Tag Archives: Zillow Group Inc

Business

Under Armour, Zillow, Expedia and others

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Check out the companies making headlines before the bell:

Under Armour (UAA) – The athletic apparel maker reported an adjusted quarterly profit of 14 cents per share, doubling consensus estimates, with better-than-expected revenue. Under Armour saw strong demand for its athletic wear and was also helped by higher prices implemented to counter increased costs. However, Under Armour said its gross margins would fall by 200 basis points for the current quarter due to supply chain challenges, and the stock slid 2.6% in premarket action.

Newell Brands (NWL) – The household products maker’s stock added 1.2% in premarket trading after reporting better-than-expected profit and revenue. it also issued an upbeat profit forecast. The company behind brands like Mr. Coffee, Crock-Pot and Sunbeam earned an adjusted 42 cents per share for its latest quarter, 10 cents above estimates.

Zillow Group (ZG) – Zillow posted an adjusted quarterly loss of 42 cents per share, compared with a projected loss of $1.07. The real estate website operator also reported better-than-expected revenue. Those results came despite an $881 million loss on its now-shuttered home-flipping business. Zillow shares surged 13.2% in the premarket.

Expedia (EXPE) – Expedia earned an adjusted $1.06 per share for its latest quarter, beating the 69-cent consensus estimate, though the travel services company’s revenue was just shy of analyst forecasts. Expedia said the Covid-related impact on travel bookings was significant, but less severe and for a shorter duration than prior Covid waves. Expedia rallied 4.6% in premarket trading.

Aurora Cannabis (ACB) – Aurora Cannabis reported better-than-expected cannabis sales during its latest quarter, the first time it’s been able to exceed analyst estimates in more than a year. Aurora reported a quarterly loss of $59 million, substantially less than a year earlier. The stock slid 4.6% in premarket action.

Zendesk (ZEN) – Zendesk rejected a takeover bid of $127 to $132 per share from a group of private equity firms. The software development company said it would push ahead with its proposed acquisition of SurveyMonkey parent Momentive Global (MNTV), despite pressure from activist investor Jana Partners to abandon the deal. Zendesk rose 2.7% in the premarket, while Momentive Global jumped 7.9%.

GoDaddy (GDDY) – GoDaddy beat estimates by 11 cents with adjusted quarterly earnings of 52 cents per share and better-than-expected revenue. The cloud computing company also announced a $3 billion share repurchase program. GoDaddy leaped 5.8% in the premarket.

Yelp (YELP) – Yelp more than doubled the 14-cent consensus estimate in reporting a quarterly profit of 30 cents per share. The online review site operator also reported better-than-expected revenue amid strength in its advertising business. Yelp jumped 4.5% in premarket action.

Affirm Holdings (AFRM) – The financial technology company — best known for its buy-now-pay-later plans — tumbled 10.4% in the premarket after plummeting 21.4% in Thursday trading. Affirm stock first plunged after the company inadvertently released its quarterly report earlier than intended. The pressure continued amid projections of higher transaction volume but lower-than-expected revenue.

Cedar Fair (FUN) – The theme park operator’s stock gained 2.8% in premarket trading following a Bloomberg report that private equity firm Centerbridge Partners acquired a 5% stake. Cedar Fair is currently in the process of reviewing a $3.4 billion takeover bid from SeaWorld Entertainment (SEAS).

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Business

Zillow, Expedia, Cloudflare and more

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The Expedia homepage is displayed on laptop computers arranged for a photograph in Washington, D.C., U.S.

Andrew Harrer | Bloomberg | Getty Images

Check out the companies making headlines after the bell: 

Expedia — Shares of the travel company jumped more than 5% in extended trading after a better-than-expected earnings report. Expedia posted adjusted earnings of $1.06 per share, higher than a Refinitiv estimate of 69 cents. The company said the impact from the pandemic was less severe and of shorter duration than previous waves.

