After another heavy week of earnings, everyone is talking about how much money YouTube makes, while Disney fails to enlighten us on Disney+ guidance.
Feb. 7, 2020
#YouTubeTransparency
For the first time ever, Google’s parent company Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG)revealed annual revenues of $15 billion for its YouTube subsidiary, but we still don’t know the cost of these…
Why reveal this now?
We have all used YouTube at some point, some of us more than others — it’s half of what I do in this office, but don’t tell my boss. However, none of us knew how much money it was making, until now! Google says YouTube generated $15 billion last year and contributed roughly 10% of total company revenue. However, they’re still coy on just how much it costs to run the streaming site, so we don’t know what the profit margins are. Some are calling the decision to announce YouTube earnings a distraction from the fact that Google missed on revenue with $37.57 billion in Q4 versus the $38.38 expected. In Google’s defense, YouTube might be the greatest distraction on earth. If it didn’t exist, this piece would have been written days ago, and not at the 11th hour on a Friday, as my mind wanders towards my first beer of the weekend. Ok, now I have two reasons to be distracted…
Bet you didn’t know
As of November 2019, a monstrous 1 billion hours of video were being watched on YouTube every day. I only accounted for half of that.
#FordVersusTesla
Ford (NYSE: F) disappointed investors with a fourth-quarter loss this week that essentially wiped out its profit for 2019, while Tesla (NASDAQ: TSLA) keeps on rising — despite some hiccups.
What’s the deal?
Ford and Tesla are having two very different weeks. Ford reported a $1.7 billion loss last quarter, mostly because of a previously-disclosed $2.2 billion charge related to retiree benefits. The loss left the company with only $84 million in profit for the year, a dramatic drop from its $3.7 billion profit in 2018 and a $7.8 billion net income in 2017. Much of this drop is tied with the company’s ongoing $11 billion restructuring plan which involves an overhaul of its entire portfolio. Meanwhile, arch-rival Tesla is continuing to astonish the market, jumping 36% in the space of two days this week, and then immediately falling 17% on Wednesday, followed by a cool 2% rise on Thursday. You can credit much of the increase to the seemingly boundless enthusiasm of Tesla’s supporters, for whom Elon Musk, the chief executive, is a hero. But the haters appear to be playing a role, too: After betting that the company would fail, many seem to be cutting their losses — and that is actually pushing shares higher. Tesla stock is a wacky roller coaster right now, so just strap in and enjoy the show.
Bet you didn’t know
Ford is actually the fifth-largest family-owned company in the world after Walmart, Mars, Comcast, and News Corporation.
#DisneyPlus
Disney (NYSE: DIS) revealed in its fiscal Q1 2020 earnings on Tuesday that its new streaming service, Disney+, grew to 26.5 million subscribers during the quarter.
But Disney has a problem…
Disney’s march towards world domination continues and Disney+ is its latest warhead. The ‘House of Mouse’ seems so confident in its ’60-90 million subscribers by 2024′ guidance that it did not feel the need to update 2020 estimates. The company did beat expectations on its top and bottom lines too, which may prove invaluable considering it expects the coronavirus to deal its theme parks a $175 million blow this quarter. Disney had already disclosed that its Hong Kong park had been underperforming due to protests in the region, and with Shanghai now also closed due to virus concerns, the losses will continue to mount. Domestically, the company doesn’t expect traffic at its U.S.-based parks to be impacted by lower visitation of guests from Asia. Revenue at Disney’s Parks, Experience and Products segment rose 8% from the prior year to $7.4 billion, while operating income increased 9% to $2.3 billion.
Bet you didn’t know
Disney’s latest park, ‘Star Wars: Galaxy’s Edge’, spans more than 14 acres, making it the largest single-themed land expansion in Disney Parks history.
#MoreEarnings
Earnings season continues here at MyWallSt as companies of all sizes round up the last quarter of 2019.
So how did they get on?
The Good ?
Activision-Blizzard
Video game maker Activision (NASDAQ: ATVI) beat expectations with EPS of $1.23 on revenue of $2.71 billion, thanks largely in part to the release of its blockbuster shooters ‘Call Of Duty: Modern Warfare’ last quarter.
