Thursday’s Headlines: Disney Left Looking Goofy
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Tesla Motors (TSLA) +4.3%
Mastercard (MA) +3.9%
iRobot (IRBT) +1.8%
Baozun (BZUN) +1.3%
Moving Down ⬇️
Upstart Holdings (UPST) -18.2%
Nautilus (NLS) -10.4%
ShotSpotter (SSTI) -9.4%
Redfin (RDFN) -8.7%
The Trade Desk (TTD) -8.7%
1. Disney (DIS) reported disappointing earnings last night with the company missing estimates across the board. The media giant reported adjusted earnings per share (EPS) of $0.37 against analyst estimates of $0.51, on revenue of $18.53 billion against an expected $18.79 billion. This earnings miss has prompted the stock to drop by over 8% pre-market at the time of writing. Disney+ subscribers also missed estimates, hitting 118.1 million instead of a forecasted 125.4 million. Despite its theme parks showing a rebound, with revenue growing 26%, Disney was left with an operating loss of $65 million for its content sales and licensing division. CFO Christine McCarthy explained that “while theaters have generally reopened, we are still experiencing a prolonged and gradual pace of recovery in this business.” Read more here.
2. Dating app Bumble (BMBL) posted a mixed earnings report yesterday that saw shares sink 6%. Despite beating on revenue, reporting a total of $200.5 million against analyst estimates of $198.8 million, the company experienced its first quarterly decline in user growth since it began trading publicly in February. Total paying users dropped by 2% to 2.9 million in what investors hope doesn’t become a worrying trend. CFO Anu Subramanian was quick to point out the company’s raised outlook for revenue and earnings for Q4, announcing that, “we believe we are well-positioned for the fourth quarter, given our ongoing product and market leadership combined with the operating leverage in our cost structure.” Read more here.
3. Electric vehicle (EV) manufacturer Rivian finally debuted on Wall Street yesterday in one of the most hotly anticipated IPOs of recent times. The stock price ballooned by 53% during trading before closing at $100.73, almost a 30% increase from the initial offering. As a result, Rivian has a market value of over $100 billion, higher than historic auto companies such as General Motors and Ford. The $12 billion cash injection Rivian has received will allow it to aggressively invest in production as it aims to hit a target of building one million vehicles per year by 2030. As CEO R.J. Scaringe put it, “we better be growing at least that quick; certainly before the end of the decade is how we think about it.” Read more here.
There is one company on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.