These 5 stocks have two things in common: they’re all in the MyWallSt showroom and they all announced their earnings yesterday after market close. While the sane amongst us usually go home to sleep after a long day’s work, there has been considerable after-hours trading on these companies. Let’s take a look at some of the highlights of their earnings calls and how their stock prices have been doing since.
Facebook (NASDAQ: FB) stock has dipped 7%* thanks to a good but not great earnings call. Although the social media giant topped estimates in earnings per share (EPS), revenue, and monthly active users, the consensus from investors is that the performance fell below what they had priced in and they’ve sent the stock sliding. Other factors that have led to the sell-off are an increase in expenses of 34% from the previous year and questions over future ad revenue as privacy concerns push regulators to action.
The electric vehicle manufacturer continues to add to the stress level of its numerous short-sellers as the stock jumped 10%* in after-hours trading thanks to an earnings beat and favorable guidance. EPS came in at $2.14 on revenue of $7.38 billion versus expectations of $1.72 on $7.02 billion. Perhaps what was the biggest reason for the stock to rise was Tesla’s (NASDAQ: TSLA) guidance on deliveries. The company expects to ‘comfortably exceed’ 500,000 deliveries for 2020, in spite of an influx of competitors to Tesla coming in the new year.
Microsoft (NASDAQ: MSFT) has jumped over 3%* on the back of EPS of $1.51 on sales of $36.9 billion, compared to analysts’ expectations of $1.32 a share on sales of $35.67 billion. The earnings beat can be, in part, attributed to the growth of Microsoft’s cloud business: Azure. The tech giant has its eyes set on Amazon’s (NASDAQ:AMZN) market share in the cloud industry and it looks to be working, as Azure has seen growth of 62%.
Paypal (NASDAQ:PYPL) has seen its stock dip 3%* as forecasted earnings for the current quarter fell short of analysts’ expectations. The payments processor also delivered a mixed forecast for full-year results, with EPS expected to come in at $3.39 to $3.46 on revenue of $20.8 – $21 billion, compared to expectations of $3.49 on $20.78 billion. Some positives from the report include the performance of its peer-to-peer payments app Venmo, which has grown to 52 million active users from 40 million back in April. A partnership with Visa (NYSE: V) for the Venmo credit card shows this could be a big growth driver for Paypal moving forward.
Align Technology (NASDAQ: ALGN) fell over 5% in after-hours trading in spite of the fact that it topped expectations in both EPS and revenue. This is thanks to reduced guidance for Q1. The Invisalign-maker has predicted a hit to revenue in China, its largest market, due to growing concerns surrounding the impact of the coronavirus. The projected guidance of $615 – $630 million in revenue falls well short of analysts’ expectations of $659 million for the quarter.
*All stock prices are at time of writing.
MyWallSt operates a full disclosure policy. MyWallSt staff currently hold long positions in companies mentioned above. Read our full disclosure policy here.
Financial Analyst at MyWallSt
Michael's first and favorite stock is Square, which he sees becoming a massive player in the payments industry and a leader in the war on cash.