Today is Friday, February 24, 2023.
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Warner Bros. Discovery LOTR
Despite posting really bad financial earnings, shares of Warner Bros. Discovery (Nasdaq: WBD) only dropped by 1.53% in after-hours trading on Thursday.
Financials: Warner Bros. Discovery reported a loss of 86 cents per share in the quarter and revenue of $11.01 billion; both were below estimates.
Streaming: The company’s global direct-to-consumer subscriber base increased by 1.1 million to 96.1 million in total. But, investors were hoping for more subscribers. The streaming business lost $217 million, which was better than expected.
Drop: Revenue for television networks declined from the previous year.
But: Warner Bros. Discovery also announced that it was working on new “Lord of the Rings” (LOTR) films, which created some positive buzz for investors.
Stock Price: The stock is down 38% in the last 12 months but is up 17% in the last 30 days.
Final Thoughts: Warner Bros. Discovery went through some major restructuring in the past year. While the company is moving on, its balance sheet is still problematic due to debt.
Notable Earnings Today: EOG Resources (NYSE: EOG), HF Sinclair (NYSE: DINO), Chart Industries (NYSE: GTLS), CIBC (NYSE: CM), Cinemark (NYSE: CNK), Icahn Enterprises (Nasdaq: IEP), Taboola (Nasdaq: TBLA), Gray Television (NYSE: GTN), ACM Research (Nasdaq: ACMR), Barings BDC (NYSE: BBDC), Brady (NYSE: BRC), Carter's (NYSE: CRI), Lamar Advertising (Nasdaq: LAMR), E.W. Scripps (Nasdaq: SSP), U.S. Silica (NYSE: SLCA).
Notable IPOs Today: NYIAX, INC. (Nasdaq: NYX).
Notable Equity Crowdfunding Campaigns Ending Today: CTZN (Mainvest), Thin Film Interconnects (Title3Funds).
Notable Economic Events Today: Core PCE Price Index / PCE Price Index (8:30 a.m. ET), Personal Spending (8:30 a.m. ET), New Home Sales (10:00 a.m. ET), Michigan Consumer Expectations / Sentiment (10:00 a.m. ET).
Block’s “Biggest Differentiator”
Photo by Christiann Koepke / Unsplash
Shares of Square parent Block (NYSE: SQ) jumped 8.71% in after-hours trading on Thursday after the financial technology company posted good financial results.
Financials: Block reported earnings of 22 cents per share in the quarter, which was below estimates. Revenue hit $4.65 billion, which was better than expected.
Details: Overall gross profit grew 40% to $1.66 billion. Square’s gross profit increased by 22% and Cash App, its mobile payment service, saw gross profit rise by 64%.
Quote: “The breadth and cohesion of our Square ecosystem continued to be our biggest differentiator.” - Block wrote in its earnings release.
But: Sales for Bitcoin dropped 7% to $1.83 billion in the quarter.
Final Thoughts: Block's crypto business is still a headwind for the company. And despite the overall positive results, Block still lags behind other fintech players.
Carvana Keeps Losing
Carvana (NYSE: CVNA) posted bad financial results, sending shares of the online used car retailer down by 3.97% in after-hours trading on Thursday.
Financials: Carvana reported a loss of $7.61 per share in the quarter and revenue of $2.84 billion; both were below estimates.
Details: Revenue and the number of units sold both dropped in the quarter.
Final Thoughts: Down 92% in the last 12 months, Carvana is still in a bad place.
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Trends to Watch
Grounded: Boeing Halts 787 Dreamliner Jet Deliveries Due to Documentation Issue (The Wall Street Journal)
Revenge Travel: Booking Holdings says quarterly revenue up 36% on strong travel demand (Reuters)
Unbearable: Bitcoin bears attempt to pin BTC price under $23K ahead of this month’s options expiry (Cointelegraph)
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