Today is Wednesday, February 15, 2023.
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Airbnb’s Strong Guest Demand
Strong financial results sent shares of Airbnb (Nasdaq: ABNB) up 9.95% in after-hours trading on Tuesday.
Financials: Airbnb reported earnings of 48 cents per share in the quarter and revenue of $1.9 billion; both were better than expected.
Details: Revenue increased by 24% year-over-year and it was the most profitable fourth quarter in the company’s history. Airbnb attributed its success due to strong guest demand.
Outlook: The company predicts that strong guest demand will continue in 2023. Airbnb expects revenue of $1.75 billion to $1.82 billion in the first quarter, which is better than expected.
But: Airbnb expects its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) to be flat due to lower average daily rates.
Final Thoughts: It was a successful quarter for Airbnb. Demand is strong in travel and Airbnb is a good travel stock, although the stock price isn’t exactly at a low value.
Notable Earnings Today: Cisco Systems (Nasdaq: CSCO), Roblox (NYSE: RBLX), Shopify (NYSE: SHOP), The Trade Desk (Nasdaq: TTD), Roku (Nasdaq: ROKU), Barrick Gold (NYSE: GOLD), Energy Transfer (NYSE: ET), Generac (NYSE: GNRC), Kraft Heinz (Nasdaq: KHC), Marathon Oil (NYSE: MRO), Biogen (Nasdaq: BIIB), Albemarle (NYSE: ALB), Analog Devices (Nadaaq: ADI), Twilio (NYSE: TWLO), Sunoco (NYSE: SUN), CF Industries (NYSE: CF), Krispy Kreme (Nasdaq: DNUT), EQT (NYSE: EQT), Ryder System (NYSE:R), SunPower (Nasdaq: SPWR), American International Group (NYSE: AIG), American Water Works (NYSE: AWK), Boston Beer (NYSE: SAM), Choice Hotels (NYSE: CHH), Community Health (NYSE: CYH), Equinix (Nasdaq: EQIX), Hecla Mining (NYSE: HL), InterDigital (Nasdaq: IDCC), Invitation Homes (NYSE: INVH), Lithia Motors (NYSE: LAD), Martin Marietta Materials (NYSE: MLM), Nutrien (NYSE: NTR), Owens Corning (NYSE: OC), Seagen (Nasdaq: SGEN), STAG Industrial (NYSE: STAG), Synopsys (Nasdaq: SNPS), Upwork (Nasdaq: UPWK), Wyndham Hotels & Resorts (NYSE: WH), Zillow (Nasdaq: ZG).
Notable IPOs Today: SONDORS Inc. Common Stock (Nasdaq: SODR), Alopexx, Inc. (Nasdaq: ALPX), Interactive Strength, Inc. (Nasdaq: TRNR), Distoken Acquisition Corporation Unit (Nasdaq: DISTU), The NFT Gaming Company, Inc. Common Stock (Nasdaq: NFTG).
Notable Equity Crowdfunding Campaigns Ending Today: CovInnovations (StartEngine), Petrolhead Cafe (Mainvest), REUZEit (StartEngine).
Notable Economic Events Today: Retail Sales / Core Retail Sales (8:30 a.m. ET), NY Empire State Manufacturing Index (8:30 a.m. ET), Industrial Production (9:15 a.m. ET), Business Inventories (10:00 a.m. ET), Retail Inventories (10:00 a.m. ET), Crude Oil Inventories (10:30 a.m. ET), TIC Net Long-Term Transactions (4:00 p.m. ET).
Upstart’s Big Drop, Bad Outlook
Photo by Towfiqu barbhuiya / Unsplash
Shares of Upstart Holdings (Nasdaq: UPST) dropped 4.21% in after-hours trading on Tuesday after posting its financial results.
Financials: Upstart reported a loss of 25 cents per share in the quarter and revenue of $147 million; both were better than expected.
Final Thoughts: The problem with this fintech company is that its revenue dropped by 50% since last year. Also, its revenue guidance for the current quarter was lower than expected.
Are Bonds a Good Deal in 2023?
After a bad 2022, are bonds becoming an attractive option for investors in 2023?
Numbers: Bonds produced a return of -13% in 2022, according to the Bloomberg U.S. Agg. Index. So far in 2023, the index shows that bonds are up 3%.
Final Thoughts: Bonds may not be the coolest option for investors, but in case there’s more volatility in the market, they can provide some protection.
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Trends to Watch
Low Energy: Devon Energy Shares Fall 5.2% After Hours on 4Q Profit Decline, 1Q Production Warning (MarketWatch)
To the Moon: Canine Crypto Coins Jump After Elon Musk Sends DOGE-Themed Tweet (CoinDesk)
Reshuffle: Biden announces new economic team led by Lael Brainard of the Federal Reserve (NBC News)
Trimming: Berkshire Hathaway cuts Activision stake as Microsoft deal flounders (Financial Times)
Large Order: Boeing lands massive Air India order, but still loses out to Airbus (CNN)
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