Facebook's Weak Ad Demand

Plus, Ford's good EV margins.

Steven Lerner
Steven Lerner

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

Photo by Dan Dennis / Unsplash

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

Spirit Airlines (SAVE) is terminating the proposed merger agreement with Frontier Group Holdings (ULCC) while continuing to have discussions on a potential sale to JetBlue (Nasdaq: JBLU).

Final Thoughts: Shares of Spirit jumped 2.06% in after-hours trading on Wednesday while Frontier’s stock dropped 1.33%.

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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