Zillow Group — The real estate company saw its shares soaring 14% in after-hours trading after a revenue beat. Zillow reported revenue of $3.9 billion in the fourth quarter, topping Wall Street’s expectations, according to Refinitiv. “Zillow has a rock-solid financial foundation and a core IMT business in which we are reporting record profits today,” said Zillow co-founder and CEO Rich Barton.

Cloudflare — Shares of the web security company jumped about 5% in extended trading after its quarterly earnings and revenue came in stronger than expected. Cloudflare also announced that it acquired Vectrix to assist businesses in gaining control of their applications.

Upwork — The freelancer platform’s stock dropped 8% in after-hours trading even after its quarterly revenue beat expectations. Upwork reported sales of $137 million, higher than a Refinitiv estimate of $132 million. It reported a quarterly loss of 5 cents per share, matching analysts’ expectations.

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Business

Opendoor Q3 earnings beat estimates

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Eric Wu, founder and chief executive of Opendoor, a start-up company that flips homes, at their San Francisco headquarters, May 18, 2017.

Christie Hemm Klok | The New York Times

A week after Zillow announced its sudden departure from the home-buying market, rival Opendoor reported third-quarter results that topped estimates and issued an optimistic forecast for the rest of the year, sending the stock soaring in extended trading.

Opendoor jumped 16% after hours to $22.48. Prior to the post-market rally, the stock was down 1% for the year.

Revenue in the quarter climbed to $2.27 billion from $338.6 million a year earlier, when the Covid-19 pandemic put a temporary freeze on transactions. Revenue was up 91% from the second quarter, and exceeded the $2.01 billion average analyst estimate, according to Refinitiv.

Founded in 2014, Opendoor pioneered the instant-buying, or iBuying, home market by allowing homeowners to sell their home for cash without listing it on the market and dealing with a lengthy bidding and closing process. The company went public in December through a special purpose acquisition company.

Zillow started testing the iBuying market in 2017 and jumped in big two years later, when it began buying and selling in Southern California. The business worked initially, but hit major snags this year as massive swings in home prices undermined Zillow’s predictive models and ultimately left the company spending more on properties than it could make selling them.

Zillow shares plummeted 25% after the announced departure from the market last week, and the company said it’s eliminating a quarter of its workforce. The stock has lost over two-thirds of its value since peaking in mid-February.

OpenDoor is disrupting the real estate market with its new model. It buys homes and sells them on its platform.

Opendoor

In an interview after Opendoor’s report on Wednesday, finance chief Carrie Wheeler said the company has built its technology to ensure it can manage through unpredictable market events.

“We’re really good at pricing,” Wheeler said. “We’ve been doing it for seven years. It’s core to what we do. We’re focused on data.”

In addition to exceeding revenue estimates, Opendoor’s loss of 9 cents a share was below the 17-cent loss analysts were expecting. And for the fourth quarter, Opendoor forecast revenue of $3.1 billion to $3.2 billion, topping the $2.92 billion average analyst estimate, according to Refinitv.

Opendoor sold 5,988 houses in the period, up 72% from the second quarter, and it purchased 15,181 homes, which was up 79% from the prior period.

“We exited the high end of our guidance, primarily due to unit volumes driven by strong home acquisition growth and the overall strength of demand for homes, which led to a faster sell through rate than we anticipated,” Wheeler said on the earnings call after the report.

WATCH: Zillow CEO on getting out of home-flipping business

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Business

Semiconductor shortage to be in focus yet again

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CNBC’s Jim Cramer on Friday looked ahead to next week’s of earnings reports, detailing for investors his key market events to keep an eye on.

The “Mad Money” host’s comments came after all three major U.S. equity indexes closed at record highs Friday, despite disappointing quarterly results a day earlier from market heavyweights Amazon and Apple.

