Alibaba stock, Disney streaming, Yeti earnings: Top stocks
Alibaba (BABA) shares are up about 4 percent as the company's first quarter earnings results showed a rise in revenue and net profit. Yeti (YETI) stock is up about 17 percent as the company's second-quarter earnings beat on the bottom line. Disney (DIS) shares rise as the company announced it will be increasing the prices of its streaming services and cracking down on password sharing. Yahoo Finance Live breaks down some of the trending tickers of the day.
Video Transcript
- All right. Let's take a look at some of the individual movers of the day. First up, Alibaba closing the trading session higher. We're still looking at a gain of just about 4.5% revenue. Topping expectations as its core e-commerce division returned to growth for the first time in a year.
And Akiko, when we talk about the Chinese market, the recovery, lack thereof, that we're seeing this, I think this stronger than expected report caught a lot of analysts off guard and the degree that they were able to beat some of these expectations, the magnitude of that beat. But e-commerce unit focusing on the lower cost items to attract more buyers. And at least for right now, looks like that strategy from Alibaba is working.
- Yeah. The backdrop of this quarter certainly adding to the enthusiasm we're seeing from investors and the numbers that came through from Alibaba. To your point, the company able to return in growth in this way at a time when we have seen growth pull back when you look at the overall economy over in China.
What's going to be interesting to me though is how investors continue to value this company as they spin off those assets. Of course, Alibaba about to break off into six different pillars here because of that crackdown that we have seen over in China. So they are seeing a big bump today, but it's going to be interesting to see where that stock is valued increasingly as we see that transformation for Alibaba.
Well, shares of Yeti closing the day higher after reporting mixed earnings for the second quarter, topping expectations on the bottom line. The company raising the lower end of their full year adjusted net sales outlook and increased their 2023 adjusted EPS outlook. That stock up more than 17% today, Seana.
- Yeah. Certainly raising a lot of excitement around this report. And just to give you a better idea of how excited some of these analysts were, Jefferies was out with a note this morning saying that the second quarter shows fundamentals have bottomed, and they're saying buy shares right now. They were very encouraged by these results, raising their price target to $60 this year. Reiterating their buy rating. So $60 this year, about $14 higher from where Yeti closed today.
Gross margin expansion inventories were also down big. They were declining about 34% on a year over year basis. So Jefferies saying that Yeti is well positioned to tap into some of that growth. And also, they see Yeti maintaining some of that healthy cash flow ahead.
When it comes to some of the other reaction that we got from the streets, city, saying it was a solid second quarter. Baird encouraged by the balance sheet. So Wall Street, very satisfied with these results. Whether or not this momentum continues, given the fact that it's obviously a consumer facing brand and consumers pulling back on their spending, it could potentially be a rough couple of months for Yeti.
All right. Let's take a look at Disney, the top performer by far in the Dow today, closing in the green, up nearly 5% after announcing subscription prices are going to be rising for its streaming services. This coming as CEO Bob Iger also said that the company is going to address password-sharing, potentially cracking down on that.
Initially, I mean, it was a mixed report, and we did see mixed reaction right after these results. But some of the developments, like the price increases that came on the call. Also more of a focus, Akiko, on the narrower than expected losses in the streaming side of its business. Certainly reasons for the street and for investors to be encouraged about Disney and the potential direction here going forward.
- Yeah. $512 billion loss is what we're talking about in terms of the streaming operation. You think about where that is from the point of launch for Disney Plus back in 2019. $11 billion loss or more than $11 billion. So Disney obviously making these efforts to really cut costs that's been a big priority for them. So the street liking at least the company not only increasing the subscription but also cracking down on password-sharing. And you could argue Netflix kind of did the dirty work, right? They were able to push this forward. They have had success. Now Disney Plus following. We'll see where that goes moving forward.
- Yeah. We'll see whether or not they see sort of a negative reaction in terms of the churn and subscribers maybe cutting some of their subscriptions. But again, if they're raising the average revenue per user, then it's a win, at least in Disney's eyes.
