Coffee With Greta: Mega Meta
DJIA Futures: +151 (+0.5%)
SPX Futures: +23 (+0.6%)
NASDAQ Futures: +136 (+1.1%)
Good morning friends!
Futures are rising as traders digest the latest batch of earnings and new economic data.
Let’s get right to it!
Meta Rallies On Earnings Beat
Meta Platforms (META) shares are jumping 12.9% ahead of the open after beating Q1 expectations on the top and bottom line.
Here’s how the social media giant’s results compared to analysts’ estimates:
- EPS: $2.20 vs $2.03 expected
- Revenue: $28.65 billion vs $27.65 billion expected
- Daily Active Users: 2.04 billion vs 2.01 billion expected
- Monthly Active Users: 2.99 billion as expected
- Average Revenue per User: $9.62 vs $9.30 expected
Revenue jumped 3% year over year, the first increase in four quarters.
The company forecast Q2 revenue between $29.5 billion and $32 billion vs analysts’ estimates of $29.5 billion.
CEO Mark Zuckerberg said Meta is “becoming more efficient so we can build better products faster and put ourselves in a stronger position to deliver our long term vision.”
The Reality Labs unit – aka the Metaverse unit – brought in $339 million in revenue but logged an operating loss of $3.99 billion.
Meta said that operating loss will increase this year.
Roku Tops Q1 Estimates
Roku (ROKU) shares are slipping in premarket trade despite the company beating Q1 expectations and issuing strong guidance.
Here’s how the streaming platform’s results compared to analysts’ estimates:
- Loss per share: $1.38 vs $1.47 expected
- Revenue: $741 million vs $708.5 million expected
Roku’s active accounts jumped 17% year over year to 71.6 million.
The number of hours spent watching streaming content on its platforms rose 20% to 25.1 billion.
Roku expects $770 million in second-quarter revenue, topping analysts’ expectations for $708.5 million.
Southwest Drops After Disappointing Earnings
Southwest Airlines (LUV) shares are falling 4.7% ahead of the open after reporting a wider loss than expected in the first quarter.
Here’s how the airline’s results compared to analysts’ estimates:
- Adjusted loss per share: $0.27 vs $0.23 expected
- Revenue: $5.71 billion vs $5.73 billion expected
Southwest said it took a $325 million revenue hit during the quarter related to its holiday cancellations at the end of 2022.
The company expects revenue struggles to continue this quarter.
Southwest forecast revenue per available seat mile will be down 8% to 10% year over year in Q2 with capacity up 14%
But the airline did forecast a profit for the current quarter.
GDP Growth Slows
U.S. economic growth slowed more than expected at the beginning of 2023.
The Commerce Department’s initial estimate shows GDP rose at a 1.1% annualized pace in the first quarter.
That was slower than economists’ expectations for 2% growth and down from 2.6% in Q4.
Inflation remained high during the quarter with the PCE price index rising 4.2% vs 3.7% expected.
Consumer spending rose 3.7% and exports jumped 4.8%.
But gross private domestic investment tumbled 12.5%.
Weekly Jobless Claims Tumble
Weekly jobless claims dropped unexpectedly last week.
The Labor Department reported 230,000 Americans filed initial claims for unemployment benefits.
That was down by 16,000 and better than expectations for claims to rise to 249,000.
Continuing claims fell by 3,000 to 1.86 million in the week ending April 15.