Today is Thursday, July 28, 2022.
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Facebook's Weak Ad Demand
Shares of Facebook’s parent company Meta Platforms (Nasdaq: META) dropped 4.65% in after-hours trading on Wednesday after the tech giant posted disappointing financial earnings.
Details: Meta reported earnings per share of $2.46 and revenue of $28.82 billion; both were below estimates.
Hit and Miss: Daily active users on Facebook were 1.97 billion, which was better than expected. But monthly active users were 2.93 billion, which was below estimates.
Outlook: Meta projected its third-quarter revenue to be between $26 billion to $28.5 billion, which was below estimates. The company said the outlook “reflects a continuation of the weak advertising demand environment we experienced throughout the second quarter.” Meta anticipates lower revenue for Reality Labs and a foreign currency headwind of 6%.
Final Thoughts: It’s the first-ever decline in revenue growth for Meta. The stock is down nearly 50% this year as it struggles to stay relevant against competitors such as TikTok.
Notable Earnings Today: Amazon.com (Nasdaq: AMZN), Apple (Nasdaq: AAPL), Tilray (Nasdaq: TLRY), Pfizer (NYSE: PFE), Baxter International (NYSE: BAX), Roku (Nasdaq: ROKU), Valero Energy (NYSE: VLO), Intel (Nasdaq: INTC), Southwest Airlines (NYSE: LUV), U.S. Steel (NYSE: X), Mastercard (NYSE: MA), KLA Corp. (Nasdaq: KLAC), Merck (NYSE: MRK), Edwards Lifesciences (NYSE: EW), Altria Group (MO), DexCom (DXCM), Peabody Energy (BTU), Hercules Capital (NYSE: HTGC), Hertz Global Holdings (Nasdaq: HTZ), Yamana Gold (NYSE: AUY), A. O. Smith (NYSE: AOS), AGCO (NYSE: AGCO), American Tower (NYSE: AMT), Ares Management (NYSE: ARES), Asbury Automotive Group (NYSE: ABG), Beazer Homes (NYSE: BZH), Camden Property Trust (NYSE: CPT), Celanese (NYSE: CE), Chemours (NYSE: CC), Cohu (Nasdaq: COHU), Comcast (Nasdaq: CMCSA), Continental Resources (NYSE: CLR), Deckers Outdoor (NYSE: DECK), Diana Shipping (NYSE: DSX), Digital Realty Trust (NYSE: DLR), Eldorado Gold (NYSE: EGO), Federated Hermes (NYSE: FHI), First Solar (Nasdaq: FSLR), Fortis (NYSE: FTS), Franklin Resources (NYSE: BEN), Gaming and Leisure Properties (Nasdaq: GLPI), Harley-Davidson (NYSE: HOG), Hartford Financial Services Group (NYSE: HIG), Hershey (NYSE: HSY), Keurig Dr Pepper (Nasdaq: KDP), Laboratory Corp. of America (NYSE: LH), MDC Holdings (NYSE: MDC), Magellan Midstream Partners (NYSE: MMP), Martin Marietta Materials (NYSE: MLM), Mohawk Industries (NYSE: MHK), Northrop Grumman (NYSE: NOC), Olin (NYSE: OLN), Oshkosh (NYSE: OSK), Overstock.com (Nasdaq: OSTK), PG&E (NYSE: PCG), Pitney Bowes (NYSE: PBI), Seagen (Nasdaq: SGEN), Sirius XM Holdings (Nasdaq: SIRI), Southern Co. (NYSE: SO), Stanley Black & Decker (NYSE: SWK), T Rowe Price Group (Nasdaq: TROW), Texas Roadhouse (Nasdaq: TXRH), VF Corp (NYSE: VFC), Verisign (Nasdaq: VRSN), Weatherford International (Nasdaq: WFRD), Wingstop (Nasdaq: WING), Zendesk (NYSE: ZEN).
Notable IPOs Today: MAIA Biotechnology, Inc. (NYSE: MAIA), Dorchester Capital Acquisition Corp. (NYSE: DSPKU), ECB Bancorp, Inc. /MD/ (Nasdaq: ECBK).
Notable Equity Crowdfunding Campaigns Ending Today: Daxbot (StartEngine), Revolution MD (StartEngine), CHELLY (StartEngine), AvaWatz (StartEngine), Avadain (Netcapital), Wellness Sushi (SMBX), Renewable Energy Products Manufacturing (StartEngine).
Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Gross Domestic Product (8:30 a.m. ET).
Ford Expects Good EV Margins
Shares of Ford (NYSE: F) jumped 6.37% in after-hours trading on Wednesday after the automobile manufacturer posted positive financial earnings.
Details: Ford reported earnings of 68 cents per share and revenue of $37.8 billion; both were better than expected.
Final Thoughts: Although Ford is dealing with inflation and higher commodity costs, the company expects to hit an 8% margin for its electric vehicle unit and is raising its dividend.
Spirit Ends Frontier Deal
Final Thoughts: Shares of Spirit jumped 2.06% in after-hours trading on Wednesday while Frontier’s stock dropped 1.33%.
Trends to Watch
Here We Go Again: Fed hikes interest rates by 0.75 to help ease inflation, cool demand (Insider)
Retail Apocalypse: Best Buy Follows Walmart, Target With Cut to Profit Forecast (Bloomberg)
Questioning: Bitcoin Maximalist Michael Saylor Makes the Case Against Ethereum (CoinDesk)
Someone Call a Doctor: Teladoc loses $3 billion in three months, stock plummets (MarketWatch)
Lights, Camera, Action: Untold.io Launches Securities Crowdfunding Platform for the Entertainment Industry (Crowdfund Insider)
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