Today is Thursday, May 12, 2022.
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Disney Outstreams Netflix
Shares of Disney (NYSE: DIS) dropped 3.29% in after-hours trading on Wednesday after the entertainment giant posted mixed financial earnings.
Financials: Disney reported earnings of $1.08 per share and revenue of $19.24 billion; both were below estimates.
Streaming Dominance: The number of Disney+ subscriptions increased by 7.9 million in the quarter to 137.7 million. The company’s total streaming subscribers, including ESPN+ and Hulu, hit 205 million. Both numbers were better than expected and better than Netflix, which recently lost 200,000 subscribers.
Park It: Revenue for Disney parks grew to $6.7 billion in the quarter, up from $3.2 billion in the previous-year quarter. While the company’s parks were open in the U.S., there were park closures in Asia due to the pandemic. Shanghai Disney Resort was open for 78 days in the quarter and Hong Kong Disneyland Resort was open for only 3 days.
Numbers: Disney’s stock has been down 34% in the past six months.
Final Thoughts: Disney sits atop the streaming mountain, but the company is still exposed to macroeconomic risks, including from the pandemic.
Notable Earnings Today: Affirm Holdings (Nasdaq: AFRM), Six Flags Entertainment (NYSE: SIX), Veru (Nasdaq: VERU), Aurora Cannabis (Nasdaq: ACB), Himax Technologies (Nasdaq: HIMX), indie Semiconductors (Nasdaq: INDI), Tapestry (NYSE: TPR), Compass (NYSE: COMP), Brookfield Asset Management (NYSE: BAM), Immersion (Nasdaq: IMMR), Figs (NYSE: FIGS), Endava (NYSE: DAVA), Rockley Photonics Holdings (NYSE: RKLY), Crescent Point Energy (NYSE: CPG), Joby Aviation (NYSE: JOBY), Bakkt Holdings (NYSE: BKKT), Navitas Semiconductor (Nasdaq: NVTS), CyberArk Software (Nasdaq: CYBR), Motorola Solutions (NYSE: MSI), Carrols Restaurant Group (Nasdaq: TAST), Constellation Energy (Nasdaq: CEG), Duolingo (Nasdaq: DUOL), First Majestic Silver (NYSE: AG), Heritage Global (Nasdaq: HGBL), Laird Superfood (NYSEAMERICAN: LSF), LegalZoom.com (Nasdaq: LZ), PDF Solutions (Nasdaq: PDFS), Phunware (Nasdaq: PHUN), Poshmark (Nasdaq: POSH), Ryan Specialty Group Holdings (NYSE: RYAN), Siemens (OTCMKTS: SIEGY), Solo Brands (NYSE: DTC), Squarespace (NYSE: SQSP), Tata Motors (NYSE: TTM), Toast (NYSE: TOST), Utz Brands (NYSE: UTZ), VIZIO Holding (NYSE: VZIO), Zevia (NYSE: ZVIA).
Notable IPOs Today: ProFrac Holding Corp. (Nasdaq: PFHC), Intrinsic Medicine, Inc. (Nasdaq: INRX), SOS Hydration Inc. (Nasdaq: SOSH).
Notable Equity Crowdfunding Campaigns Ending Today: N/A.
Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Core PPI / PPI (8:30 a.m. ET), WASDE Report (12:00 p.m. ET).
Beyond Meat’s Declining Margins
Shares of Beyond Meat (Nasdaq: BYND) fell 21.28% in after-hours trading on Wednesday after the producer of plant-based substitutes posted negative financial earnings.
Financials: Beyond Meat reported a loss of $1.58 per share and revenue of $109.5 million; both were below estimates.
Margin Problems: The gross margin was only 0.2% of net revenues. The company attributed this “sizable though temporary reduction in the gross margin” due to the launch of Beyond Meat Jerky, which uses a complex and high-cost manufacturing process.
Final Thoughts: Bullish investors hope that Beyond Meat’s growing partnerships can increase sales.
Tech’s Biggest Laggards
Which verticals in the technology industry are struggling the most in 2022?
Details: Streaming companies dropped 37%, e-commerce companies are down 24.8%, search and social companies are down 21.1%, and semiconductor companies are down 20.6%, according to Axios.
Final Thoughts: While most companies in tech have struggled, these are the categories that have declined the most.
Trends to Watch
Special Delivery: Instacart Files Confidentially for IPO in US (Bloomberg)
Chapter 11 Ripoff: Coinbase warns users could lose their crypto holdings if the company goes bankrupt (Business Insider)
Low Expectations: Rivian shares rise, despite larger than expected loss (CNN)
Healthy Startups: Alira Health Acquires RedCrow, an Equity Crowdfunding Platform for Healthcare Startups (Business Wire)
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