Walt Disney, PayPal, Airbnb, and Li Auto: Stock Market Weekly Digest (8-12 May)
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PayPal Holdings, Airbnb, Li Auto, and Walt Disney were in the spotlight this week. Let's find out how their stocks reacted to the latest developments.
PayPal report: increased profit did not save the shares from declining
PayPal Holdings Inc. which owns the largest electronic payment system PayPal shared its results for the first quarter of 2023 on 8 May. Over the period of January through March, revenue increased 8.59% from the same period in 2022, reaching $7.04 billion. Net profit rose 56.19% to $0.80 billion or $0.70 per share. Total payments amounted to $354.51 billion, 9.76% higher than the Q2 2022 result.
PayPal Holdings Inc. forecasts that Q2 2023 revenue will grow 6.5-7%, EPS to be $0.81-0.83, and full-year earnings to reach $3.42 per share.
At the same time, due to geopolitical and macroeconomic factors, the management reduced its full-year operating margin forecast from 125 to 100 basis points. This had a negative impact on PayPal Holdings Inc. (NASDAQ: PYPL) stock, which lost 16.08% over Tuesday and Wednesday, hitting $63.38.
Airbnb report: forecast caused a decline in the quotes
Airbnb Inc. which owns the short-term rental service with the same name presented its report for Q1 2023 on Tuesday 9 May. Revenue increased by 20.48%, amounting to $1.82 billion. There was also a quarterly net profit of $117 million or $0.18 per share.
Airbnb Inc. management expects a slowdown in revenue growth by 12-16% in Q2 23: the figure is expected to reach $2.35-2.45 billion. Meanwhile, the consensus forecast is $2.42 billion. Moreover, the company mentioned that the number of room nights booked by users over the April-July period is falling noticeably compared to the Q2 2022 performance.
The not-so-optimistic forecast sent the shares of Airbnb Inc. (NASDAQ: ABNB) dropping. On 10 May, the stock price lost 10.92% to $113.19 per share. The next trading session closed with a decline of 1.76% to $111.20.
Walt Disney report: Disney+ lost 4 million subscribers
Walt Disney Company (NYSE: DIS), one of the world’s largest entertainment and media conglomerates, presented its second-quarter, fiscal 2023 report on Wednesday 10 May. On the same day, the company’s shares lost 1.02%, reaching $101.14 per unit. On 11 May, the decline in the shares amounted to 8.73%, and the stock price amounted to $92.31.
Over the three months that ended on 1 April, the total revenue of the Walt Disney Company recorded a 13.33% growth to $21.82 billion. The revenue of the media segment increased by 3.08%, reaching $14.04 billion; theme parks and sales of consumer goods brought the corporation $7.78 billion, which is a 16.90% growth. Net profit skyrocketed 170.43%, reaching $1.27 billion or $0.69 per unit.
However, the number of subscribers of the Disney+ streaming service decreased by 4 million to 157.8 million, while analysts had expected it to increase to 163.5 million subscribers. It should be noted that this is the second consecutive quarter of decline. Over the January through March period, the audience sagged mainly in India and the US, with these two regions losing 4.6 million and 0.3 million subscribers, respectively.
Li Auto report: revenue doubled
Chinese electric car maker Li Auto Inc. released its Q1 2023 results on Wednesday. Revenue recorded a 96.48% growth to ¥18.79 billion ($2.74 billion), while the consensus forecast was for $2.73 billion. Net profit reached ¥0.93 billion ($134.7 million), while a year ago there was a net loss of ¥10.90 million. The number of electric cars supplied to clients increased by 65.80%, reaching 52,584 vehicles.
Li Auto Inc. forecasts revenue in Q2 will reach ¥24.22–25.86 billion, and supply volume will amount to 76-81 thousand cars. The report and forecast pushed Li Auto Inc. (NASDAQ: LI) quotes upwards, rising 18.17% to $29.27 on Wednesday through Thursday.
PayPal Holdings Inc., Airbnb Inc., Walt Disney Company, and Li Auto Inc. presented their quarterly reports this week. The shares of the first three companies reacted with a decline, while the securities of the Chinese car corporation showed an increase.