Today is Wednesday, November 2, 2022.
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Airbnb’s Profit is Not Enough
It was the “biggest and most profitable quarter” in the history of Airbnb (Nasdaq: ABNB), but shares of the lodging company still fell 5.36% in after-hours trading on Tuesday.
Financials: Airbnb reported earnings of $1.79 per share and revenue of $2.88 billion; both were better than expected.
Big Growth: Revenue increased by 29%. Nights and Experiences booked grew by 25%. Net income hit $1.2 billion, which is up 46% from last year. Airbnb says that travel demand is still strong.
Not So Fast: In the fourth quarter, Airbnb says its Nights and Experiences booking growth will “moderate slightly.” The company also sees pressure from foreign exchange headwinds.
Stock Price: Airbnb’s stock is down 36% this year, but is up 3% in the last 30 days.
Final Thoughts: The company’s fourth-quarter outlook was a real letdown for investors. Will other travel companies see the same issues?
Notable Earnings Today: CVS Health (NYSE: CVS), Roku (Nasdaq: ROKU), Generac (NSYSE: GNRC), Qualcomm (Nasdaq: QCOM), Cenovus Energy (NYSE: CVE), Marathon Oil (NYSE: MRO), Humana (NYSE: HUM), Robinhood Markets (Nasdzq: HOOD), Paramount Global (Nasdaq: PARA), Etsy (Nasdaq: ETSY), Estee Lauder (NYSE: EL) GSK (NYSE; GSK), Albemarle (NYSE: ALB), Canada Goose (NYSE: GOOS), Lumen Technologies (NYSE: LUMN), Cedar Fair (NYSE: FUN), Fortinet (Nasdaq: FTNT), Western Midstream Partners (NYSE: WES), ACI Worldwide (Nasdaq: ACIW), Allegiant Travel (Nasdaq: ALGT), Apollo Global Management (NYSE: APO), Booking Holdings (Nasdaq: BKNG), Brinker (NYSE: EAT), C.H. Robinsoon Worldwide (Nasdaq: CHRW), Dine Brands (NYSE: DIN), eBay (Nasdaq: EBAY), Entergy (NYSE: ETR), Fastly (NYSE: FSLY), Ferrari (NYSE: RACE), Hostess Brands (Nasdaq: TWNK), iRobot (Nasdaq: IRBT), LL Flooring Holdings (NYSE: LL), Martin Marieta Materials (NYSE: MLM), Matterport (Nasdaq: MTTR), MetLife (NYSE: MET), MGM Resorts (BTSE: MGM), Nutrien (NTR), Realty Income (NYSE: O), Sturm Ruger (NYSE: RGR), Transocean (NYSE: RIG), Zillow (Nasdaq: Z).
Notable IPOs Today: Infinite Group, Inc. Common Stock (Nasdaq: IMCI).
Notable Equity Crowdfunding Campaigns Ending Today: Geoji (StartEngine), A Band of Anglers (StartEngine), Injaga (Mainvest), Loxsmith Bagels (SMBX), Lambs (Republic).
Notable Economic Events Today: ADP Nonfarm Employment Change (8:15 a.m. ET), Crude Oil Inventories (10:30 a.m. ET), FOMC Statement (2:00 p.m. ET).
Dogecoin Continues Climb Due to Musk Tweet
The price of the cryptocurrency Dogecoin jumped 7% on Tuesday after Elon Musk, an advocate for the digital currency, posted a Halloween photo of a dog on Twitter along with a winking face emoji.
Final Thoughts: While most cryptos have performed well over the past month, Musk’s acquisition of Twitter has helped Dogecoin’s price more than double in that time. The meme-frenzy also resulted in Shiba Inu prices jumping 3% on Tuesday.
Rogers Falls After Dupont Deal Falls Apart
Details: DuPont said that the company has been unable to obtain timely clearance from regulators for the acquisition. By getting out of the deal, DuPont will pay a termination fee of $162.5 million.
Final Thoughts: The acquisition has been in the works for over a year, but regulatory issues prevented the deal from closing. DuPont’s stock went up 5.62% in after-hours trading because of the news.
Trends to Watch
Chipping Away: AMD misses but still ekes out 29% revenue growth (CNBC)
Climbing to the Top: Uniswap Surpasses Bitcoin as Fed Rate Hike Decision Nears (CoinDesk)
Never Ending: Traders Expect Higher Interest Rates to Stay for Foreseeable Future (Wall Street Journal)
Driving Backwards: Uber’s Revenue Is Up 72 Percent From Last Year, but It Posts a Loss (The New York Times)
Essential Oil: BP announces $2.5 billion share buyback after profit soars (CNN)
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