- Wall Street gains slightly to end the week
- Airbnb loses 5% in today's session after the company announced third quarter results.
- Worse-than-expected forecasts push down shares of Arista Networks
Wall Street starts the final cash session higher this week, although the scale of the gains is limited. Companies included in MAG7 today are mostly settling around yesterday's closing levels, rebounding from powerful gains driven by the US election.
Preliminary UoM data for November indicated slightly better US consumer sentiment and slightly lower-than-expected inflation forecasts for the coming year. On the other hand, however, survey respondents believe that inflation will remain at slightly higher levels in the longer term.
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Volatility currently observed on Wall Street. Source: xStation5
US2000 (D1)
The Russell-2000 index, represented by the US2000 contract, is currently trading slightly above yesterday's low, which is an important support for the bulls after the dynamic impulse. For bears, the key levels are the recently exceeded maximum at 2425 points.
The RSI is showing signs of overbought on the index, crossing the 70 zone. However, in the long term, the uptrend is visible all the time.
Źródło: xStation5
Source: xStation5
Company news:
Airbnb (ABNB.US) is losing 5% during today's session after the company announced its third quarter results. Although analysts hailed the results as solid, they noted the impact of investments on declining margins. Airbnb forecast an acceleration in room nights and growth in Q4, although the company also expects a compression in adjusted Ebitda y/y, as “increased marketing and product development expenses begin to weigh on financials.
FOURTH QUARTER FORECAST
- Booked room nights growth above 8.5% in Q3, estimated 7.7%
- Revenue up from $2.39 billion to $2.44 billion, estimated $2.42 billion
- EBITDA margin revised down y/y due to higher marketing and product development expenses
ANNUAL FORECAST
Adjusted EBITDA margin at around 35.5%, previously expected 35%, analysts expected 35.4%
Q3 RESULTS
- Revenue $3.73 billion, +9.9% y/y, estimated $3.72 billion
- Gross bookings value $20.1 billion, +9.8% y/y, estimated $19.8 billion
- Adjusted EBITDA $1.96 billion, +6.8% y/y, estimated $1.86 billion
- Adjusted EBITDA margin 52% vs. 33% q/q, estimated 50%
- EPS $2.13 vs. $6.63 y/y, estimated $2.15
- Free cash flow $1.07 billion, -18% y/y
Shares of Arista Networks (ANET.US) are down 5.2% after the company reported worse-than-expected revenue growth of 15% to 17% in fiscal 2025, compared to analysts' 18% estimate. The quarterly results themselves, however, came in better than expected.
Other news from S&P500 index companies. Source: Bloomberg Financial LP
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