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- 📊 Snapchat's Earnings Vanish, Toyota & Ford Rev Up
📊 Snapchat's Earnings Vanish, Toyota & Ford Rev Up
Ticker Tea
February 07, 2024
Markets ended positive yesterday after several companies announced earnings and beat street estimates:
» Toyota said it expects net profit to climb 84% for the fiscal year ending March 2024 (previous est. +60%)
» Ford reported revenue of $46bn (vs. $40.35bn est. by Bloomberg), which is $2bn more than a year ago
» Eli Lilly reported $9.35bn (vs. $8.93bn est.) on the back of a strong launch of its new weight loss drug, Zepbound, and higher prices for its blockbuster diabetes treatment, Mounjaro
Conversely, it hasn’t been such a great week for Snap, whose stock plummeted ~30% after reporting lackluster earnings and weak guidance for 2024. Revenue came in at $1.36bn (vs. $1.38bn est.). Earlier this week, Snap announced it would layoff 10% of its workforce.
Last night, NYCB was down another 16% after hours (-70% in 2024) after Moody’s downgraded the company’s credit to junk and warned it may need further cuts. The regional banking index also lagged ($KRE -1.3%).
SPY & QQQ 2 Month Chart
▪️ Earnings Today: Disney, Uber, CVS, PayPal (calendar below)
▪️ Economic Data Today: Consumer Credit, Imports/Exports, MBA Mortgage Applications (calendar below)
▪️ Fed Speak This Week: Bostic (Mon), Mester (Tues), Kashkari (Tues), Collins (Tues), Kugler (Wed), Collins (Wed), Barkin (Wed), Bowman (Wed), Barkin x2 (Thurs), Logan (Fri)
▪️ Scheduled for today is a record-high 10-year new issue. At $42 billion, it will be the largest on record, eclipsing the $41-billion high-water mark reached in November 2020. Yesterday the 10yr dipped below 4%, signaling investor interest remains robust.
▪️ The NY Fed reported a significant increase in credit card delinquencies in 2023, with serious delinquencies soaring by 59% to 6.4%. This trend, alongside the overall rise in consumer debt to $17.5 trillion, indicates escalating financial stress, particularly among younger and lower-income households.
▪️ Citigroup ($C) strategists caution that the current bullish investor positioning in US technology stocks, particularly in the tech-heavy Nasdaq 100 ($NDX), could amplify a market downturn. This warning comes as tech stock wagers against declines have been fully cleared, creating a scenario where any selloff could lead to a broader market rout.
▪️ Adam Neumann, WeWork's ($WE) ousted co-founder, is considering a bid to regain control of the now-bankrupt co-working giant, offering a $200 million financing package to aid its restructuring. This move comes amidst WeWork's challenging bankruptcy process, where it faces lease renegotiations and creditor pressures, potentially making Neumann's offer a necessary, albeit controversial, lifeline.
▪️ Walt Disney’s ESPN ($DIS), Fox Corp. ($FOX), and Warner Bros. Discovery ($WBD) are collaborating to launch a new sports-focused streaming service by fall 2024, aiming to capture viewers transitioning from traditional TV to online platforms. The service, featuring content from ESPN, ABC, Fox, TNT, and TBS, including Monday Night Football and NCAA basketball, is a strategic move to adapt to the growing trend of sports streaming.
▪️ Snap ($SNAP), parent company of Snapchat, witnessed a dramatic 30% drop in shares following a disappointing holiday quarter revenue of $1.36 billion, missing the projected $1.38 billion. Amidst a digital advertising slump, Snap's efforts in restructuring, including a 10% workforce cut and a projected substantial EBITDA loss, reflect its ongoing struggles to adapt and compete in the evolving ad market.
Today’s earnings releases listed below. Full list for the week is here
Yesterday’s economic optimism came in lower than expected.
Today we have consumer credit, import/exports and a jumbo 10yr treasury auction scheduled for noon.
Four Fed speeches today: Kugler (10am), Collins (1030am), Barkin (1130am), Bowman (1pm)
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