Pinterest's Low Single Digits
Plus, Bed Bath & Beyond's wild day.
Today is Tuesday, February 7, 2023.
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Pinterest's Low Single Digits
Pinterest (NYSE: PINS) slipped 2.01% in after-hours trading on Monday after the social media platform posted mixed financial quarterly results.
Financials: Pinterest reported earnings of 29 cents per share in the quarter, which was better than expected. But revenue only reached $877 million, which was lower than expected.
Details: Global Monthly Active Users grew 4% year over year to 450 million, but that was lower than expected.
Powering the Story: The company anticipates that its revenue in the current quarter will grow in the “low single digits,” but analysts wanted more. Pinterest said it is adapting to a “changing macro environment.”
Also: Pinterest announced that CFO Todd Morgenfeld will step down on July 1.
But: There was one piece of good news for investors: Pinterest introduced a stock buyback of up to $500 million.
Final Thoughts: Pinterest is one of the few positive social media stocks over the past year, with shares up 5% in the past 12 months. But with layoffs happening, can the company continue to grow its market share?
Notable Earnings Today: Chipotle Mexican Grill (NYSE: CMG), Royal Caribbean (NYSE: RCL), Enphase Energy (Nasdaq: ENPH), BP (NYSE: BP), The Carlyle Group (Nasdaq: CH), Fortinet (Nasdaq: FTNT), Hertz Global (Nasdaq: HTZ), Paycom Software (NYSE: PAYC), AGCO (NYSE: AGCO), Lumen Technologies (NYSE: LUMN), Centene (NYSE: CNC), Vertex Pharmaceuticals (Nasdaq: VRTX), Jacobs Engineering (NYSE: J), Illumina (Nasdaq: ILMN), DuPont (NYSE: DD), V.F. Corp (NYSE: VFC), Linde (NYSE: LIN), Prudential (NYSE: PRU), Fiserv (Nasdaq: FISV), Atmos Energy (NYSE: ATO), Assurant (NYSE: AIZ), Douglas Emmett (NYSE: DEI), Essex Property (NYSE: ESS), Gartner (NYSE: IT), Graphic Packaging (NYSE: GPK), H&R Block (NYSE: HRB), Hain Celestial (Nasdaq: HAIN), Incyte (Nasdaq: INCY), KKR (NYSE: KKR), Spirit Aerosystems (NYSE: SPR), Valvoline (NYSE:VVV), Western Union (NYSE: WU), Yum China (NYSE: YUMC).
Notable IPOs Today: Bullfrog AI Holdings, Inc. Common Stock (Nasdaq: BFRG), WisdomTree Voya Yield Enhanced USD Universal Bond Fund (Nasdaq: UNIY).
Notable Equity Crowdfunding Campaigns Ending Today: FLOLiO (StartEngine), Joule Case (Wefunder), Project Transcend (StartEngine), Phuc Labs (Republic).
Notable Economic Events Today: Trade Balance (8:30 a.m. ET), Short-Term Energy Outlook (12:00 p.m. ET), API Weekly Crude Oil Stock (4:30 p.m. ET).
Bed Bath & Beyond Soars and Falls
Shares of Bed Bath & Beyond (Nasdaq: BBBY) leaped 92% as part of a meme stock rally on Monday, only to plummet 36.52% in after-hours trading after announcing a convertible stock offering.
Details: The company intends to raise over $1 billion from the offering of Series A Preferred Stock in order to repay loans.
Background: Bed Bath & Beyond, down 63% over the last 12 months, faces potential bankruptcy.
Final Thoughts: The company is still in financial peril and is a very risky investment.
CVS Reportedly Nearing Oak Street Health Deal
Shares of Oak Street Health (NYSE: OSH) jumped 37.52% in after-hours trading on Monday after The Wall Street Journal reported that CVS Health (NYSE: CVS) is nearing a $10.5 billion deal to acquire it.
Final Thoughts: News of a potential acquisition first broke in January. A finanlized deal could be announced as soon as this week, according to the report. CVS Health reports earnings on Wednesday.
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Trends to Watch
Same Old, Same Old: Bitcoin Holds Steady Near $23K as Investors Weigh Their Next Steps (CoinDesk)
Bad Holiday: Take-Two Lowers Guidance, Plans Cost-Cutting Amid “Challenging” Gaming Market (The Hollywood Reporter)
Game Over: Microsoft’s Activision Deal Tests a New Global Alignment on Antitrust (The New York Times)
Rough Landing: Boeing says it will cut about 2,000 white-collar jobs in finance and HR (Reuters)
Forbidden: Crypto exchange Binance will suspend U.S. dollar transfers (CNBC)
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