Shopify (SHOP) slumped after it posted non-GAAP earnings a share of only seven cents and a 49-cent GAAP EPS loss. The e-commerce platform could give up gains in the last quarter after the weak results.
Valuations could weigh on Shopify, which has a market capitalization in the $55 billion range. It expects revenue to grow in the high-teen percentage Y/Y. This is too slow and could disappoint investors from here.
Airbnb (ABNB) gained sharply after posting revenue growing by 24.2% Y/Y to $1.9 billion. Gross booking value rose by 20% Y/Y. In Q1/2023, the firm is lowering its EBITDA margin slightly. It cited the timing of its brand marketing spend for the lower outlook.
Investors who bought ABNB stock in Oct. 2022 at $80 should consider taking profits at these prices. The macroeconomic outlook limits the firm’s near-term growth. After 1-2 years, the company will offer clearer prospects.
Software firm Palantir (PLTR) rose after posting its first profit of 4 cents a share, albeit on non-GAAP. It earned $31 million on a GAAP measure, or a penny a share.
Palantir achieved revenue growth when the industry is in decline. This bodes well for its long-term prospects. Still, the company only reported a small profit. It will need more to break out from here.
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