Q3 Earnings Highs And Lows: Wayfair (NYSE:W) Vs The Rest Of The Consumer Internet Stocks
Earnings results often give us a good indication of what direction a company will take in the months ahead. With Q3 now behind us, let’s have a look at Wayfair (NYSE:W) and its peers.
The ways people shop, transport, communicate, learn and play are undergoing a tremendous, technology-enabled change. Consumer internet companies are playing a key role in lives being transformed, simplified and made more accessible.
The 34 consumer internet stocks we track reported a weaker Q3; on average, revenues beat analyst consensus estimates by 1.2% while next quarter's revenue guidance was 1.1% below consensus. Stocks have faced challenges as investors prioritize near-term cash flows, but consumer internet stocks held their ground better than others, with the share prices up 18% on average since the previous earnings results.
Wayfair (NYSE:W)
Launched in 2002 by founder Niraj Shah, Wayfair (NYSE: W) is a leading online retailer for mass market home goods in the US, UK, Canada, and Germany.
Wayfair reported revenues of $2.94 billion, up 3.7% year on year, falling short of analyst expectations by 1.3%. It was a weak quarter for the company, with a miss of analysts' revenue estimates and slow revenue growth.
"Wayfair is now in a place where we can drive profitability while simultaneously investing for growth," said Niraj Shah CEO, co-founder and co-chairman, Wayfair.
The stock is up 28.9% since the results and currently trades at $55.
Read our full report on Wayfair here, it's free.
Best Q3: MercadoLibre (NASDAQ:MELI)
Originally started as an online auction platform, MercadoLibre (NASDAQ:MELI) is a one-stop e-commerce marketplace and fintech platform in Latin America.
MercadoLibre reported revenues of $3.76 billion, up 39.8% year on year, outperforming analyst expectations by 5.9%. It was a very strong quarter for the company, with impressive growth in its user base and exceptional revenue growth.
MercadoLibre pulled off the fastest revenue growth among its peers. The company reported 120 million daily active users, up 36.4% year on year. The stock is up 22.4% since the results and currently trades at $1,588.99.
Is now the time to buy MercadoLibre? Access our full analysis of the earnings results here, it's free.
Slowest Q3: Angi (NASDAQ:ANGI)
Created by IAC’s mergers of Angie’s List and HomeAdvisor, ANGI (NASDAQ: ANGI) operates the largest online marketplace for home services in the US.
Angi reported revenues of $371.8 million, down 25.3% year on year, falling short of analyst expectations by 1.7%. It was a weak quarter for the company, with a decline in its user base and slow revenue growth.
The stock is up 40% since the results and currently trades at $2.31.
Read our full analysis of Angi's results here.
Cars.com (NYSE:CARS)
Originally started as a joint venture between several media companies including The Washington Post and The New York Times, Cars.com (NYSE:CARS) is a digital marketplace that connects new and used car buyers and sellers.
Cars.com reported revenues of $174.3 million, up 5.9% year on year, in line with analyst expectations. It was a weak quarter for the company, with a decline in its user base and slow revenue growth.
The company reported 18,715 active buyers, down 4.4% year on year. The stock is up 16.1% since the results and currently trades at $17.48.
Read our full, actionable report on Cars.com here, it's free.
Netflix (NASDAQ:NFLX)
Launched by Reed Hastings as a DVD mail rental company until its famous pivot to streaming in 2007, Netflix (NASDAQ: NFLX) is a pioneering streaming content platform.
Netflix reported revenues of $8.54 billion, up 7.8% year on year, in line with analyst expectations. It was a strong quarter for the company, with revenue roughly in line with expectations. In addition, streaming net adds (essentially its paying customers) beat across all geographies.
The company reported 247.2 million users, up 10.8% year on year. The stock is up 41.7% since the results and currently trades at $490.7.
Read our full, actionable report on Netflix here, it's free.
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The author has no position in any of the stocks mentioned
