Airbnb (ABNB) Q3 income up 280%, Square (SQ) misses estimates

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Airbnb (ABNB) Q3 income up 280%, Square (SQ) misses estimates

 Airbnb (ABNB) Q3 income up 280%, Square (SQ) misses estimates
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Highlights

  • Bitcoin revenue of Square, Inc. (NYSE: SQ) surged 11% YoY in Q3, FY21
  • The revenue of Airbnb, Inc. (NASDAQ: ABNB) increased by 67% YoY in Q3, FY21
  • ABNB's net income was up 280% YoY in Q3, FY21

The stocks of Square, Inc. (NYSE: SQ) and Airbnb, Inc. (NASDAQ: ABNB) caught investors' eyes on Wall Street Thursday, November 4, following their quarterly earnings release. The former was down around 2%, while the latter jumped more than 3% at the market close of November 4.

The shares of SQ closed at US$247.46 on Thursday, down by 1.99% from their previous closing price, while the ABNB stocks were priced at US$178.45 on November 4, up 3.23% at the market close.

Here we explore the earnings highlights of the companies.

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Square, Inc. (NYSE: SQ)

Square is a financial services company that offers digital payment services for consumers. It is based in San Francisco, California.

The company was expected to post a strong profit from its crypto trading business, but the results have suggested otherwise as it failed to meet analysts' estimates.

The company's total net revenue was US$3.84 billion in Q3, FY21, as compared to US$3.03 billion in the same quarter of the previous year, while its bitcoin revenue jumped about 11% YoY to US$1.81 billion. Its gross profit was US$1.13 billion, as compared to US$794 million in the third quarter of the prior year.

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Square's operating income was US$22.99 million, as compared to US$49.34 million in the year-ago quarter. It reported a net loss of US$2.87 million, against an income of US$36.51 million in Q3, FY20.

It has a market cap of US$113.90 billion, a P/E Ratio of 217.07, and a forward one-year P/E ratio of 323.69. Its EPS is US$1.14.

The 52-week highest and lowest stock prices were US$289.23 and US$162.15, respectively. Its trading volume was 10,195,340 on November 4.

Also Read: Qualcomm (QCOM) posts strong Q4, fiscal 2021 results

Third quarter earnings highlights of Square, Inc. (SQ) and Airbnb, Inc. (ABNB)

Also Read: T-Mobile (TMUS) stock jumps 5% a day after Q3 results

Airbnb, Inc. (NASDAQ: ABNB)

Airbnb is a vacation rental company that provides an online platform for lodging, and other travel-related services. It is based out of San Francisco, California.

The company has reported a robust quarterly performance report on Thursday, showing that even the fresh outbreak of the Covid-19 delta variant during the third quarter, didn't affect its earnings and sales too much.

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Airbnb's revenue jumped 67% YoY to US$2.2 billion in Q3, FY21, while its adjusted EBITDA was up 120% YoY to US$1.1 billion.

Its net income came in at US$834 million, representing an increase of 280% from the previous year's third quarter.

The market cap of the company is US$106.42 billion, and the forward one-year P/E ratio is -640.26. The stock saw a highest price of US$219.94 and a lowest price of US$121.50 in the last 52 weeks. Its share volume on November 4 was 9,664,613.

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Bottom line:

The companies were on the investors' radar for some time, evident by the returns their stocks have provided. The stock value of SQ increased by 14.16% YTD, while the ABNB stocks gained 24.23% YTD. However, traders should closely evaluate the companies before considering an investment.

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