Today is Thursday, October 27, 2022.
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Investors Detest Zuckerberg
Weak earnings and guidance hit Facebook parent Meta Platforms (Nasdaq: META) on Wednesday, causing the stock to decline 19.66% in after-hours trading.
Financials: Meta reported earnings of $1.64 per share, which was below estimates. Revenue hit $27.71 billion, which was better than expected.
Up and Down: While the number of daily active users increased by 3%, the average price per ad dropped by 18%. This resulted in a total revenue decrease of 4%.
Outlook: Meta expects its fourth-quarter revenue to be in the range of $30 billion to $32.5 billion, which is lower than expected.
Reality Check: Operating losses for Reality Labs, Meta’s virtual reality unit, is expected to increase “significantly” next year.
Expenses: The company is also trying to cut down costs by decreasing its office footprint. Headcount is expected to remain flat through the end of 2023.
Final Thoughts: Meta’s stock is down 61% this year. Between the weak online ad business and its money-losing virtual reality unit, investors are not happy with Zuckerberg.
Notable Earnings Today: Amazon.com (Nasdaq: AMZN), Apple (Nasdaq: AAPL), Shopify (NYSE: SHOP), McDonald's (NYSE: MCD), Caterpillar (NYSE: CAT), Intel (Nasdaq: INTC), Southwest Air (LUV), Arthur J. Gallagher & Co. (NYSE: AJG), Mastercard (NYSE: MA), Pinterest (NYSE: PINS), Merck (NYSE: MRK), U.S. Steel (NYSE: X), Cameco (NYSE: CCJ), T-Mobile US (Nasdaq: TMUS), Altria (NYSE: MO), Southwestern Energy (NYSE: SWN), Comcast (Nasdaq: CMCSA), Gilead Sciences (Nasdaq: GILD), First Solar (Nasdaq: FSLR), American Tower (NYSE: AMT), Anheuser-Busch InBev (NYSE: BUD), Ares Management (NYSE: ARES), AutoNation (NYSE: AN), BorgWarner (NYSE: BWA), Capital One (NYSE: COF), Cohu (Nasdaq: COHU), CubeSmart (NYSE: CUBE), Deckers Outdoor (NYSE: DECK), Dexcom (Nasdaq: DXCM), Eastman Chemical (NYSE: EMN), Fiserv (Nasdaq” FISV), Gaming and Leisure Properties (Nasdaq: GLPI), Hertz Global (Nasdaq: HTZ), Honeywell (Nasdaq: HON), Intel (INTC), International Paper (IP), Keurig Dr Pepper (KDP), Laboratory Corp. of America (LH), Linde (NYSE: LIN), Northrop Grumman (NYSE: NOC), Oshkosh (NYSE: OSK), Overstock.com (Nasdaq: OSTK), Royal Caribbean (NYSE: RCL), S&P Global (NYSE: SPGI), Southern (NYSE: SO), Stanley Black & Decker (NYSE: SWK), STMicroelectronics (NYSE: STM), T. Rowe Price (Nasdaq: TROW), Twitter (NYSE: TWTR), VeriSign (Nasdaq: VRSN), Weyerhaeuser (NYSE: WY), Western Digital (Nasdaq: WDC), Willis Towers Watson (Nasdaq: WTW), Yamana Gold (NYSE: AUY).
Notable IPOs Today: Selina Hospitality PLC Ordinary Shares (Nasdaq: SLNA).
Notable Equity Crowdfunding Campaigns Ending Today: Dome Audio (PicMii), Espre Technologies (StartEngine), Beach Box (StartEngine), Paway (StartEngine).
Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Core Durable Goods Orders (8:30 a.m. ET), GDP (8:30 a.m. ET).
Dogecoin’s Musk Twitter Bounce
The price of the cryptocurrency Dogecoin jumped over 15% on Wednesday as Elon Musk, who is a big promoter of the popular meme coin, appears to close in on his deal to acquire Twitter (NYSE: TWTR).
Final Thoughts: It’s been a good week overall for most cryptos. Falling interest rates have made riskier investments (such as crypto) seem better.
Ford Winding Down Argo AI Unit
Shares of Ford (NYSE: F) dropped 1.33% in after-hours trading on Wednesday after the company announced that it recorded a $2.7 billion non-cash pretax impairment because it will wind down Argo AI, its autonomous vehicle unit.
Final Thoughts: Despite the Argo AI impairment, the company's overall earnings and revenue were better than expected.
Trends to Watch
Healthier: Teladoc stock surges after earnings as losses narrow (MarketWatch)
Being Bearish: Bitcoin, Ether Price Surge May Not Last: Crypto Markets Analysis (CoinDesk)
No Fly Zone: Airlines Need New Planes, but the Supply Chain Has Other Ideas (The New York Times)
Welcome to the Public Markets: Mobileye pops more than 37% in market debut after spinning out of Intel (CNBC)
Joining the Pack: Retail Investors Bought the Dip in U.S.-Listed China Stocks, Vanda Says (The Wall Street Journal)
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