T3 Live

Coffee With Greta: Slide Continues


DJIA Futures: -93 (-0.3%)

SPX Futures: -17 (-0.4%)

NASDAQ Futures: -85 (-0.7%)

Good morning friends!

Futures are falling with the S&P 500 on track for its worst week in 2 months.

Let’s get right to it!

PayPal Beats Q4 Expectations, CEO Retiring

PayPal (PYPL) shares are up 1% ahead of the open after beating Q4 profit expectations and announcing its CEO’s departure. 

Here’s how the digital payment company’s results compared to analysts’ estimates: 

  • Adjusted EPS: $1.24 vs $1.20 expected
  • Revenue: $7.38 billion vs $7.39 billion expected

The results were in line with PayPal’s previous outlook.

The company forecast 7.5% revenue growth in Q1 and adjusted EPS to range between $1.08 to $1.10.

It expects to book an estimated restructuring charge of $100 million in Q1 related to layoffs it announced in late January. 

PayPal also announced its CEO Dan Schulman will leave the company at the end of 2023 but will stay on as a member of the board. 

Schulman said, “I’m proud of what we have accomplished at PayPal and of the incredibly talented and committed people I work with every day. Together, we have reimagined financial services and e-commerce, and worked to improve the financial health of our customers.”

Lyft Tanks On Weak Guidance

Lyft (LYFT) shares are tumbling 31.1% in premarket trade despite reporting record Q4 revenue as the company’s outlook came in weak. 

Here’s how the rideshare giant’s Q4 results compared to analysts’ estimates: 

  • Adjusted loss per share: $0.74 vs $0.13 EPS expected
  • Revenue: $1.18 billion vs $1.15 billion expected

But the company said it only expects $975 million in Q1 revenue, falling short of analysts’ expectations for $1.09 billion. 

The CFO said, “Our Q1 guidance is the result of seasonality and lower prices, including less Prime Time.”

Expedia Tumbles After Q4 Miss

Expedia (EXPE) shares are falling 2.3% ahead of the open after missing Q4 expectations on the top and bottom line.

Here’s how the company’s results compared to analysts’ expectations:

  • Adjusted EPS: $1.26 vs $1.71 expected
  • Revenue: $2.62 billion vs $2.69 billion expected
  • Gross bookings: $20.51 billion vs $20.96 billion expected

But Expedia blamed those weak results on severe weather seen across the U.S. at the end of Q4. 

The CEO said, “While our Q4 results were negatively impacted by severe weather, demand was otherwise strong and accelerating, and has been markedly stronger since the start of the year.”

The company did not provide guidance.

Coming Up: Consumer Sentiment

The University of Michigan releases the early February reading of its consumer sentiment index at 10:00 a.m. ET today. 

That index is expected to improve to 65.1 from 64.9 at the end of January. 

The survey also includes consumers’ 1-year and 5-year inflation expectations. 

Those expectations have been a key metric both the market and the Fed are watching. 

In Case You Missed It

  • Yahoo became the latest tech company to announce mass layoffs on Thursday. The company unveiled plans to cut 20% of its staff by year-end, including 1,000 layoffs by the end of this week. The Yahoo for Business unit will be slashed in half. 
  • GlobalFoundries (GFS) shares rallied 3.5% Thursday after signing a long-term supply agreement with General Motors (GM). That agreement makes GlobalFoundries GM’s exclusive semiconductor maker. GFS will establish dedicated production capacity for GM’s suppliers at its facility in upstate New york. GM said the agreement “will help establish a strong, resilient supply of critical technology in the U.S. that will help GM meet this demand while delivering new technology and features to our customers.”

Leave a Comment: