Meta, Amazon, Peloton, and Carvana: Weekly Digest (30 January – 3 February)

This week, the market's focus was on such companies as Meta Platforms, Amazon, Peloton Interactive, and Carvana. See how their stocks reacted to the latest events.

Carvana stock skyrocketed 83% over the week

Since Monday, the stock price of a major online dealer of used cars in the US, Carvana Co (NYSE:CVNA), recorded 83.4% growth to $14.25. Since the beginning of the year, the stock skyrocketed a total of 200.63%.

The stock of Carvana Co – which balances on the verge of bankruptcy due to a decline in the demand in the secondary car market, a threat of recession, and rising interest rates – is very popular among market participants who prefer playing short. Hence, this skyrocketing is most likely explained by a short squeeze.

Peloton Interactive: loss decreased by 24%

The stock of Peloton Interactive Inc. (NASDAQ:PTON) which sells equipment and accessories for working out at home, along with subscriptions to online training courses, has been growing for the last three trading sessions in a row to a total of 35.84%, reaching $16.98.

On Wednesday 1 February, Peloton Interactive Inc. shared its Q2, financial 2023 performance. Revenue in the period of October - December 2022, compared to the statistics of October -December 2021, dropped by 30.09% to $792.7 million; net loss decreased by 23.67% to $335.4 million, and loss per share by 29.5% to $0.98.

The quarterly results demonstrate that the reforms carried out by the company have proved effective: Peloton Interactive Inc. managed to decrease its spending quite a bit as a result. To achieve this, the company carried out four series of layoffs, replaced its CEO, handed production to third-party manufacturers in Asia, shifted deliveries to third-party partners, shut down most of its offline shops, and agreed on partnerships with Dick's Sporting Goods Inc., Hilton Worldwide Holdings Inc., and Amazon.com Inc.

Meta Platforms report: Zuckerberg inspired investors

On Wednesday, reports for Q4 and the whole of 2022 were filed by Meta Platforms Inc. Quarterly revenue dropped by 4.47% to $32.17 billion, net profit by 54.77% to $4.65 billion, and EPS by 52.04% to $1.76. Yearly revenue dropped by 1.12% to $116.61 billion, net profit by 41.07% to $23.2 billion, and EPS by 37.62% to $8.59.

Meta CEO Mark Zuckerberg presented the stockholders with a plan for optimising the business, stating that the management theme for 2023 is “the year of efficiency”.

The management structure will be simplified to speed up the decision-making process; AI technology will be integrated into production to increase its speed and efficacy while decreasing expenses of the main technical departments; and content validity demonstrated to content users and ads consumers will be increased.

Zuckerberg’s statements inspired investors, and sent the quotes of Meta Platforms Inc. (NASDAQ:META) up, surging 23.28% to reach $188.77.

Amazon report: quarterly profit dropped by 98%

On Thursday 2 February, reports for Q4 and the whole of 2022 were published by Amazon.com Inc. In October - December, revenue recorded an 8.58% growth to $149.2 billion, while net profit dropped 98.06% to $278 million, and EPS 97.84% to $0.03. Analysts had forecast revenue to reach $145.7 billion and an EPS of $0.17.

Yearly revenue reached $513.98 billion, net profit $2.72 billion, and loss per share $0.27. The company expects that revenue will reach $121-126 billion in Q1 2023, while Wall Street experts expect it at $125.1 billion.

In anticipation of the reports, the stock of Amazon.com Inc. (NASDAQ:AMZN) gained 7.38%, reaching $112.91 on Thursday. However, after the disappointing statistics came out, the shares lost 5.07% post-market, falling to $107.18.

Summing up

This week, Carvana Co surprised the market with the remarkable growth of its stock price by 83%. Peloton Interactive Inc., Meta Platforms Inc., and Amazon.com Inc. shared with investors the results of the previous quarter – and their stocks demonstrated different movements.

Material is prepared by

Server A.

Server is the guru of searching for market insights. Since 2019 he writes about everything that might be useful to the investor, focusing on the stock market and its assets.