Friday's Headlines: Amazon Steals The Show
The answer to yesterday’s anagram was Earnings Call.
See if you can unjumble today’s mouthful, and let us know on Twitter @MyWallStHQ if you think you’ve got it.
We’ll reveal the answer in Monday’s headlines.
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Axos Financial (AX) +4.3%
Hain Celestial (HAIN) +1.9%
Calavo Growers (CVGW) +1.4%
Coca-Cola (KO) +0.7%
Moving Down ⬇️
Facebook (FB) -26.4%
Spotify (SPOT) -16.8%
Square (SQ) -11.0%
Pinterest (PINS) -10.3%
Wix (WIX) -10.0%
1. Following Facebook’s abysmal earnings report this week, we expected a similar fate for Amazon (AMZN) — but we were wrong. The e-commerce giant smashed expectations with earnings per share (EPS) coming in at $5.80 versus $3.57 expected, while revenue of $137.4 billion jumped 9% year-over-year (YoY). The big — and very welcome — surprise of the evening though came in the form of a $12 billion gain from Amazon’s investment in EV maker, Rivian (RIVN). This, along with rising cloud revenue from Amazon Web Services and $9.7 billion from advertising, represents a massively diversified portfolio for a seemingly unstoppable company right now. Jeff who? Read the official report here.
2. Someone at Microsoft must have been wringing their hands with nervousness last night after its latest — $70 billion — acquisition, Activision Blizzard (ATVI), reported on an abysmal Q4. Revenue of $2.48 billion and EPS of $1.25 came in well short of what analysts expected, hindered by Activision’s flagship title, ‘Call of Duty’, experiencing declining growth as post-COVID normality resumes. However, it’s not all bad, as the Microsoft acquisition, which is slated to finalize in 2023, will offer near-limitless resources to the gaming giant, with the pair determined to conquer the metaverse together. Get the complete scoop here.
3. Forget Facebook, social media is doing just fine it seems after Pinterest (PINS) and Snap Inc. (SNAP) far surpassed Wall Street’s expectations, sending shares up as high as 28% and 60% respectively after-hours. The pinboard specialists brought in earnings of $0.49 on revenue of $847 million, while Snap managed to record its first-ever quarterly net profit thanks to its record revenue intake of $1.3 billion. Given the high levels of fear surrounding the impact of iOS 14.5 on social media stocks, these wins will go a long way in reminding shareholders that such investments are not limited to advertising revenue alone. With Q1 revenue estimates from both companies surpassing expectations, investors may be more willing to hop back on this gravy train. Read the official press release here.
More earnings from last night:
Bill.com (BILL) saw its shares skyrocket by over 25% after posting strong earnings and a positive outlook for 2022 yesterday evening. The cloud-based financial business reported 85% growth year-over-year (YoY) in subscription fees and saw gross profit grow to $122.1 million versus just $40.1 million for the year-ago quarter. The company also raised its 2022 revenue outlook to a high of $600 million, far exceeding the high end of analyst expectations at $541 million. See its earnings report here.
Ford Motor Company (F) posted a heavy earnings miss yesterday that has seen its stock price tumble. The auto manufacturer reported earnings per share (EPS) of $0.26 versus an expected $0.45, on revenue of $35.3 billion against a predicted $35.5 billion. Supply chain problems and a shortage of semiconductor chips had a severe impact on the company’s production targets. Despite these misses, CFO John Lawler stated that the company is “bullish on 2022.” Click here to find out more.
GoPro (GPRO) beat analyst expectations all around yesterday in its earnings call. The action camera manufacturer reported EPS of $0.41 against an analyst estimate of $0.39, on revenue of $391.15 million versus an expected $383.14 million. This marks the fourth quarter in a row that the company has outperformed on earnings. Despite this, GoPro is still underperforming the market significantly this year, down over 20% compared to the 6.65% of the S&P 500. Read more here.
Hain Celestial (HAIN) became yet another stock in a long line of disappointments this quarter — despite not actually doing too badly. Sure, net sales decreased 10% to $476.9 million compared to the prior year, but that’s just the supply chain, right? At least adjusted EPS of $0.36 met analyst expectations. You can read the official report here.