All revenue and per-share earnings projections are based on FactSet estimates:

Mad Money with Jim Cramer

Monday: ON Semiconductor, NXP Semiconductors, Diamondback Energy and Clorox

On Semiconductor

  • Q3 results before the bell; conference call at 9 a.m. ET Monday
  • Projected EPS: 74 cents
  • Projected sales: $1.7 billion

NXP Semiconductors

  • Q3 results; conference call at 8 a.m. ET Tuesday
  • Projected EPS: $2.75
  • Projected sales: $ 2.85 billion

Both companies’ earnings will offer “a read on one of the biggest stories in this market, and that’s the semiconductor shortage,” Cramer said. “They do a lot of auto semis, and they’ve got exposure to many of the others areas where there are the biggest bottlenecks.”

Diamondback Energy

  • Q3 results after the close; conference call at 9 a.m. ET Tuesday
  • Projected EPS: $2.79
  • Projected revenue: $1.54 billion

Clorox

  • Q1 2022 results after the bell; conference call at 5:30 p.m. ET Monday
  • Projected EPS: $1.03
  • Projected revenue: $1.7 billion

“I hope for the best, but I am preparing for the worst,” Cramer said, noting the household products maker may not be able to pass through all of its higher commodity costs, possibly hurting margins.

Tuesday: Estee Lauder, DuPont, Pfizer, BP, Devon Energy, T-Mobile and Zillow

Estee Lauder

  • Q1 2022 results before the open; conference call at 9:30 a.m. ET Tuesday
  • Projected EPS: $1.70
  • Projected sales: $4.25 billion

DuPont

  • Q3 results before the bell; conference call at 8 a.m. ET Tuesday
  • Projected EPS: $1.12
  • Projected sales: $4.16 billion

Cramer’s charitable trust owns both Estee Lauder and DuPont. “I don’t expect them to have superb quarters. Fortunately, the expectations are low, though, so it won’t take much to produce an upside surprise that moves the stocks up,” he said.

Pfizer

  • Q3 results before the open; conference call at 10 a.m. ET
  • Projected EPS: $1.08
  • Projected revenue: $22.58 billion

“Unlike Moderna, Pfizer’s a lot more complicated than just a Covid vaccine story. See, they’re facing what’s known as a patent cliff next year,” Cramer said. “We need to know if the boosters, which cost a lot of money, … are going to cover the patent cliff.”

BP

  • Q3 results before the bell; conference call at 5 a.m. ET Tuesday
  • Projected EPS: £ 10.83
  • Projected revenue: £29.06 billion

Devon Energy

  • Q3 results after the close; conference call at 11 a.m. ET Wednesday
  • Projected EPS: 93 cents
  • Projected sales: $3.23 billion

T-Mobile

  • Q3 results after the close; conference call at 4:30 p.m. ET Tuesday
  • Projected EPS: 48 cents
  • Projected revenue: $20.22 billion

“The [telecommunications] industry has got a clear pecking order: T-Mobile for growth, Verizon for the dividend, and AT&T for nothing. Let’s see how many subscribers T-Mobile has been able to steal from its rivals when they report,” Cramer sad.

Zillow

  • Q3 after the close; conference call at 5 a.m. ET Tuesday
  • Projected EPS: 16 cents
  • Projected revenue: $2 billion

“They had to put the real estate flipping business on pause because the economics turned out against them, but what does that really mean? We’re going to find out on Tuesday,” Cramer said.

Wednesday: CVS Health, Humana, Marriott International, Wynn Resorts, Qualcomm and Etsy

CVS Health

  • Q3 results before the bell; conference call at 8 a.m. ET Wednesday
  • Projected EPS: $1.79
  • Projected revenue: $70.5 billion

“This stock’s been on a roll, bolstered by Covid vaccines and superior execution, at least compared to arch-rival Walgreens. I don’t know if it can continue now that the pandemic’s winding down, but remember that CVS also has a huge health insurance business,” Cramer said.

Humana

  • Q3 results before the open; conference call at 9 a.m. ET Wednesday
  • Projected EPS: $4.66
  • Projected revenue: $20.9 billion

Cramer said he expects the health insurer’s numbers to be even better than rivals Centene and UnitedHealth Group.

