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Uber reports earnings, AMC falls despite ‘The Batman’ ticket sales, PVH shares dip

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Yahoo Finance Live's Rachelle Akuffo, Emily McCormick, and Brad Smith break down the action surrounding several of today's trending tickers.

Video Transcript

RACHELLE AKUFFO: Welcome back to "Yahoo Finance Live." It's time for our Triple Play, the three stocks that we're keeping an eye on today. Now, I'm going to start off with Uber. Now, we did see that stock jump at the start of trading today, as it raised guidance for the current quarter. But it could not hold on to those gains and started losing ground and really got swallowed up by some of the broader market downturn that came from the Russia-Ukraine conflict, as well as inflation uncertainty as well.

Now, EBITDA, or earnings before interest, taxes, depreciation, and amortization, measures a company's overall financial performance. Now, Uber's was raised to from between $100 million and $130 million to between $130 million and $150 million. Now, Uber's CEO, Dara Khosrowshahi, said that the company expects the coming travel season to be one of the strongest ever, with its mobility business bouncing back from Omicron faster than expected.

It's also getting a boost from travel to airports, its ridesharing business nearing prepandemic levels. And as offices reopen as well, more rides there, and as well as it's expanding delivery services in terms of what it offers and the countries. It's also expanding in Germany as well.

BRAD SMITH: The interesting thing here for Uber is that even as they were moving higher on their own forecasts earlier today, it was almost like a rising tide, if you will, lifting the ship of Lyft as well. Lyft was reacting positively. But ultimately, we've seen that reverse course as well. And so I think one of the things that companies and investors here are also going to have to think through is that if you do have a rising environment where you're looking at higher costs for operating those rides, many of the drivers, they themselves are looking at how much they are paying per gallon. And if you see an increased cost that they are incurring, that also could be an increased cost for where Uber and Lyft have to really roll out some of these re-engagement campaigns in order to ensure that they're retaining the necessary amount of drivers on the platform to fulfill either deliveries or some of the ride hailing that comes through. And so with those bookings, that's going to be watched going forward.

But I think for Uber and for Lyft, what they have been able to signal, or at least from Uber's side as well that they've been able to signal, they're somewhat optimistic at this point in time as the world continues to start to reopen at least. And with that in mind, we're going to be watching whether some of those mask mandates that are being lifted also prompt even more of those rides being hailed at the end of the day, too, here.

I'll keep things moving along to AMC. I'm watching this one here on the day, as not even Batman could save AMC's stock from moving lower here, it seems. Even though it was a good performance over the week, or the weekend, rather, at the box office for AMC, where you saw the Batman movie, the latest edition, bringing in $128 and 1/2 million.

For AMC, this is still a company that I think many investors are looking at most recently on the fact that they have diluted so much of what the company's shares would look like. And even though they're holding onto a 52-week gain at this point in time, let's remember, it's still a 52-week gain that was prior that leg of the meme stock frenzy that went fourth. And ultimately, there you're seeing that hockey stick type rise that they were able to see as a result of that frenzy.

But as of this year and what we're seeing over the course of this past year, I think what's most important to remember is that reattachment to fundamentals also comes at a cost. And so they're going to continue to roll out some of the red carpet, if you will, for some of these major debuts. We've talked about the pricing flexibility for some of the biggest box office performers that they're anticipating. And we'll see if that pays off for them and how investors reward that as well in the future.

EMILY MCCORMICK: Well, absolutely, Brad. And just on that topic of the ticket price flexibility, AMC really is running an experiment here in a price elasticity and consumer demand, as we have this reopening taking place. "Batman" bringing in around $130 million in the second-best opening of the pandemic, behind "Spiderman-- No Way Home," so far this past year.

So again, I do think this is going to beg the question of whether these ticket price increases for the blockbusters are going to be sticky, contributing to the broader inflation we've been seeing across the economy, and whether some of the studios that aren't necessarily working on a Marvel or DC film are going to have some kind of leverage to go to some of these theaters and say, we want our ticket prices to be raised, too, and bring in some of that extra revenue. So certainly a couple of interesting developments we'll be tracking there on the movie theater front.

But shifting gears now, I'm also watching shares of PVH. Now, you may not have heard of PVH, but it's the parent company of clothing brands, including Tommy Hilfiger and Calvin Klein. Now, it's the worst performer in the S&P 500 today after getting a downgrade to neutral from outperform at Wedbush. And that's because Wedbush thinks PVH's exposure to the European market leaves it vulnerable to a growth slowdown if consumer sentiment drops over there and spending falls because of the Russia-Ukraine war.

Now, a lot of the growth at PVH has really been coming specifically from Europe. And this is really the key quote that I saw from this note from Wedbush. Quote, "We see that international growth has driven PVH's business over the past two years, offsetting significant COVID headwinds domestically. If trends in Europe slow meaningfully due to the situation in Ukraine, it could have significant effects on the growth algorithms at Ralph Lauren, and especially PVH." Now, we should also note that Wedbush also cut Ralph Lauren shares to neutral from outperform.

So I think we talk a lot about the energy market impact, the agricultural commodity market impact of the Russia-Ukraine situation. But this is, again, really getting to the point that this is impacting a broad range of industries and the retailers. And even the luxury retailers are no exception to that.