Monday's Headlines: Macroeconomic Factors Wreak Havoc
Here were the biggest movers in the MyWallSt shortlist on Friday:
Moving Up ⬆️
Peloton Interactive (PTON) +11.7%
Trip.com Group (TCOM) +2.2%
Under Armour (UAA) +1.4%
Planet Fitness (PLNT) +1.0%
Moving Down ⬇️
Netflix (NFLX) -21.8%
Shopify (SHOP) -13.9%
Upstart Holdings (UPST) -13.5%
The Trade Desk (TTD) -12.2%
Silicon Valley Bank (SIVB) -10.2%
1. It’s been an extremely turbulent few months in the markets. Last week saw major indexes such as the S&P 500 (VOO) drop to its lowest levels since October 2021. Macroeconomic factors are rampant; tensions escalating between Russia and Ukraine, the Fed meetings taking place on Tuesday and Wednesday which will disclose anticipated interest rate hikes, China’s COVID-zero mandate wreaking havoc on supply chains, and now, ballistic missiles fired at the United Arab Emirates over the weekend. While investor sentiment has moved towards the downside in these uncertain times, it’s important for investors to keep emotions in check, act rationally, and maintain a long-term view. Despite short-term volatility, great companies will prosper over the long run.
2. Airbnb (ABNB) CEO Brian Chesky says “the world is never going back to the way it was before the pandemic”. Data from the online travel marketplace is suggesting that users are opting to extend the length of their stays, with 20% of customers booking stays longer than one month, and more than half of the stays being longer than a week. This new way of living is opening up a brand new segment for the company which it looks to capitalize on — not just those who want to travel on Airbnb, but for those that want to live on Airbnb. Chesky himself is testing out this model to gain insight into how they can improve the overall customer experience by making the decision to live on Airbnb for several weeks in 2022. Read the full story here.
3. Wynn Resorts (WYNN) is seeking out a buyer for its mobile-first gambling app, Wynnbet, valuing the digital arm at $500 million. The valuation has been slashed considerably from the $3.2 billion it was proposed to be floated at via special purpose acquisition company (SPAC) last year. The decision has come amid difficulties of acquiring market share with the huge influx of competition and tax implications which leads the company to believe that customer acquisition costs don’t make sense in the current environment. CEO Matt Madox said, “competitors are spending too much to get customers. And the economics are just not something that we’re going to participate in”, suggesting there could be further strain for sports betting market participants following Wynn’s exit. Read the full story here.
Get this week’s full earnings calendar here.