Marriott International

  • Q3 results before the bell; conference call at 8:30 a.m. ET Wednesday
  • Projected EPS: 99 cents
  • Projected sales: $3.71 billion

Wynn Resorts

  • Q3 results after the close
  • Projected EPS: Loss of $1.36
  • Projected revenue: $943 million

Cramer said he expects Marriott International to have a better story to tell about the hospitality recovery compared to Wynn Resorts, which his charitable trust owns. He said that’s because of Wynn Resorts’ exposure to the gaming hub of Macau.

Qualcomm

  • Q4 results after the close; conference call at 4:45 p.m. ET Wednesday
  • Projected EPS: $2.26
  • Projected revenue: $8.85 billion

“They’ll give us more insight into the cellphone market, but I bet that can’t be that positive, either,” Cramer said, alluding to the chip crunch.

Etsy

  • Q3 results after the close; conference call at 5 p.m. ET Wednesday
  • Projected EPS: 55 cents
  • Projected revenue: $519 million

“I bet CEO Josh Silverman will have a lot of good to say about his e-commerce platform for handicrafts—should make a nice contrast to Amazon’s disappointing quarter,” Cramer said.

Thursday: Uber, Skyworks Solutions, Peloton and Square

Uber

  • Q3 results after the close; conference call 5 p.m. ET Thursday
  • Projected EPS: Loss of 34 cents
  • Projected revenue: $4.41 billion

“I think Uber can deliver, but the stock’s been kept down by persistent sellers, so even a good quarter might not matter, at least not until these weak hands finish dumping their shares,” Cramer said.

Skyworks Solutions

  • Q4 results after the bell; conference call at 4:30 p.m. ET Thursday
  • Projected EPS: $2.55
  • Projected sales: $1.3 billion

“Maybe they give us some insight into when the chip shortage nightmare can come to an end,” Cramer said.

Peloton

  • Q1 2022 results after the close; conference call at 5 p.m. ET Thursday
  • Projected EPS: Loss of $1.10
  • Projected sales: $809 million

The fitness equipment maker was a major pandemic winner, but the stock has struggled to gain traction since investors shifted toward reopening plays, Cramer said. “I think they’ve got their work cut out for them.”

Square

  • Q3 results after the close; conference call at 5 p.m. ET Thursday
  • Projected EPS: 37 cents
  • Projected revenue: $4.38 billion

“I’m betting their mojo will be absent for now, mojo being a technical term on Wall Street for the massive love a stock gets after a monster beat and raise quarter,” Cramer said.

Friday: Enbridge and October nonfarm payrolls

Enbridge

  • Q3 results before the bell; conference call at 9 a.m. ET Friday
  • Projected EPS: 57 cents
  • Projected revenue: $9.62 billion

Cramer said he likes the company’s dividend payment. “Plus, we have a real shortage of energy infrastructure, so I bet business is good,” Cramer said.

The Labor Department’s report on nonfarm payrolls for the month of October is out at 8:30 a.m. Friday, but Cramer cautioned the recent monthly reports have been “all over the map right now,” making their appearance “seem deceiving.”

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Business

Cathie Wood’s Ark Innovation fund is set for a big rebound Tuesday as Tesla, other tech darlings pop

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Cathie Wood, CEO and founder of ARK Invest.

CNBC

Widely followed investor Cathie Wood is about to recoup some of her recent sharp losses as tech stocks rebounded Tuesday after a brutal correction triggered by surging bond yields.

Wood’s flagship active exchange-traded fund Ark Innovation ETF (ARKK) climbed 4.8% in premarket trading on Tuesday. Tesla, the fund’s biggest holding, is up 5.2% in early trading. Among other holdings, Zoom Video is up 4.2%, while Palantir gained 3.7%.

Another big holding Invitae is up 10% in premarket trading Tuesday. She told CNBC on Monday that the company, which operates in the molecular diagnostics space, is one of the firm’s most under-appreciated holdings.

