Thursday's Headlines: Facebook Plummets Over 20%

Thursday's Headlines: Facebook Plummets Over 20%

Morning folks! Did anyone get yesterday’s anagram puzzle? 

The answer was Stock Split

Pay attention to today’s headlines, as there’s a clue hidden in there to help you with today’s puzzle.

See if you can figure out today’s anagram, and let us know on Twitter @MyWallStHQ if you think you’ve got it.

Learn Scaling

We’ll reveal the answer in tomorrow’s headlines. 

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Google (GOOG) +7.4%

Match Group (MTCH) +5.3%

IDEXX Laboratories (IDXX) +4.0%

Take-Two Interactive (TTWO) +3.0%

Costco (COST) +2.7%

Moving Down ⬇️

PayPal (PYPL) -24.6%

StoneCo (STNE) -12.4%

Square (SQ) -10.6%

Shopify (SHOP) -10.0%

Upstart Holdings (UPST) -9.8%

1. Meta (FB), formerly Facebook, saw its shares slump by over 20% yesterday in after-market trading following an underwhelming fourth-quarter earnings report. The company reported earnings per share (EPS) of $3.67 against analyst estimates of $3.84, on revenue of $33.67 billion versus a predicted $33.4 billion. These mixed results might not seem like too much cause for concern, but the real issues arose when the firm revealed its global daily active users (DAUs). For the first time in the company’s history, DAUs fell from the previous quarter from 1.93 billion to 1.929 billion. Competition from other brands seems to be driving the decline as companies like TikTok have made significant inroads on Meta’s user base. Read more here.

2. Spotify (SPOT) also slumped yesterday following its earnings call, with the company sliding by as much as 18% at one point in extended trading. The company actually posted a solid earnings beat, announcing a loss of only $0.23 per share versus an expected $0.44, on revenue of $3.03 billion against a predicted $2.98 billion. Unfortunately, where things began to turn sour was when the company announced its guidance for the upcoming quarter. A low forecast for monthly active users (MAUs) of 418 million against an estimated 422 million for the quarter saw investors react unfavorably. With Spotify doing everything it can to put out Joe Rogan-related fires in its call, this bleaker-than-expected outlook seemed to be enough to push many investors to sell. Click here to see the full earnings report.

3. Not content to leave its social media and streaming compatriots to suffer alone, PayPal (PYPL) closed its worst-ever day of trading, falling over 24%. Mixed earnings and weak guidance for the upcoming year sent investors into a selling frenzy that brought a lot of the consumer and finance space down with it. Square (SQ) and StoneCo (STNE), companies offering similar payment solutions to PayPal, both saw losses of over 10% despite no real news emerging from either company. PayPal’s poor outlook was attributed to common issues such as supply-chain woes and consumer reactions to rising inflation. CEO John Rainey labeled its guidance as a “measured approach” that is focusing on “sustainable growth and driving engagement.” Investors will undoubtedly remain cautious until they see the company rebound in some way. Find out more here.

Some more earnings from last night:

Align Technology (ALGN)
Align Technology posted a solid earnings beat yesterday with adjusted EPS of $2.83 against an expected $2.66, on revenue of $1.03 billion versus a predicted $1.02 billion. The ‘Invisalign’ manufacturer is down almost 22% year-to-date (YTD) so will be hoping this good news can eat into some of those losses. See Align's earnings here.

Cognizant Technologies (CTSH)
Cognizant Technologies beat analyst estimates by posting EPS of $1.10 against the analyst consensus of $1.04. The company also beat on revenue, posting $4.78 billion against an expected $4.18 billion. The stock has outperformed the S&P 500 Index since the beginning of the year, so will be hoping for continued success in light of its earnings beat. Read more here.

IDEXX Laboratories (IDXX)
Idexx Laboratories beat Wall Street estimates for earnings yesterday, announcing EPS of $1.89 against a prediction of $1.67. The animal healthcare company also beat on revenue, with its result of $801.1 million outpacing the estimate of $780.3 million. The company enjoyed a 4% rise in its stock price following its positive earnings call, but still remains down over 15% YTD. See the full report here.

The New York Times (NYT)
The famous publisher announced that it had achieved its goal of reaching 10 million subscribers almost three years ahead of schedule. The company had hoped to reach the milestone by 2025, but its recent purchase of sports-media platform The Athletic saw it push past the barrier. The goal has now been reset at 15 million by 2027. The company also reported $2.1 billion in revenue for the year, making it the company’s first year over the $2 billion mark. Click here to read the NYT's press release.

There are seven companies on the MyWallSt shortlist that will report earnings today:

Amazon (AMZN) (BILL)
Activision Blizzard (ATVI)
Ford Motor Company (F)
GoPro (GPRO)
Hain Celestial (HAIN)
Pinterest (PINS)

Get this week’s full earnings calendar here.

Pádraig BolgerPádraig Bolger