Movers: AMD, Airbnb, Expeditors International, Match Group, PayPal, Robinhood Markets, Starbucks

Barry Adams
03 Aug, 2022
New York City

Stocks on Wall Street gained for the second day in a row and investors looked beyond the recent tensions between the U.S. and China. 

Stocks reacted to corporate earnings amid the worries of economic slowdown and steady drumbeat of Fed officials reiterating the central bank's commitment in lowering inflation to its target rate of 2%. 

The S&P 500 index added 0.7% to 4,121.72 and the Nasdaq Composite index advanced 1.5% to 12,528.20. 

Futures of crude oil increased 19 cents to $94.61 and natural gas rose a fraction to $7.70 a thermal unit. 

AMD fell 3.2% to $96.17 after the semiconductor chipmaker said revenues in the second quarter increased 70% to $6.55 billion and gross margin declined to 46% from 48% a year ago. 

Net income in the second quarter decreased 37% to $447 million from $710 million a year ago and diluted earnings per share fell 53% to 27 cents from 58 cents in the period. 

AMD reported eighth record quarterly revenues in a row. 

For the third quarter, AMD expects revenues to rise 55% from a year ago to $6.7 billion with a band of $200 million and for the full-year revenues to rise 60% to $26.3 billion with a band of $300 million. 

Airbnb Inc declined 5.5% to $109.88 after the vacation home rental booking platform said second quarter revenues jumped 58% to $2.1 billion. 

Airbnb swung to a profit of $379 million from a loss of $68 million in the year-ago quarter. 

The weaker-than-expected revenues disappointed investors despite Airbnb booking 103 million nights and experiences in the quarter. 

Expeditors International rose 0.8% to $103.05 after the company said second quarter revenues increased 28% to $4.6 billion. 

Net income rose 19% to $378 million from $316.3 million and diluted earnings per share increased 23% to $2.27 from $1.84 a year ago. 

The company guided current supply chain disruptions and logistics at ports, ocean freight shipping duration, and available air cargo capacity to improve despite the slowing down in the global economy. 

"We do not see signs that these conditions are likely to improve significantly any time soon. 

The unpredictability of COVID restrictions and lockdowns in China, as well as route restrictions and sanctions from the Ukraine conflict, continue to make global shipping a highly challenging business right now," said Bradley S. Powell, Senior Vice President and Chief Financial Officer. 

Match Group Inc plunged 20.9% to $60.67 after the online dating site operator reported weaker-than-expected revenues of $795 million in its latest quarter. 

The dating app operator also guided weaker revenues between $790 million and $800 million and adjusted earnings in the current quarter. 

The number of paid users increased 10% to 16.4 million with the average subscriber paying 3% more to $15.86. 

PayPal Holdings increased 9.6% to $98.30 after the payment processing company posted better-than-expected earnings and revised its outlook. 

PayPal said second quarter revenues increased 9% to $6.8 billion and said total payment volume on its platform increased 9% to $339.8 billion from a year ago. 

PayPal swung to a quarterly loss of $341 million or 29 cents a diluted share from $1.2 billion or $1.00 a diluted share a year ago. 

Free cash flow increased 22% to $1.3 billion from $1.1 billion a year ago. 

The company guided full-year 2022 revenues to increase 10% to $27.8 billion and total payment volume to jump 12% on spot basis to $1.4 trillion. 

PayPal estimates 2022 earnings per share to fall between $1.52 and $1.62. 

PayPal added 400,000 net new accounts in the quarter increasing its total active accounts 6% to 429 million and transaction processed increased 16% to 5.5 billion. 

Payments processed per active account increased 12% to 48.7 in the last twelve months. 

Robinhood Markets Inc increased 13% to $10.42 after the online brokerage for stocks, derivatives, and crypto-currencies said it plans to layoff 23% of its staff, after cutting its staff by 9% in April.  

Second quarter revenues declined 44% to $318 million from $565 million and net loss shrank 44% to $295 million from $502 million a year ago. 

Diluted loss per share fell to 34 cents from $2.16 a year ago. 

On a sequential basis, monthly active users declined 1.9 million to 14.0 million and assets under custody plunged 31% to $64.2 billion but average revenues per user increased to $56 from $53.

Starbucks Corporation increased 1.5% to $85.0 and the coffee chain operator said fiscal third-quarter revenues increased 9% to $8.15 billion. 

Net income fell to $912.9 million or 79 cents a share from $1.5 billion or 97 cents a share on higher wages and rising costs of raw materials. 

U.S. same store sales increased 9% driven by larger order size and 1% increase in traffic. The coffee chain also said customers are not trading down or reducing their spending.