The rebound in ‘ARKK’ came amid a 2% jump in Nasdaq 100 futures as bond yields stabilized. The Nasdaq Composite dropped 2.4% on Monday, falling into correction territory, or more than 10% from its recent high.

Wood, who focuses on innovative technology, has seen stocks fitting her strategy get hammered lately amid a big market rotation out of high-flying tech and into cyclical value stocks in the face of higher rates. The fund lost 5.8% on Monday alone, pushing its 2021 losses to 11%.

High-growth names are hit particularly hard as rising rates make their future profits less valuable today, making the stocks’ lofty valuations less justifiable. Many of her big stakes experienced steep losses over the past month: Tesla has shed 33%, Zoom Video has lost 27%, Palantir is down 41%.

The Ark Investment Management founder and CEO said Monday she is not concerned about the recent drop in her funds and she believes over time her disruptive strategy will pay off.

“Right now the market is broadening out and we think in an underlying sense the bull market is strengthening and that will play to our benefit over the longer term,” said Wood said on CNBC’s “Closing Bell” on Monday.

“We are getting great opportunities” in the sell-off to buy the pure play names in the funds, added Wood.

Wood gained a wide following on Wall Street after a banner 2020 that saw her flagship fund return nearly 150% as the pandemic accelerated innovation trends. The fund’s asset under management has ballooned to more than $17 billion.

— CNBC’s Maggie Fitzgerald contributed reporting.

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Business

Cathie Wood says the underlying bull market is strengthening and she’s finding great buying opportunities in the sell-off

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Cathy Wood

Crystal Mercedes | CNBC

Ark Investment Management founder and CEO Cathie Wood said she is not worried about the recent drop in her funds and that the bull market is simply broadening out to include more strategies like value.

The hot handed investor added that over time her disruptive strategy will pay off, and she’s capitalizing on the sell-off.

“Right now the market is broadening out and we think in an underlying sense the bull market is strengthening and that will play to our benefit over the longer term,” Wood said on CNBC’s “Closing Bell” on Monday.

Wood manages five ETFs focused around “disruptive innovation” that have raked in more than $15 billion of investor money this year alone. Ark’s flagship fund — Ark Innovation — returned nearly 150% in 2020 as the pandemic accelerated innovation trends and now has more than $17 billion in net assets. However, ARKK is down about 8% this year amid recent weakness in technology stocks, pressured by rising interest rates.

“We are getting great opportunities” in the sell-off to buy the pure play names in the funds, said Wood. “When we get opportunities like this to invest in pure plays instead of more mature plays…we will move back into pure plays.””

We are becoming more and more optimistic about our portfolios in this sell-off,” she added.

Wood took the recent tech weakness as an opportunity to buy the dip in some of her ETF’s top holdings. Wood has made big purchases of Tesla, Teladoc, Zoom Video and Palantir, according to the firm’s disclosures. Ark Innovation also scooped up shares of Square, Roku, Zillow and Shopify recently.

Wood said Ark Invest is struck that the market never priced in 0.5%, 1%, or 1.5% yield on the U.S. 10-year Treasury.

“We do think the speed of the increase in interest rates is scaring people. It became very comfortable in a low interest rate environment: nothing much changing, the Fed has our back and so forth,” said Wood.

Wood added that this type of pullback happened to Ark during the fourth quarter of 2016, when President Donald Trump was elected and promised to lower tax rates. During that period, Ark’s strategies went negative.

“The bull market was broadening out to incorporate value or more cyclical sectors and I thought that was going to be very good news for our strategies longer run. The worst thing that could have happened to us what another tech and telecom bubble where the market narrowed so that only a few groups won,” said Wood.

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Business

PepsiCo, Generac, Tempur Sealy, others

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Check out the companies making headlines before the bell:

PepsiCo (PEP) – The beverage and snack giant beat estimates by a penny with adjusted quarterly earnings of $1.47 per share, and revenue was above estimates as well. The company said it expects to see organic revenue and adjusted profit growth this year, and also announced a 5% dividend increase.

