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Stocks continued to consolidate ahead of tomorrow’s interest rate decision from Papa Powell and the Federal Reserve โ€” let’s see what you missed. ๐Ÿ‘€

Today’s issue includes an earnings recap, global news you can use, and Uber’s surprise. ๐Ÿ“ฐ

Check out today’s heat map:

5 of 11 sectors closed green. Energy (+0.97%) led, and consumer discretionary (-1.01%) lagged. ๐ŸŸข

Today was a big day for economic and international news, so we’ll cover that in our third article below. For now, let’s cover some individual stocks. ๐Ÿ‘‡

Abiomed soared 50% after J&J confirmed it would buy the heart pump maker for $16.6 billion. ๐Ÿ’“

Fox Corporation rallied 5% after an uptick in political ads led to a strong jump in revenue and Fox Nation subscriptions. ๐Ÿ“บ

United Airlines’ problems will continue as its pilots’ labor union rejected the proposed contract deal, with over 94% of those who participated voting against the agreement. โŒ

Toyota shares hit their brakes after the company’s profit missed estimates by a wide margin and lowered its fiscal year production target. ๐Ÿš—

Oil companies continue to pump out record profits. The world’s second-largest company, Saudi Aramco, reported a $42.4 billion profit. Meanwhile, BP shares were down marginally after reporting an $8.2 billion profit and announcing a $2.5 billion share buyback. The industry’s windfall continues to attract attention from governments across the globe who are fighting an inflation crisis. ๐Ÿ›ข๏ธ

In crypto news, Coinbase joined a trade group and other groups supporting Ripple against the SEC. โ‚ฟ

Other symbols active on the streams included: $RUM (+9.64%), $MMTLP (+3.80%), $META (+2.19%), $MULN (-16.67%), $DVN (-2.73%), $ARAV (+30.53%), $BCRX (-11.16%), and $ENVX (-4.66%). ๐Ÿ”ฅ

Here are the closing prices:ย 

S&P 500 3,856 -0.41%
Nasdaq 10,891 -0.89%
Russell 2000 1,851 +0.25%
Dow Jones 32,653 -0.24%

Uber Beats Its Eats Featured Image

Uber just delivered investors and traders a nice present start to November: a big +13% pre-market open on some positive earning data.ย 

Here are some highlights from Uberโ€™s Third Quarter, via CNBC:

  • Mobility (gross bookings): $13.7 billion, missed analysts’ estimates of $13.8 billion
  • Delivery (gross bookings) $13.7 billion, missed analysts’ estimates of $14.01 billion
  • Loss per share: $0.61, missing analysts’ estimates of $0.22
  • Revenue: $8.34 billion, beating analysts’ estimate of $8.12 billion
  • Adjusted EBITDA: $516 million, beating analysts’ estimates of $457.7 million

Hugenormous revenue growth YoY of 72% was a big boon, especially with the adjusted EBITDA of $516 million – a record high.ย 

Rides sharing revenue beat the Uber Eats side of the business. And fears that inflation might be hitting its customers, so far, havenโ€™t deterred people from seeking rides or food delivery.ย 

Interestingly, the rise in the cost of living has, um, driven more people to become Uber drivers. Uber reports that the number of their drivers returned to 2019 levels.ย 

Addressing questions and concerns that demands for rides and food delivery may cool off due to inflation, CEO Khosrowhahi said, โ€œIt continues to be stable, et cetera, a little bit this quarter. And I think for Q4, we expect it to be stable to up a little bit as well. At this point, we’re not seeing weakness. We’re definitely watching out for it.โ€

Investors thus far appear to be shaking off the net lossย due to falling values in Uberโ€™s Didi Global Inc (China), Aurora Innovation, and Grab Holdings (Southeast Asia) stakes.ย 

Q4 Outlook

  • Gross Bookings to grow from 23% to 27%.ย 
  • Adjusted EBITDA of $600 million to $630 million

At the time of writing, shares of $UBER remain positive for the day, though slightly off its high of $30.99 (+16.67%). With the NASDAQ down over 1%, weโ€™ll have to see how Uber holds up before tomorrow’s interest rate decision.


Global News You Can Use Featured Image

A lot happened today, so let’s try to recap all the headlines. ๐Ÿ“ฐ

First off, global tensions continue to rise as Russia claims the U.K. navy blew up the Nord Stream pipeline, which furthered its own energy crisis. However, London denies its involvement, and Russia did not provide any concrete evidence for its claim that a leading NATO member sabotaged its infrastructure.

