Movers: DoorDash, Etsy, PayPal, Qualcomm, Shopify, Southwest Airlines

Scott Peters
03 Aug, 2023
New York City

DoorDash Inc increased 0.6% to $86.50 after the delivery company reported better-than-expected revenue in its latest quarter. 

Revenue in the second quarter increased 33% to $2.2 billion from $1.6 billion and net loss in the quarter shrank to $172 million from $263 million and diluted loss per share eased to 44 cents to 72 cents a year ago. 

Gross market volume increased 26% to $16.5 billion from $13.1 billion and total orders increased 25% to 532,000 from 426,000 a year ago. 

Qualcomm Inc plunged 9.6% to $116.80 after the semiconductor chipmaker reported weaker-than-expected revenue in the fiscal third quarter and forecasted lighter-than-expected revenue in the current quarter. 

Revenue in the fiscal third quarter ending on June 25 declined 23% to $8.5 billion from $10.9  billion and net income declined to $1.8 billion from $3.7 billion and diluted earnings per share dropped to $1.60 from $3.29 a year ago. 

Revenue for smartphone chipsets declined 25% to $5.2 billion and automotive applications rose 13% to $434 million and for connected devices dropped 25% to $1.5 billion from $1.95 billion a year ago. 

Demand for smartphones in China has not rebounded to the projected levels and the China region accounts for about 61% of Qualcomm sales. 

Qualcomm Inc said overall smartphone shipments are expected to decline in high single-digit percentage rate in 2023. 

PayPal Holdings Inc declined 8.8% to $66.70 despite the company meeting earnings expectations set by some investors. 

The payment processing company said second quarter revenue increased 7% to $7.29 billion and the company swung to net income of $1 billion from a loss of $341 million and diluted earnings per share was 92 cents compared to a loss of 29 cents a year ago. 

Total payment volume increased 11% to $376 million from $339.8 million a year ago. 

PayPal forecasted third quarter revenue to increase 8% to $7.4 billion and diluted earnings per share between 85 cents and 87 cents.  

The company anticipated stock repurchase in the current year to reach $5 billion. 

PayPal and KKR announced an exclusive multi-year relationship for European buy now, pay later and under the terms of the agreement, private credit funds and accounts managed by KKR will purchase up to €40 billion of current and future BNPL loans originated in the UK and other European countries. 

The deal is expected to close in the second half and upon closing PayPal expects to receive proceeds of $1.8 billion.

Etsy Inc declined 9.6% to $86.88 after the company reported second quarter earnings that met analysts' estimates but forecasted revenue in the third quarter below expectations. 

Consolidated revenue in the second quarter increased 7% to $629 million from $585.1 million and net income declined 15.3% to $61.9 million from $73.1 million and diluted earnings per share fell to 45 cents from 51 cents a year ago. 

The company operates three online platforms, Etsy, Reverb and Depop and reports consolidated results. 

Gross merchandise sales inched lower 0.6% to $3.01 billion from $3.02 billion and number of active sellers increased 12.3% to 8.3 million and active buyers rose 2.5% to 96.2 million. 

The company guided third quarter gross market sales between $2.95 billion and $3.1 billion and revenue between $610 million and $645 million. 

Southwest Airlines Company declined 2.3% to $32.60 and extended a 4-day loss after the regional airline reported mixed quarterly results. 

Revenue in the second quarter increased 4.6% to $7.6 billion from $6.7 billion and net income fell 10.1% to $683 million from $760 million and diluted earnings per share dropped to $1.08 from $1.20 a year ago. 

The company guided revenue per available set miles in the third quarter declined between 3% and 7% because of tough comparison with the previous year's demand driven by pent-up demand for travel after the ending of Covid restrictions.  

Shopify Inc decreased 4.7% to $59.28 after the online shopping platform for sellers reported higher sales and gross merchandise volume but quarterly loss expanded.  

Revenue in the second quarter increased 31% to $1.7 billion from $1.3 billion and net loss rose to $1.3 billion from $1.2 billion and diluted loss per share expanded to $1.02 from 95 cents a year ago. 

Gross merchandise volume rose 17% to $55 billion from a year ago and gross payment volume rose to $31.7 billion, which increased to 58% of GMV from 53% in the second quarter a year ago.