Thursday’s Headlines: Is Disney’s Magic Fading?
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
TrueCar (TRUE) +6.3%
Planet Fitness (PLNT) +3.3%
ShotSpotter (SSTI) +3.2%
Trip.com Group (TCOM) +1.9%
Moving Down ⬇️
Upstart Holdings (UPST) -16.7%
Square (SQ) -15.6%
Farfetch (FTCH) -15.0%
Redfin (RDFN) -15.0%
MercadoLibre (MELI) -12.2%
1. Shares in Disney (DIS) dipped yesterday and have continued to trend downward pre-market this morning following an underwhelming earnings report. The company reported adjusted earnings per share of $1.08 against an expected $1.19, and also failed to beat on revenue following a $1 billion early termination charge for films and TV shows. A COVID bounce-back seems to be in full flow, with its parks, experiences and products segment more than doubling its revenue for the quarter. However, it must be noted that the company’s parks in Asia are still subject to lockdown-induced closures which could hurt Disney’s bottom line. In some good news for the House of Mouse, it outpaced expectations for Disney+ subscribers, totaling 137.7 million against an anticipated 135 million. This comes just weeks after Netflix’s (NFLX) damning subscriber decline and adds weight to Disney CEO Bob Chapek’s claims that “we are in a league of our own.” Read more on the story here.
2. Airbnb (ABNB) announced a host of radical product updates yesterday in what CEO Brian Chesky dubbed “the biggest change to Airbnb in a decade.” The changes were revealed during the company’s virtual Summer event. The rental platform has added the ability to search by various categories and styles of property in an attempt to “alleviate over-tourism by redistributing travel.” It also expanded its AirCover travel protection service to now cover guests instead of just hosts, as was previously the case. Finally, Airbnb has introduced split stays, whereby users can split their trips between two homes to allow for longer and more varied trips to appeal to the new glut of remote workers. All of this comes just a week after the company’s stellar earnings report. As travel continues to recover, this willingness to innovate and change an already well-liked product could propel Airbnb stock to heights of old. Find out more here.
3. After a reign of almost two years as the world’s most valuable company, Apple (AAPL) has finally been relieved of its crown. The Big Tech firm slid by just over 5% yesterday, paving the way for oil giant Saudi Aramco to ascend to the throne. Aramco has soared by over 27% this year so far as geopolitical uncertainty and widespread supply chain issues have driven energy stocks higher and higher. Conversely, those same supply chain issues — coupled with inflationary concerns and general market uncertainty — have seen investors pivot away from tech companies in droves. Apple is down almost 20% year-to-date (YTD) despite a relatively positive earnings call late last month. While this potentially temporary downgrade to the world’s second most valuable company in no way matters in the grand scheme of things, it is very much indicative of wider market sentiments right now, with even typical anchor stocks like Apple getting punished. Read more here.
Get this week’s full earnings calendar here.