Meanwhile, the U.S. is on high alert after Saudi Arabia received multiple threats from Iran. The Saudi government shared intelligence with the U.S. that warned of an imminent attack from Iran on various targets in its country. โš ๏ธ

Tensions remain high in Brazil as the soon-to-be former president, Bolsonaro, avoids conceding to Lula in his first public remarks.

In U.S. economic news, all eyes are on tomorrow’s Fed decision and Friday’s jobs report. Ahead of those events, today’s JOLTs job openings number jumped unexpectedly, rising to 10.72 million in September. That means the labor market remains very tight, with 1.9 job openings for every available worker. Meanwhile, U.S. and global manufacturing measures both fell in October, signaling a further weakening of business activity.

Lastly, the Federal Communications Commission (FCC) believes the Council on Foreign Investment in the U.S. (CFIUS) should ban TikTok. The comment caused an initial jump in TikTok competitors like Meta and Snapchat, but those ultimately faded throughout the day. ๐Ÿšซ

Other than that, we’re all waiting for tomorrow’s Federal Reserve interest rate decision, where most expect another 75 bp hike.


Earnings Recap – 11/01/22 Featured Image

Some big names were on the move today after earnings, so let’s get into them.

Advanced Micro Devices missed earnings estimates by $0.01 per share, and its revenues of $5.57 billion were just shy of the $5.62 billion expected. The chipmaker grew revenues 29% YoY, with net income falling 93%, primarily due to its February acquisition of Xilinx.ย 

Looking ahead, the company cut its full-year revenue guidance again and reduced its adjusted gross margin outlook from 54% to 52%.

Despite it missing already lowered guidance and reducing its forward outlook again, $AMD shares are up about 4% after hours. Maybe enough of the bad news was priced in. Or maybe sellers just need some time to catch their breath. Only time will tell… ๐Ÿคท

Sofi Technologies was up as much as 20% after topping revenue estimates but faded throughout the day to close up 5%.

And finally, Airbnb beat earnings and revenue estimates but is dropping because of weak guidance.

The company’s adjusted earnings per share of $1.79 beat the $1.53 expected. Revenues of $2.88 billion were above the $2.83 expected. However, its nights and experiences booked number was slightly below estimates of 99.9 million at 99.7 million.

While it said Q3 was its most profitable quarter ever, it now expects Q4 revenue between $1.8 and $1.88 billion, slightly below analyst estimates of $1.86 million. The company noted several macro headwinds, including the strong U.S. dollar, inflationary pressures, and a consumer slowdown.

Shares of $ABNB are down about 7% after hours. ๐Ÿ”ป


Bullets

Bullets From The Day:

๐Ÿ˜๏ธ Investment giant KKR sets a real estate record. Private equity’s love affair with rental real estate continues, this time with the investment giant KKR smashing a multifamily sales price record in Philadelphia after purchasing the Presidential City complex for $357 million. The housing complex includes four 12-story buildings named after the first four U.S. presidents and was renovated in ’17. The Real Deal has more.

๐Ÿ“ฑ Another new EU law targets Apple’s grip on consumers. The European Union continues to target big tech companies who they say use anticompetitive tactics to maintain their market share. Under the new Digital Markets Act (DMA), tech giants like Apple and Google could be forced to open up their services platforms to other firms and developers. That means that the monopoly they currently have on messaging and app buying could soon come to an end. More from BBC.

๐ŸŽถ Amazon Prime boosts its song and podcast catalog. The company continues to bolster its benefits to Prime members as competitors like Walmart+ remain hot on their tail. Today, it added a full music catalog of 100 million songs, up from just 2 million songs, and gave its Amazon music app a revamp, which will help surface podcasts its users may enjoy. Its promise of an ad-free podcast experience could help make it an attractive alternative to other music streaming competitors like Spotify or Apple Music. TechCrunch has more.

๐Ÿ’ฐ Upstart lays off 7% of staff amid weak loan demand. The once high-flying growth stock has suffered heavy losses in the stock market over the last year. It continues to streamline its business after shrinking from a $40 billion valuation to below $2 billion. The cloud-based AI lending platform noted ongoing economic challenges and a reduction in loan volumes as the primary reason for the layoffs. Weak consumer confidence and soaring interest rates make it difficult to see how much improvement it’ll see in the coming quarters. More from Tech Crunch.

๐Ÿšซ Judge blocks merger of book giants. A federal judge put the kibosh on the $2.18 billion merger between Penguin Random House and Paramount Global’s Simon & Schuster, two of the world’s largest book publishers. The court noted the proposed merger could result in substantially less competition for U.S. publishing rights, and ultimately reduce writers’ pay and consumers’ choices. Yahoo Finance has more.