Monday’s Headlines: Social Media Stocks See Red

Monday’s Headlines: Social Media Stocks See Red

Here were the biggest movers in the MyWallSt shortlist on Friday:

Moving Up ⬆️

Silicon Valley Bank (SIVB) +6.8%

IMAX (IMAX) +6.3%

Vail Resorts (MTN) +2.4%

Etsy (ETSY) +2.2%

Intuit (INTU) +2.2%

Moving Down ⬇️

The Trade Desk (TTD) -8.8%

ShotSpotter (SSTI) -8.7%

Nautilus (NLS) -7.7%

Gentex (GNTX) -6.8%

DraftKings (DKNG) -5.7%

1. For once, Facebook (FB) saw its stock price plummet for something that was out of its control. Alongside Twitter (TWTR), Pinterest (PINS), and other social media stocks, Facebook dropped more than 5% off the back of Snap Inc’s (SNAP), frankly, alarming earnings call last Thursday night. Snap revealed that Apple’s (AAPL) recent iOS privacy changes had a severe impact on its ad revenue, which has caused major concern amongst investors of other ad-reliant businesses in the build-up to their respective Q3 earnings reports. Perhaps Facebook will present a solution to these problems, along with a hint as to its rumored new name, at its earnings call tonight. Read more here

2. While Chinese EV rival Xpeng is touting a ‘flying car’ for release in 2024, Tesla’s (TSLA) share price is back to hitting all-time highs. Following a crushing earnings beat on Wednesday that saw the company report record revenue of $13.76 billion, Tesla’s roared to a closing price of $909.68 per share — a 61.6% improvement on its year-to-date (YTD) lows from March. Tesla’s strong earnings results stemmed from improved gross margins of 30.5% on its automotive business and 26.6% overall. Investors have shown a lot of excitement for the company’s improving output and upcoming Texas and Berlin gigafactories. Read more here

3. It was a quarter to forget for Gentex (GNTX) investors after the automotive tech supplier missed analyst expectations for revenue and earnings. Gentex came out with quarterly earnings of $0.32 per share versus estimates of $0.36 per share, compared to $0.48 per share a year ago. Revenue fell to $399.6 million from $474.64 million and missed expectations by 5.6%. Marking yet another earnings miss, the company was quick to point at supply chain constraints across the auto industry as the reason for this dramatic year-over-year drop. “Despite these challenges, our team has done a remarkable job of securing components as well as providing unique solutions for our customers,” said President and CEO, Steve Downing. Read the official release here.  

Investor note: Following rumors last week that PayPal (PYPL) was interested in acquiring Pinterest (PINS), the former has released a statement to refute the claims, remarking that it is not interested in such a deal. See the release here

There is 1 company on the MyWallSt shortlist that will report earnings today:

Facebook (FB)

Get this week’s full earnings calendar here.