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Earnings: Twitter posts mixed results, Uber beats across the board, Sonos tops estimates

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Yahoo Finance Live's Julie Hyman and Brian Sozzi discuss quarterly earnings for Twitter, Uber, and Sonos.

Video Transcript

JULIE HYMAN: Welcome back to "Yahoo Finance Live." We are watching futures this morning that are indicating a lower open, and that's after we got that big CPI print, Brian Sozzi. 7 and 1/2% increase in prices year over year. And now traders are trying to figure out, what does that mean for the Fed? Does that mean now the Fed could raise 50 basis points?

I'm seeing a lot of chatter this morning that, because they haven't sort of telegraphed it yet, that it's not so certain. That they would need to maybe-- there would need to be some Fed speak to that effect before they would make such a move.

BRIAN SOZZI: I have a tremendous respect for the CPI, Julie. But again, we just had Hugh Johnson on over at PepsiCo telling us prices this year might have to go up, at least from their standpoint, 10% given the cost increases. That's significant. That is huge, and Pepsi's not alone.

JULIE HYMAN: Yeah. No, definitely not. We're hearing from a lot of other companies throughout this earnings season that are talking about raising prices this year. And there is also a lot of commentary around all of this that the Fed is behind the ball. So a lot of concern about what all of this is going to mean for the economy. We are seeing some curve flattening happen this morning.

What does that mean? Basically, the spread between the two-year and 10-year Treasury note is narrowing, and that implies concern about economic growth as well. So we're watching all of this very carefully, as we see futures indicate that lower open. And we take the opening bell on this Thursday morning.



And there you've got the NYSE and NASDAQ opening bell this morning. By the way, the CEO of Black Rifle Coffee Company is going to be on later in the show in the 11:00 to 1:00 program. Let's talk about some individual movers that we are watching this morning. Even as we see the futures pull back, that NASDAQ still showing the yesterday move upward, likely to see a similar magnitude move downward here this morning on the back of CPI. There you have it, off by 1.8%.

As we mentioned earlier, it's really big cap tech that has been so vulnerable to changes in interest rate expectations, to changes in inflation expectations, and that is the case once again today. When it comes to individual movers, though, it's a little bit of a different picture, Brian Sozzi.

Let's talk about Twitter, first of all. What's interesting about Twitter is-- it reported its earnings this morning. The numbers weren't that fantastic, but it did announce a stock buyback. And so that helps matters sometimes. The shares are up 3 and 1/2% right now, but they have been bouncing around this morning and were higher at one point. There is a $4 billion stock buyback authorization they announced.

You can see earnings beating by a penny, revenue missing just slightly. And the company also talking about daily active users-- average daily active users up six million in the fourth quarter. 217 million is the total now, and that's up 13% from a year earlier. It looks like the read on this quarter for Twitter is that it wasn't hit too hard by some of the tracking changes that Apple put in place. And so there was a little bit of relief being expressed in the shares early on. That seemingly has melted away, though.

BRIAN SOZZI: You read enough of these earnings reports, Julie, like you and I do, and you pick up on certain things. One thing I picked up on here, and this is a tone of what we also heard from Snap when they reported last week, you get the sense Twitter is dealing with these Apple iOS challenges-- Twitter is doing it pretty well. Ditto, Snap.

Now you and I, we spent some time with Facebook's CFO, and my takeaway from that was that they're still battling. Facebook is still very much in the middle of trying to overcome these challenges with these new privacy issues, whereas Snap and Twitter, for whatever reason-- maybe it's because they're smaller, more targeted, more focused companies-- they're able to overcome these things a lot better.

And then secondarily, I do like that Twitter came out here, and reaffirmed their 2023 goals. There was concern on the street if they can hit those goals, just given the competitive nature of the market, those Apple iOS changes. Twitter's saying they can hit 315 million daily active users by 2023, and they see $7 and 1/2 billion in sales plus by 2023. I suspect a lot of folks in the street were encouraged to see that, even if the stock price is not rising in result.

