Today is Friday, February 11, 2022.
New to this newsletter? Sign up here.
Affirm Falls 21% Due to Tweet
Shares of Affirm (Nasdaq: AFRM) fell 21.42% on Thursday during trading hours and dropped another 7.29% in after-hours trading after the fintech company posted bad earnings.
Financials: Affirm reported a 57-cent loss per share. The company also reported revenue of $361 million, which was better than expected.
Bad Guidance: It was the guidance that really stung Affirm. The company projects revenue in the upcoming quarter between $325 million to $335 million, and adjusted operating loss as a percentage of revenue between 19% to 21%. Investors had higher expectations.
Bad Tweet: The company’s official Twitter account inadvertently tweeted the financial results during trading hours - long before the earnings call, which caused a massive slide in the stock price.
Background: Affirm is a “buy now, pay later" company, which gives customers short-term loans to buy items. The stock is down 64% in the past three months.
The Good: The number of active consumers grew by 150% in the quarter.
Final Thoughts: When will Affirm finally achieve profitability? Can its partnership with Amazon (Nasdaq: AMZN) help grow the business?
Notable Earnings Today: Cleveland-Cliffs (NYSE: CLF), Under Armour (NYSE: UAA), Goodyear Tire & Rubber (Nasdaq: GT), Enbridge (NYSE: ENB), Magna International (NYSEL MGA), Apollo Global Management (NYSE: APO), Byrna Technologies (Nasdaq: BYRN), Newell Brands (Nasdaq: NWL), Alliancebernstein (NYSE: AB), Dominion Energy (NYSE: D), American Axle & Manufacturing (NYSE: AXL), Ares Management (NYSE: ARES), Fortis (NYSE: FTS), Green Plains (Nasdaq: GPRE), W. P. Carey (NYSE: WPC).
Notable IPOs Today: Modiv Inc. (NYSE: MDV), RiverNorth Managed Duration Municipal Income Fund II, Inc. (Nasdaq: RMMZ), CEA Industries Inc. Common Stock (Nasdaq: CEAD), A SPAC I Acquisition Corp. Unit (Nasdaq: ASCAU), Jaguar Global Growth Corporation I Unit (Nasdaq: JGGCU), Direct Digital Holdings, Inc. Class A Common Stock (Nasdaq: DRCT), Arogo Capital Acquisition Corp. Class A Common Stock (Nasdaq: AOGO), Relativity Acquisition Corp. Unit (Nasdaq: RACYU), TC BioPharm (Holdings) plc American Depositary Shares (Nasdaq:n TCBP), Signal Hill Acquisition Corp. Unit (Nasdaq: SGHLU), Gaming Technologies, Inc. Common Stock (Nasdaq: GMGT).
Notable Equity Crowdfunding Campaigns Ending Today: Speakeasy Donuts (MainVest), Wicked BOLD (MainVest), Chewy’s Bagels (MainVest), Brakes To Go (StartEngine), I & I Rose Garden (MainVest), Recombinant Technologies (StartEngine).
Notable Economic Events Today: Fed Monetary Policy Report (10:00 a.m. ET), Michigan Consumer Expectations (10:00 a.m. ET), Michigan Consumer Sentiment (10:00 a.m. ET).
Zillow’s Home Segment Propels Earnings
Photo by Jacques Bopp / Unsplash
Shares of Zillow (Nasdaq: Z) jumped 17.03% in after-hours trading on Thursday after the real estate marketplace posted positive earnings
Financials: Revenue hit $3.9 billion in the quarter, which was better than expected.
Go Home: The quarter included $3.3 billion of revenue in its home segment, exceeding the company’s outlook as the wind-down of the iBuying segment progressed at a faster rate.
Final Thoughts: In the past year, Zillow’s stock has been down 74%. This might be an opportunity to buy in at the right price.
What Should Investors Do In February 2022?
Following a turbulent start to the year, what should investors plan to do in February?
Diversify: If there was ever a time to focus on diversification, this is it. Some of the stocks that did well last year are now tanking, including big technology names. It is time to have a portfolio with stocks in all of the major sectors.
Expect Less: It is also time to readjust your expectations. 2022 may not be a year of record growth, but achieving a modest return could still happen.
Final Thoughts: February could also be a good month to buy the dip on stocks that tanked in January.
Trends to Watch
Rising: Bitcoin defies Wall Street's inflation selloff, adds gains as cryptocurrencies dip (Yahoo! Finance)
Welcome: Nordson set to join S&P 500, PDC Energy moves to MidCap 400 (Seeking Alpha)
Bright Future: Analysts say Bitcoin’s range-bound trading at a key support level reflects a trend reversal (Cointelegraph)
Thank you for reading!
Forward to a friend and tell them to sign up here.
Want more investing tips? Listen to the podcast.
Questions or comments? Hit reply to reach out.