From Wall Street to Silicon Valley, these are the top stories that moved markets and had investors, business leaders, and entrepreneurs talking this week on Cheddar.
TECH TROUBLE
The stock market had another rough-and-tumble week with possible rate hikes, the Ukraine crisis, and high inflation delivering a triple whammy of uncertainty to equity investors. In line with recent weeks, once-high-flying tech stocks suffered the most. Shares of Roblox, the fast-growing gaming platform and launchpad for the metaverse, plunged nearly 30 percent after missing analysts' estimates. Shares of Roku, the streaming device maker, dropped 25 percent, and Shopify, the e-commerce giant, dropped 23 percent, both for similar reasons as Roblox. Palantir, meanwhile, fell 15 percent because it wasn't growing as fast as expected. Notably, all of these companies reported growth, just not what was promised. Investors, it seems, are raising their expectations for tech companies as a tighter market looms.
AIRBNB SOARS
Not every darling of the tech boom got drubbed. Airbnb's stock jumped 3.7 percent on the news that revenue climbed 38 percent year-over-year in the fourth quarter. In a letter to shareholders, the company highlighted how the pandemic has actually led to a boom in long-term stays, as remote work has allowed people to travel even when they're not on vacation. Pent-up demand for travel was also a factor, as COVID restrictions end across the country, which the company said will continue to drive growth in the coming year and even push it beyond pre-pandemic levels. The summer travel season already has 25 percent more bookings than in 2019. Airbnb's share price grew more than 5 percent over the week.
DOORDASH DELIVERS
Another stock that benefitted from what's increasingly looking like a new post-pandemic normal was DoorDash. The company's latest earnings showed a 35 percent year-over-year increase in delivery orders and a 36 percent increase in gross spending. For a lot of companies coming out of the pandemic, that gain might have been less impressive, but DoorDash excelled during the lockdowns. The fact that growth is still ratcheting up could be a sign that the delivery economy made some lasting gains. Shares were up 10 percent on Thursday.
VIACOMCBS REBRANDS
ViacomCBS rebranded this week as Paramount Global in a bid to place its budding streaming service at the center of its business model. The media conglomerate was a latecomer to the streaming wars with its Paramount+ but is quickly gaining ground on competitors such as HBO Max and Netflix. Now it plans to bundle Showtime with Paramount+ and give it exclusive streaming rights to all Paramount Pictures movies by 2024. Investors weren't impressed, however, and shares tumbled 18 percent following its earnings report.
WALMART WEATHERS INFLATION
Meanwhile, the leading brick and mortar retailer showed that it's weathering inflation headwinds. Walmart's stock popped on Thursday despite the broader market downturn as the company reported solid earnings and evidence that it was largely absorbing higher costs. Due to its dominant position in the market, the company was able to keep shelves stocked and prices relatively low, even as inflation drove up prices throughout the economy. But even Walmart's status as a world-bestriding monopoly didn't save it from supply chain woes. The company reported that supply-chain costs were over $400 million higher than anticipated.
Chris Williamson, Chief Business Economist at S&P Global, breaks down September’s CPI print and inflation trends, explaining what it means for markets.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
