Wednesday’s Headlines: Airbnb Gives Travel a Boost
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Zillow (Z) +7.1%
Eventbrite (EB) +4.7%
GoPro (GPRO) +4.5%
Etsy (ETSY) +3.6%
Teladoc (TDOC) +3.2%
Moving Down ⬇️
Chegg (CHGG) -30.3%
2U (TWOU) -13.5%
nCino (NCNO) -5.9%
Farfetch (FTCH) -5.3%
Duolingo (DUOL) -5.2%
1. Airbnb (ABNB) reported its first-quarter 2022 earnings last night and — dare I say it — travel seems to be truly rebounding. Following a rough couple of years mired in rolling COVID-related lockdowns, the online rental platform ended the quarter posting a loss per share of only $0.03 compared to an expected loss of $0.29, on revenue of $1.51 billion versus an anticipated $1.45 billion. That revenue figure represents a 70% year-over-year increase, despite pandemic concerns still looming and a marked loss of business in Russia as a result of the ongoing war. A global shift towards remote work has also benefitted the company, with long-term stays accounting for its fastest-growing segment — more than doubling since Q1 2019. As CEO Brian Chesky put it, “Airbnb is stronger than ever before.” Read more on the story here.
2. Starbucks (SBUX) posted a relatively solid fiscal Q2 earnings report yesterday, but the suspension of its fiscal 2022 outlook is what’s weighing heaviest on the minds of its shareholders this morning. The coffee giant posted adjusted earnings per share (EPS) of $0.59 — meeting analyst expectations — on revenue of $7.64 billion versus estimates of $7.60 billion. Internationally, the company was met with some notable issues this quarter, with strict lockdowns in China particularly hampering the firm’s potential earnings. China is Starbucks’ second-largest market, and currently close to a third of its stores are either temporarily closed or only accepting mobile/delivery orders. Couple this slowdown with a concerted union push in the US and it becomes clear to see why the company suspended its 2022 outlook. Find out more here.
3. Match Group (MTCH), the parent company of dating apps such as Tinder and Hinge, has named a new CEO in conjunction with its first-quarter earnings report. Bernard Kim, the president of gaming company Zynga, will assume the role as of May 31. Current CEO, Shar Dubey, will step down but remain as a director on the board, “allowing her to focus on product strategy while playing an integral role in the transition.” Kim will have his work cut out for him, with Match Group currently down over 40% year-to-date. It’s not all bad news for the company though, as it managed to beat expectations for both earnings and revenue this quarter. Adjusted EPS of $0.74 on revenue of $798.6 million beat out analyst estimates of $0.66 and $794.6 million respectively. Read more on Match’s earnings right here.
Get this week’s full earnings calendar here.