Today is Thursday, May 5, 2022.
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Etsy's Disposable Income Mess
Shares of Etsy (Nasdaq: ETSY) dropped 10.83% in after-hours trading on Wednesday after the e-commerce company posted mixed financial earnings.
Financials: Etsy reported earnings of 60 cents per share, which was expected. Revenue hit $579 million in the quarter, which was better than expected.
Drop: Net income decreased 40% year-over-year in the quarter. The year-over-year sales increase, which is usually in the double digits, was only 5.2%.
Quote: “In the current macroeconomic environment, consumers have less disposable income and many more places to spend it, and while this creates a short-term headwind for sales on our marketplaces.” - Rachel Glaser, Etsy CFO.
Background: Etsy was one of the pandemic darlings that rose to prominence in 2020. Shares are down 57% in the past six months.
Final Thoughts: Most of Etsy’s business is concentrated in the United States. If the company targets the international market, there is room for growth.
Notable Earnings Today: Shopify (NYSE: SHOP), Block (NYSE: SQ), Crocs (Nasdaq: CROX), Fubotv (NYSE: FUBO), Penn National Gaming (Nasdaq: PENN), Lucid Group (Nasdaq: LCID), Datadog (Nasdaq: DDOG), Cloudflare (NYSE: NET), ConocoPhillips (NYSE: COP), Opendoor Technologies (Nasdaq: OPEN), Cameco (NYSE: CCJ), Mercadolibre (Nasdaq: MELI), Royal Caribbean Group (NYSE: RCL), ContextLogic (Nasdaq: WISH), EPAM Systems (NYSE: EPAM), DoorDash (NYSE: DASH), Virgin Galactic Holdings (NYSE: SPCE), Wayfair (NYSE: W), Vertex Pharmaceuticals (Nasdaq: VRTX), ACI Worldwide (Nasdaq: ACIW), Air Lease (NYSE: AL), Air Products & Chemicals (NYSE: APD), AMC Networks (Nasdaq: AMCX), Anheuser-Busch InBev (NYSE: BUD), Apollo Global Management (NYSE: APO), ArcelorMittal (NYSE: MT), Atlas Air Worldwide Holdings (AAWW), Ball (NYSE: BLL), Becton Dickinson (NYSE: BDX), Block (NYSE: SQ), Cardinal Health (NYSE: CAH), Chuy's Holdings (Nasdaq: CHUY), Clean Energy Fuels (Nasdaq: CLNE), Consolidated Edison (NYSE: ED), Corsair Gaming (Nasdaq: CRSR), DaVita (NYSE: DVA), Dominion Energy (NYSE: D), Dropbox (Nasdaq: DBX), Eagle Bulk Shipping (Nasdaq: EGLE), EOG Resources (NYSE: EOG), Floor & Decor Holdings (NYSE: FND), Funko (Nasdaq: FNKO), Gannett (NYSE: GCI), Gogo (Nasdaq: GOGO), Gold Fields (NYSE: GFI), GoPro (Nasdaq: GPRO), Hain Celestial Group (Nasdaq: HAIN), Hanesbrands (NYSE: HBI), HubSpot (NYSE: HUBS), Huntington Ingalls Industries (NYSE: HII), Illumina (Nasdaq: ILMN), Intercontinental Exchange (NYSE: ICE), Kellogg (NYSE: K), Kratos Defense & Security Solutions (Nasdaq: KTOS), LendingTree (Nasdaq: TREE), Live Nation Entertainment (NYSE: LYV), Magellan Midstream Partners (NYSE: MMP), Main Street Capital (NYSE: MAIN), Marriott Vacations Worldwide (NYSE: VAC), McKesson (NYSE: MCK), News Corp (Nasdaq: NWS), Nikola (Nasdaq: NKLA), Northern Oil & Gas (NYSE: NOG), NortonLifeLock (Nasdaq: NLOK), Olympic Steel (Nasdaq: ZEUS), Papa John's International (Nasdaq: PZZA), Parker Hannifin (NYSE: PH), Petroleo Brasileiro (NYSE: PBR), Potbelly (Nasdaq: PBPB), Puma Biotechnology (Nasdaq: PBYI), Quanta Services (NYSE: PWR), Republic Services (NYSE: RSG), Royalty Pharma (Nasdaq: RPRX), SailPoint Technologies Holdings (NYSE: SAIL), SeaWorld Entertainment (NYSE: SEAS), Shake Shack (NYSE: SHAK), Shell (NYSE: SHEL), SolarWinds (NYSE: SWI), Stellantis (NYSE: STLA), SunPower (Nasdaq: SPWR), Tanger Factory Outlet Centers (NYSE: SKT), Texas Roadhouse (Nasdaq: TXRH), Universal Display (Nasdaq: OLED), Unum Group (NYSE: UNM), Wheaton Precious Metals (NYSE: WPM), World Wrestling Entertainment (NYSE: WWE), WW International (Nasdaq: WW), Yelp (NYSE: YELP), Zillow Group (Nasdaq: Z), Zoetis (NYSE: ZTS), APA (Nasdaq: APA).
Notable IPOs Today: N/A.
Notable Equity Crowdfunding Campaigns Ending Today: N/A.
Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Nonfarm Productivity (8:30 a.m. ET), Unit Labor Costs (8:30 a.m. ET).
Booking Holdings is Ready for Summer
Shares of Booking Holdings (Nasdaq: BKNG) jumped 10.59% in after-hours trading on Wednesday after the travel tech company posted positive earnings.
Financials: Booking Holdings reported earnings per share of $3.90 and revenue of $2.7 billion; both were better than expected.
Quote: “We have seen continued strengthening of global travel trends so far in the second quarter of 2022, and we are preparing for a busy summer travel season ahead.” - Glenn Fogel, Booking Holdings CEO.
Bigger Picture: The company had a record $27 billion in gross bookings during the quarter. Booking Holdings, similar to Airbnb (Nasdaq: ABNB) and Avis Budget Group (Nasdaq: CAR), has seen a surge in travel demand.
Final Thoughts: Booking Holdings also warns about “an uncertain macroeconomic environment” in the future, which could include the impact of inflation.
The Current State of the Cryptocurrency Fear and Greed Index
What can the current data from the cryptocurrency Fear and Greed Index, which tracks the emotional state of the industry, tell us about crypto so far in 2022?
Data: After situating itself somewhere between extreme greed and extreme fear in late March, the chart has swung more in the extreme fear direction.
Final Thoughts: In the past week, the number has been in the 20s, which on a scale of 1 to 100, suggests more extreme fear than greed.
Trends to Watch
Changes: Google to remove bi-annual performance reviews after workers complain (Seeking Alpha)
That Was Quick: EstateGuru Returns to Crowdfunding, Quickly Tops Funding Target on Seedrs (Crowdfund Insider)
The First: California becomes first state to try to regulate cryptocurrency (Fortune)
Bad Outlook: EBay deepens e-commerce gloom with disappointing forecast (Reuters)
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