Airbnb's Profitability Ignored

And, Rivian Automotive reaffirms target.

Steven Lerner
Steven Lerner

Today is Wednesday, May 10, 2023.

New to this newsletter? Sign up here.

Airbnb's Profitability Ignored

Despite celebrating its first profitable Q1, Airbnb (Nasdaq: ABNB) dropped by 11.93% in after-hours trading on Tuesday due to a bad financial outlook.

Financials: Airbnb reported earnings of 18 cents per share in the past quarter and revenue of $1.8 billion; both were better than expected.

Details: Revenue in the past quarter jumped by 20% due to strong growth in Nights and Experiences Booked. The trailing-twelve-month Free Cash Flow was a record $3.8 billion.

But: Airbnb’s outlook for the current summer quarter disappointed investors, with a revenue guidance range between $2.35 billion to $2.45 billion. The company expects growth in Nights and Experiences Booked to be lower, average daily rates to be lower, and higher sales and marketing expenses.

Stock Price: Airbnb’s stock is up nearly 50% this year, including a 12% jump in the last 30 days.

Final Thoughts: Airbnb is still a popular travel stock, but there are concerns about travel demand flattening out, especially for domestic travel.


Notable Earnings Today: Walt Disney (NYSE: DIS), Roblox (NYSE: RBLX), Icahn Enterprises (Nasdaq: IEP), The Trade Desk (Nasdaq: TTD), Li Auto (Nasdaq: LI), Unity Software (NYSE: U), Wendy's (Nasdaq: WEN), Allegro MicroSystems (Nasdaq: ALGM), Teva Pharmaceutical Industries (NYSE: TEVA), Ginkgo Bioworks Holdings (NYSE: DNA), Coherent (NYSE: COHR), Beyond Meat (Nasdaq: BYND), Brookfield Asset Management (NYSE: BAM), Catalyst Pharmaceuticals (Nasdaq: CPRX), Blackstone Secured Lending (NYSE: BXSL), Robinhood Markets (Nasdaq: HOOD), First Citizens BancShares (Nasdaq: FCNCA), Nutrien (NYSE: NTR), Village Farms (Nasdaq: VFF), Magnite (Nasdaq: MGNI), Holdings (Nasdaq: ALRM), AppLovin (Nasdaq: APP), Bilibili (Nasdaq: BILI), Cheesecake Factory (Nasdaq: CAKE), Corsair Gaming (Nasdaq: CRSR), Crane (NYSE: CR), Ebix (Nasdaq: EBIX), Flex (Nasdaq: FLEX), GoodRx (Nasdaq: GDRX), Groupon (Nasdaq: GRPN), Hecla Mining (NYSE: HL), Jazz Pharmaceuticals (Nasdaq: JAZZ), Manulife Financial (NYSE: MFC), New York Times (NYSE: NYT), OraSure (Nasdaq: OSUR), Pan Am Silver (NYSE: PAAS), Performance Food Group (NYSE: PFGC), Reynolds Consumer Products (Nasdaq: REYN), Ritchie Bros. Auctioneers (NYSE: RBA), Sonos (Nasdaq: SONO), Traeger (NYSE: COOK), Valvoline (NYSE: VVV), Vertex (Nasdaq: VERX), Wolverine World Wide (NYSE: WWW).

Notable IPOs Today: Strong Global Entertainment, Inc. (NYSE American: SGE), PIMCO ETF Trust (NYSE Arca: CMDT).

Notable Equity Crowdfunding Campaigns Ending Today: VOLTEQ Equipment (Netcapital).

Notable Economic Events Today: CPI / Core CPI (8:30 a.m. ET), Crude Oil Inventories (10:30 a.m. ET), Federal Budget Balance (2:00 p.m. ET).

Rivian Automotive Reaffirms Target

Photo by Stephen Leonardi / Unsplash

Rivian Automotive (Nasdaq: RIVN) reported a loss in the past quarter that was better than expected, causing shares of the electric vehicle company to jump 5.56% in after-hours trading on Tuesday.

Details: The stock is down 20% this year. Rivian also reaffirmed its 2023 production target of 50,000 vehicles. The company said it has $12 billion of cash on hand.

Final Thoughts: Despite the supply chain challenges and lower demand in the EV industry, investors are pleased that Rivian is on track to deliver what it promised.

Affirm Keeps Losing Money

Although Affirm Holdings (Nasdaq: AFRM) posted better-than-expected financial results on Tuesday, shares dropped 7.97% in after-hours trading.

Final Thoughts: The company lost $310 million in the past quarter, compared to a loss of $227 million in the same period last year. Affirm's stock is down 32% in the last 12 months.

Outperform the crowd by following the pros 🤙 (Sponsored)

Want to find out what full-time investors are talking about? The Rollup highlights the week's best podcasts, investment ideas & finance articles from professional asset managers. Join thousands of other smart investors who get the Rollup every Sunday.

Get it free

Goal: EA Stock Rises on Strong Earnings. FIFA Scores for Game Maker. (Barron’s)

RIP MTV News: Paramount Media Networks, Showtime and MTV Entertainment Studios to Lay Off 25% of U.S. Staff as MTV News Shuts Down (Variety)

Starting to Go Up: Upstart stock soars 40% after upbeat earnings outlook, funding progress (MarketWatch)

Guiding Lite: Litecoin Transactions Hit Record High as Bitcoin Fees Surge Amid BRC-20 Frenzy (CoinDesk)

Welcome Back, Discounts: Under Armour sends potential warning sign about retailers’ profits (CNBC)

Thank you for reading!

Forward to a friend and tell them to sign up here.

Be social: Like our Facebook page and follow us on Twitter.

Want more investing tips? Listen to the podcast.

Show Your Support: Buy Me a Coffee.

Questions or comments? Hit reply to reach out.