Airbnb’s Profit is Not Enough

Today is Wednesday, November 2, 2022.

New to this newsletter? Sign up here.

Airbnb’s Profit is Not Enough

It was the “biggest and most profitable quarter” in the history of Airbnb (Nasdaq: ABNB), but shares of the lodging company still fell 5.36% in after-hours trading on Tuesday.

Financials: Airbnb reported earnings of $1.79 per share and revenue of $2.88 billion; both were better than expected.

Big Growth: Revenue increased by 29%. Nights and Experiences booked grew by 25%. Net income hit $1.2 billion, which is up 46% from last year. Airbnb says that travel demand is still strong.

Not So Fast: In the fourth quarter, Airbnb says its Nights and Experiences booking growth will “moderate slightly.” The company also sees pressure from foreign exchange headwinds.

Stock Price: Airbnb’s stock is down 36% this year, but is up 3% in the last 30 days.

Final Thoughts: The company’s fourth-quarter outlook was a real letdown for investors. Will other travel companies see the same issues?

Notables

Notable Earnings Today: CVS Health (NYSE: CVS), Roku (Nasdaq: ROKU), Generac (NSYSE: GNRC), Qualcomm (Nasdaq: QCOM), Cenovus Energy (NYSE: CVE), Marathon Oil (NYSE: MRO), Humana (NYSE: HUM), Robinhood Markets (Nasdzq: HOOD), Paramount Global (Nasdaq: PARA), Etsy (Nasdaq: ETSY), Estee Lauder (NYSE: EL) GSK (NYSE; GSK), Albemarle (NYSE: ALB), Canada Goose (NYSE: GOOS), Lumen Technologies (NYSE: LUMN), Cedar Fair (NYSE: FUN), Fortinet (Nasdaq: FTNT), Western Midstream Partners (NYSE: WES), ACI Worldwide (Nasdaq: ACIW), Allegiant Travel (Nasdaq: ALGT), Apollo Global Management (NYSE: APO), Booking Holdings (Nasdaq: BKNG), Brinker (NYSE: EAT), C.H. Robinsoon Worldwide (Nasdaq: CHRW), Dine Brands (NYSE: DIN), eBay (Nasdaq: EBAY), Entergy (NYSE: ETR), Fastly (NYSE: FSLY), Ferrari (NYSE: RACE), Hostess Brands (Nasdaq: TWNK), iRobot (Nasdaq: IRBT), LL Flooring Holdings (NYSE: LL), Martin Marieta Materials (NYSE: MLM), Matterport (Nasdaq: MTTR), MetLife (NYSE: MET), MGM Resorts (BTSE: MGM), Nutrien (NTR), Realty Income (NYSE: O), Sturm Ruger (NYSE: RGR), Transocean (NYSE: RIG), Zillow (Nasdaq: Z).

Notable IPOs Today: Infinite Group, Inc. Common Stock (Nasdaq: IMCI).

Notable Equity Crowdfunding Campaigns Ending Today: Geoji (StartEngine), A Band of Anglers (StartEngine), Injaga (Mainvest), Loxsmith Bagels (SMBX), Lambs (Republic).

Notable Economic Events Today: ADP Nonfarm Employment Change (8:15 a.m. ET), Crude Oil Inventories (10:30 a.m. ET), FOMC Statement (2:00 p.m. ET).

Dogecoin Continues Climb Due to Musk Tweet

Source: @elonmusk/Twitter

The price of the cryptocurrency Dogecoin jumped 7% on Tuesday after Elon Musk, an advocate for the digital currency, posted a Halloween photo of a dog on Twitter along with a winking face emoji.

Final Thoughts: While most cryptos have performed well over the past month, Musk’s acquisition of Twitter has helped Dogecoin’s price more than double in that time. The meme-frenzy also resulted in Shiba Inu prices jumping 3% on Tuesday.

Rogers Falls After Dupont Deal Falls Apart

Shares of the materials company Rogers Corporation (NYSE: ROG) declined 42.48% in after-hours trading on Tuesday after DuPont (NYSE: DD) terminated its deal to acquire the company.

Details: DuPont said that the company has been unable to obtain timely clearance from regulators for the acquisition. By getting out of the deal, DuPont will pay a termination fee of $162.5 million.

Final Thoughts: The acquisition has been in the works for over a year, but regulatory issues prevented the deal from closing. DuPont’s stock went up 5.62% in after-hours trading because of the news.

Trends to Watch

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.