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Social Media Stocks – Under pressure as a group for a second straight session after Monday’s move from Snap Inc saying its revenue and adjusted EBITDA will come at the low end of its Q2 2022 guidance range due to the macroeconomic environment deteriorating further and faster than anticipated. The company issued its Q2 guidance on April 21, 2022, expecting revenue growth of 20-25% year-over-year, and adjusted EBITDA between breakeven and $50 million. The news sent peers in the digital ad space like Meta Platforms Inc, Google, Twitter and Pinterest all tumbling yesterday. Multiple negative analysts moves on the group again this morning. SNAP, FB, PINS, GOOGL, TWTR
Nordstroms Inc – Reported Q1 revenue of $3.57 billion (up 18.7% year-over-year), compared to the consensus estimate of $3.27 billion. EPS came in at ($0.06), compared to the consensus estimate of ($0.05). JWN said gross merchandise value (GMV) grew 19.6% year-over-year in Q1. Nordstrom banner revenue increased 23.5% year-over-year, and Nordstrom Rack banner revenue increased 10.3% year-over-year. The company also provided its full 2022-year outlook, expecting EPS in the range of $3.20-$3.50, compared to the consensus estimate of $3.12. Revenue growth, including retail sales and credit card revenues, is expected to be 6-8%. The Board of directors also authorized a new $500 million share repurchase program.
BIG Tech – Back on watch after a choppy start to the week, According to Nikkei reports Apple has told its suppliers to speed up iPhone development after China’s strict COVID-19 lockdowns hampered schedule for at least one of the new phones. Lockdowns due to China’s zero-COVID policy led iPhone assembler Pegatron Corp to suspend operations at its Shanghai and Kunshan plants earlier this year. In the worst-case scenario, Apple expects the manufacturing schedule and initial production volumes of the new phones to be hurt, the Nikkei business daily reported. AAPL, MSFT, AMZN, AMD, NVDA
Zoom Video Communications – Back on watch after Tuesday’s choppy session, Cathie Woods’ flagship Ark Innovation fund bought 19,015 shares of video-conferencing co on Tuesday, lifting it to top spot on the fund by weightage. ARKK has been consistently buying ZM shares since Dec. 30, according to cathiesark.com, which compiles daily ARK trading data. CITIGroup and Guggenheim both out with PT cuts on the stock this morning.
Dick’s Sporting Goods – Sharply lower after it forecast 2022 adjusted EPS of $9.15 to $11.70, compared with a prior range of $11.70 to $13.10, citing “the impact of evolving macroeconomic conditions”. Comparable sales for 2022 is expected to fall 2%-8%, versus previous forecast of flat to decline of 4%. DKS did post better-than-expected net sales for Q1. Net sales of $2.7 billion increased 41% while EPS of $2.47 and non-GAAP EPS of $2.85 both also topped estimates.
Wendy’s Co – Billionaire investor Nelson Peltz disclosed a 19.24% stake in WEN on Tuesday and is said to be considering a potential buyout of the company. Peltz’ hedge fund Trian Fund Management after hours on Tuesday said it would explore a deal on its own or with others that could include an acquisition, business combination or other transaction. WEN said its board will “carefully review any proposal submitted by Trian Partners”; Trian holds three seats on WEN board with Peltz as chairman.
Zoom Video Communications – Back on watch after Tuesday’s choppy session, Cathie Woods’ flagship Ark Innovation fund bought 19,015 shares of video-conferencing co on Tuesday, lifting it to top spot on the fund by weightage. ARKK has been consistently buying ZM shares since Dec. 30, according to cathiesark.com, which compiles daily ARK trading data. CITI Group and Guggenheim both out with PT cuts on the stock this morning.
Singing Machine Company – Recent low float uplisting from the OTC market to the NASDAQ, $4m uplisting, the karaoke and music entertainment machine maker has a 768k share free float.
Express Inc – Reported Q1 net sales that surged along with a smaller loss, Q1 EPS $(0.10) vs $0.15 estimate, sales $450.80M beat $435.74M estimates.