JULIE HYMAN: A couple of other notes on the quarter. First of all, this was the first quarterly report overseen by the new CEO, Parag Agrawal, who was the CTO before Jack Dorsey unexpectedly resigned at the top of the company. And on the conference call, he said there was urgency to execute on the company's new strategy.

Part of that strategy includes developing a new sort of ad product and ad platform. That's after Twitter had sold MoPub, which was its prior ad product platform. That cost a little bit of a hit in the quarter, and the company is now talking about sort of recovering from that as it develops its new product. So it's sort of dealing with that as it's also dealing with these new tracking measurements because of the Apple changes as well. So both of those things, keep in mind. New leadership here, and also, some new ad products to keep an eye on when it comes to Twitter.

I want to move to Uber because we're watching that stock as well here this morning. Uber shares up a little bit, about 1% here. Let's hit the highlights for Uber here. Overall, EBITDA at the company beating estimates for Uber, you can see there at about $86 million. Gross bookings up 51% to just under $26 billion, and revenue there up 83% to $5.8 billion.

So Uber it looks like performing well sort of across its platforms, but delivery in particular. Monthly active platform users-- that's of everything Uber does-- a record $118 million. And there's a comment from Dara Khosrowshahi, the CEO, in a statement that stood out to me on the mobility side of the business-- that is, the rideshare side of business. He said while the Omicron variant began to impact our business in late December, mobility is already starting to bounce back. And he said gross bookings were up 25% in the most recent week compared with a month earlier.

So just as we have seen the case count start to come back down, businesses that are reliant on people getting out there have been doing a little bit better here, Soz.

BRIAN SOZZI: Yeah. And generally, Julie, I'm fascinated by where the likes of Lyft, and we talked to co-founder John Zimmer yesterday-- where Lyft and Uber are in their life cycles. Finally these companies are being able to string together a couple of quarters of being adjusted operating profitable. That was not the case when they came to public markets a couple of years ago.

And keep in mind, those adjusted operating profits are coming, despite the-- really, the volatility in bookings here because of the pandemic. But both companies saying that they've seen trends or demand bounce back in the latter part of January. I would argue that Uber here, noting 25%-- a 25% increase in bookings in the latter part of January, sounded a little bit stronger in terms of recovery than what we heard from Zimmer yesterday at Lyft.

JULIE HYMAN: Yeah. I think that's fair to say as we see those shares move up. Although, they were sort of bouncing around a little bit as well. Finally, we want to talk about Sonos here this morning. The smart speaker maker up 5%, and that's after adjusted earnings per share beat estimates, $1.02 is what they reported. Revenue coming in, rising about 3% year over year. $664 and 1/2 million, that was ahead of estimates. And the company for the full year is raising the lower end of its revenue forecast a little bit. It's now looking for revenue of $1.95 billion to $2 billion. The lower end to that have been $1.93 billion, and it looks like that they are raising the lower end of their EBITDA forecast as well, Soz.

Sonos has really been a consistent executor here in this market.

BRIAN SOZZI: You know, we always tease Sonos CEO Patrick Spence, he'll be on later on in the program to talk about results, about what is coming next. Please, tell us. He remains very tight-lipped in terms of new products, and I understand that's his style. Cool dude, totally get it. But he did, I think, send some very strong signals on that earnings call last night that Sonos has a couple of new products coming this year. One might be in an existing category, so perhaps, a new-- some form of new upgraded speaker.

Let's keep in mind, though, they have start to push into the car space, which is a big-- which could be a pretty big opportunity for Sonos. And there has been speculation recently of them getting into the headphones market. Whether any of those products will come to market this year in big form, to be determined.

JULIE HYMAN: And Spence, as you mentioned, coming up later. He'll be on at 12:15 today, and you can press him on that. I'm looking forward to hearing what he has to say.