Thursday’s Headlines: Teladoc Stock Takes a Hit
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Baozun (BZUN) +7.8%
Mastercard (MA) +5.1%
Microsoft (MSFT) +4.8%
Trip.com Group (TCOM) +4.6%
Moving Down ⬇️
Spotify (SPOT) -12.4%
Roku Inc. (ROKU) -7.6%
Netflix (NFLX) -5.0%
Upstart Holdings (UPST) -4.8%
The Trade Desk (TTD) -4.3%
1. Teladoc (TDOC) is trading down a whopping 38% in pre-market trading today following a disastrous first-quarter earnings call. The telehealth company underwhelmed on revenue, with a figure of $565.4 million falling short of an estimated $568.9 million. A huge total loss of $6.67 billion throughout the quarter was largely driven by a non-cash goodwill impairment charge, something often recorded when a held asset loses all value to the company. Teladoc also revised its full-year outlook to reflect “dynamics we are currently experiencing in the direct-to-consumer mental health and chronic condition markets,” according to CEO Jason Gorevic. You can read more on the story here.
2. Not wanting to be left out, Spotify (SPOT) stock also dropped yesterday following its Q1 2022 earnings report. The streaming giant tumbled by over 12% yesterday despite beating analyst estimates on both the top and bottom lines. The company posted earnings per share (EPS) of €0.21 ($0.22) against an expected loss of €0.24 ($0.25), on revenue of €2.66 billion ($2.8 billion) versus an anticipated €2.62 billion ($2.76 billion). Paid subscribers underwhelmed, despite the 182 million reported signifying a 15% year-over-year (YoY) increase, but this miss is likely due to the company’s withdrawal from the Russian market. Monthly active users (MAUs) actually grew by 19% YoY to 422 million, exceeding Spotify’s own guidance of 400 million. As such, Spotify’s share price drop seems to be a slight overreaction to a more widespread pullback on tech stocks — particularly those centered on streaming following Netflix’s (NFLX) disastrous earnings call last week. Find out more here.
3. Finally — in some hard-to-come-by good news regarding earnings season — Meta (FB) shares have spiked by almost 18% in pre-market trading following a wholly positive earnings call yesterday. The Big Tech firm topped estimates for EPS with $2.72 beating predictions of $2.56, but failed to meet the mark on revenue, with a figure of $27.91 billion missing the analyst mark of $28.2 billion. This was the company’s first earnings call since its previous report send its stock spiraling by over 26% in February — resulting in the largest single-day loss in the history of the stock market. According to founder and CEO Mark Zuckerberg, “We made progress this quarter across a number of key company priorities and we remain confident in the long-term opportunities and growth that our product roadmap will unlock.” Despite growth slowing down from its days as an industry revelation, it appears that February's sell-off was more reactionary than a true representation of Meta's actual value. Read more here.
There are seven companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.