Generac (GNRC) – Generac shares rose 3% in pre-market trading after the maker of backup generators beat estimates on the top and bottom lines for its latest quarter, and said it expected net sales growth of 25 to 30 percent this year.

Restaurant Brands (QSR) – The parent of Popeyes, Burger King and Tim Hortons missed estimates by 12 cents with adjusted quarterly earnings of 53 cents per share, while revenue was slightly above forecasts. Shares fell about 2% pre-market as comparable restaurant sales fell more than expected.

Tempur Sealy (TPX) – Shares of the mattress maker surged 12% pre-market after it beat forecasts by 15 cents with adjusted quarterly earnings of 67 cents per share. Revenue beat estimates as well, and Tempur Sealy said it expected 2021 sales growth of 15% to 20%.

LabCorp (LH) – The medical-laboratory operator reported adjusted quarterly earnings of $10.56 per share, well above the $8.11 consensus estimate, and revenue was above forecasts as well. Its results were boosted by Covid-19 testing, and shares were up 3.6% pre-market.

Molson Coors (TAP) – The beer brewer’s shares were down 4.5 % pre-market as it reported adjusted quarterly earnings of 40 cents per share, well below the 77-cent consensus estimate. Its results were hurt by ongoing Covid-19 restrictions for restaurants and bars.

Kraft Heinz (KHC) – Kraft Heinz shares rose 1.7% pre-market, as it beat estimates on the top and bottom lines for its latest quarter, and also announced the sale of its Planters snacks business to Hormel (HRL) for $3.35 billion in cash.

Uber Technologies (UBER) – Uber reported a quarterly loss of 54 cents per share, 2 cents less than anticipated, with revenue slightly below estimates. Uber’s results were helped by an expansion in its food delivery business as well as cost reductions. Uber shares were down 3.8% pre-market.

Bumble (BMBL) – Bumble makes its Wall Street debut today after pricing its initial public offering at $43 per share, above the already raised expected range of $37 to $39 per share. The dating service raised $2.2 billion in the IPO, giving it an overall value of more than $7 billion.

Sonos (SONO) – Sonos shares jumped 17% in pre-market trading, after the maker of high-end smart speakers beat estimates on both the top and bottom lines in its latest quarter. Sonos was helped by stronger margins as no promotions were held during the quarter. It also raised its full-year revenue guidance.

iRobot (IRBT) – iRobot earned an adjusted 84 cents per share for the fourth quarter, well above the consensus estimate of 84 cents, with revenue also comfortably topping Wall Street predictions. The maker of the Roomba robotic vacuum cleaner also gave strong full-year revenue and profit guidance. Shares rose 7.3% in pre-market trading.

Zillow Group (ZG) – Zillow beat estimates by 14 cents with adjusted quarterly earnings of 41 cents per share, with the operator of real estate websites also scoring a revenue beat. It also gave upbeat revenue guidance, and announced the acquisition of online home-viewing-scheduling platform ShowingTime.com for $500 million in cash. Zillow shares rose 12% in pre-market trading.

Zynga (ZNGA) – Zynga CEO Frank Gibeau told Barron’s that the mobile game developer is open to an acquisition offer, although it is not actively looking to sell the company. Zynga also reported a 61% jump in the key metric of net bookings during its latest quarter, more than analysts had anticipated.

XPO Logistics (XPO) – XPO earned an adjusted $1.19 per share for the fourth quarter, well above the 67-cent consensus estimate. The logistics company also saw revenue above forecasts and gave strong full-year earnings guidance. XPO is benefiting from a pandemic-induced acceleration in shipping activity due to an explosion in online shopping.

Merck (MRK) – Merck is in talks with both governments and other drugmakers to help produce already approved Covid-19 vaccines. The drugmaker did not specify which governments or other companies were involved in those talks.

Pinterest (PINS) – Pinterest was approached by Microsoft (MSFT) about a possible takeover in recent months, according to people brief on the matter who spoke to the Financial Times. However, the report added that negotiations about a buyout of the image-sharing company were not currently active.

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