Chipotle Mexican Grill
Chipotle Mexican Grill (NYSE: CMG) shares fell more than 4% on Wednesday as increased costs hit its bottom line, but impressive same-store sales of 13.4% show that the comeback is still on for the restaurant chain
iRobot
iRobot (NASDAQ: IRBT) stock rose after announcing earnings on Wednesday, coming out with quarterly earnings of $0.70 per share on revenue of $426.78, showing growth across the board amid fears that the coronavirus will affect production.
Twitter (NYSE: TWTR) saw its stock rise 15% after reporting 152 million Monetizable Daily Active Users (mDAUs) versus 147.5 million expected, while revenue surpassed $1 billion for the first time in a quarter.
The (Not So) Bad ?
Match Group
Tinder-owner Match Group (NASDAQ: MTCH) reported $547 million, up from $457.3 million a year ago but shy of expectations of $553 million, while earnings outlook fell short of expectations, sending the stock down 9% on Wednesday, a week after CEO Mindy Ginsberg resigned.
Paycom
Paycom (NYSE: PAYC) topped estimates on Wednesday, but its guidance was mixed. EPS came in at $0.86, up 41% from a year earlier, on top of revenue, which rose 29%, to $193.4 million, as the company surpassed consensus EPS for the fourth time in four quarters.
Zendesk
Customer service software provider Zendesk (NYSE: ZEN) fell more than 4% after hours despite beating on revenue with $229.9 million, as the company continues to outperform the market in 2020.
The Ugly ?
GoPro
Action-camera maker GoPro’s (NASDAQ: GPRO) stock fell nearly 15% following an earnings miss with EPS of $0.65 on revenue of $112.1 million. Despite the miss, the company’s new Hero 8 series drove sales to the company’s second-most profitable quarter ever.
Take-Two Interactive
Another videogame maker to report earnings on Thursday, Take-Two (NASDAQ: TTWO) missed expectations with EPS of $1.63 on net bookings of $888 million, as the company’s CEO announced that Sam Houser will remain the leader of critical Rockstar Games studio, following the departure of co-founder and brother Dan Houser last week.
Twilio
Software maker Twilio (NYSE: TWLO) fell more than 3% after reporting a wider fourth-quarter net loss of $0.66 a share on revenue of $331 million, with the company reporting wider guidance than expected despite its CEO’s claims they are ‘just scratching the surface’ of the addressable market.
Wynn
The house doesn’t always Wynn it seems — excuse the pun — as casino giant Wynn Resorts (NASDAQ: WYNN) fell 3% after hours after reporting that earnings fell 11.3%, without giving any update on the ongoing effects of the coronavirus.
Bet you didn’t know
Analysts estimate that 87% of all action-camera units sold in the U.S. in 2019 were GoPro’s.
#AndFinally
So far this year we’ve had tragedies, a deadly virus, and potential world war — but none of this compares to the harrowing reports of merciless bullying inflicted upon those unfortunate few named ‘Alexa’. According to reports, people named Alexa are being teased and bullied mercilessly and Amazon (NASDAQ: AMZN) won’t even acknowledge their cries for help. I am shocked that a company known for its fair treatment of workers and eco-friendliness is ignoring such clear cries for help. This should be priority number one. The problem is that Amazon chose a popular human name for its artificial intelligence software bot and now the name ‘Alexa’ has become synonymous with ‘servant’. One mother has been trying to raise awareness with a group called ‘Alexa Is A Human’ and has reached out to Amazon with public letters and directly. But so far, their calls for help have fallen on deaf ears.
What can parents do against such adversity?
One enraged parent “made the financial sacrifice,” to place their daughter in a private school where teasing is not allowed. Cue the world’s smallest violin playing in the background.
Bet you didn’t know
If you ask Alexa out on a date, you will get the following response: “I like you, as a friend.” Not even an AI built to service your every need can muster the will to date you, it seems.
MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in companies mentioned above. Read our full disclosure policy here.