Zoom's U.S. Dollar Performance
Plus, fintech lender problems.
Today is Tuesday, August 23, 2022.
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Zoom's U.S. Dollar Performance
Shares of Zoom (Nasdaq: ZM) dropped 8.30% in after-hours trading on Monday after the communications technology company posted disappointing financial earnings.
Financials: Zoom reported earnings of $1.05 per share and revenue of $1.1 billion; both were below estimates.
The Good: It was the fifth straight quarter with revenue of over $1 billion.
The Bad: Revenue growth was 8%, which was lower than expected. The company sees revenue for the full year in the range of $4.385 billion to $4.395 billion, which is also lower. Cash flow dropped year-over-year.
Dollar, Dollar: Zoom blamed the “strengthening of the U.S. dollar” for its revenue problems.
Numbers: Zoom’s stock is down 47% in 2022 and 8% in the past 30 days.
Final Thoughts: Zoom was struggling to survive in a post-lockdown world, and now these dollar problems are an issue. The company hopes that its enterprise sales can help.
Notable Earnings Today: Macy's (NYSE: M), Intuit (Nasdaq: INTU), XPeng (NYSE: XPEV), Nordstrom (NYSE: JWN), JD.com (Nasdaq: JD), Advance Auto Parts (NYSE: AAP), Dick's Sporting Goods (NYSE: DKS), Toll Brothers (NYSE: TOL), Medtronic (NYSE: MDT), Urban Outfitters (Nasdaq: URBN), GDS Holdings (Nasdaq: GDS), Absolute Software (Nasdaq: ABST), J.M. Smucker (NYSE: SJM), La-Z-Boy (NYSE: LZB), Dole (NYSE: DOL), Caleres (NYSE: CAL), Bank of Nova Scotia (NYSE: BNS), ScanSource (Nasdaq: SCSC), Aviat Networks (Nasdaq: AVNW), Paycor (Nasdaq: PYCR), Noah Holdings (NYSE: NOAH).
Notable IPOs Today: Starbox Group Holdings Ltd. Ordinary Shares (Nasdaq: STBX)
Notable Equity Crowdfunding Campaigns Ending Today: CheeseButta (SMBX), Field Number Fifteen (Honeycomb), Bold Conscious Leaders (Netcapital).
Notable Economic Events Today: Manufacturing PMI (9:45 a.m. ET), Services PMI (9:45 a.m. ET), New Home Sales (10:00 a.m. ET), API Weekly Crude Oil Stock (4:30 p.m. ET).
Fintech Lender Stocks Under Pressure in 2022
It’s a rough time to be an investor in fintech lending stocks, with many companies struggling to grow.
Numbers: Traditional lending stocks such as TransUnion (NYSE: TRU) are down about 32% this year. But that’s nothing compared to the consumer lenders in Fintech. Upstart (Nasdaq: UPST) is down about 81% and Carvana (NYSE: CVNA) is down about 85%.
Challenge: Rising interest rates have made it more difficult to offer loans to consumers. Companies that don’t have long-standing track records in the space are especially suffering.
Final Thoughts: This could all end with a lot of consolidation among struggling fintech lenders in the consumer space. But until then, the end of suffering is not in sight.
Equity Crowdfunding Spotlight: Fishies
Briefly describe your business. Fishies premium pescatarian pet treats are handmade from just five healthy locally sourced ingredients including upcycled fish scraps from our seafood restaurant.
What are the terms of the investment for your campaign? Funding Goal $35,000 - $45,000. Investment Type: Debt, Loan Term, 60 months. See Honeycomb for details.
What makes your startup special? We love our pets. We intend to meet the demands of the global shift toward sustainability and reducing food waste. We have a major opportunity to cross-market Fishies to our loyal restaurant patrons to whom we've test marketed.
Trends to Watch
Down and Up: Ethereum Merge Drama Continues as Traders Pile Out, Then Back In (CoinDesk)
Not a Hollywood Ending: AMC shares plummet as rival Cineworld warns of possible bankruptcy (CBS News)
I-P-No: IPO Market Faces Worst Year in Two Decades. ‘Really Hard Pill to Swallow.’ (The Wall Street Journal)
Bad News Coming: 72% of economists expect a US recession by the middle of next year (CNN)
Fall on Your Ford: Ford to eliminate 3,000 jobs in an effort to cut costs (CNBC)
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