shaving off over $20 billion from its market cap after its Q2 guidance failed to impress Wall Street.
In Q1 of 2024, Shopify reported:
👉 Revenue of $1.86 billion vs. estimates of $1.85 billion
👉 Earnings per share of $0.20 vs. estimates of $0.17
The e-commerce giant expects revenue to grow at a high-teens percentage rate in Q2, in line with estimates of a 19.5% growth. However, it still represents a deceleration from recent quarters.
Shopify explained that a strong U.S. dollar and softness in European consumer spending led to its tepid guidance.
Further, it stated gross margins might narrow by 50 basis points sequentially while operating expenses will rise by low-to-mid-single digits in Q2 of 2024.
Uber Fails to Impress Wall Street
Ride-hailing company Uber announced Q1 results and reported:
Revenue of $10.13 billion vs. estimates of $10.11 billion
Loss per share of $0.32 vs. earnings estimates of $0.23 per share
Uber's sales increased by 15% year over year and it reported gross bookings totaling $37.65 billion, below estimates of $37.93 billion.
Uber attributed lower gross bookings to soft demand in Latin America and the early timings of holidays. However, Uber noted strong growth in airport rides and rising demand during work hours.
Record order frequency and expanded services via Uber One drove sales in its delivery business. Uber also disclosed plans to integrate Uber Eats with Instacart and explore other partnerships.
Lastly, investors were worried about Uber’s freight business, which continues to struggle amid industry-wide challenges.
Headlines You Can't Miss!
Arm stock plunges after Q2 guidance disappoints
U.S. 10-year Treasury yields rise
China-based Nio set to launch lower-priced EV
Coffee chain Dutch Bros details expansion plan
FTX reveals plan to reimburse creditors
Chart of The Day
The purchasing power of the U.S. dollar has fallen sharply over the last century due to inflation and rising money supply.
The above chart shows the importance of investing your savings across inflation-beating asset classes such as stocks, bonds, and gold.
Meme of the Day
DISCLAIMER: None of this is financial advice. The newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.