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Highlights:
- Walt Disney Company's revenue rose nine per cent YoY in Q4 FY22.
- Rivian Automotive delivered over 6500 vehicles in Q3 FY22.
- NIO Inc's total delivery rose over 26 per cent quarter-over-quarter (QoQ).
The US stock market has seen a volatile wave so far in 2022, with the market losing much of the gains it has attained last year.
Investors showed their confidence in the market last year, as the economy was coming out of the COVID-19 pandemic hit, reflected by the notable gains in the market.
However, in the ongoing year, the soaring prices, higher policy rates, and geopolitical turmoil between Russia and Ukraine have weighed on the investors' sentiment. Meanwhile, the earnings season is closely being watched by investors, as it provides insights into the company's performance amid the hovering uncertainties in the market.
Last week, several companies reported their quarterly earnings results. Some of them include Activision Blizzard, Inc. (NASDAQ:ATVI), Walt Disney Company (NYSE: DIS), Rivian Automotive, Inc. (NASDAQ:RIVN), and NIO Inc. (NYSE:NIO).
In addition to that, the inflation data also came in last week, which showed that the US inflation has cooled down in the prior month. All three indices noted significant gains following the inflation data of last Thursday, November 10.
So, let's take a closer look into the recent stock performance and financial highlights of these companies for cues on the impact of the macroeconomic factors on the corporations' profit:
Activision Blizzard, Inc. (NASDAQ:ATVI)
The stocks of the video gaming holding firm, Activision Blizzard closed at US$ 74.14 last Friday, November 11. The Santa Monica, California-based video gaming company reported its earnings on Monday, November 7.
The ATVI stock soared over 11 per cent YTD and about nine per cent YoY, at its closing price of November 11. In the ongoing quarter, it traded flat through last Friday.
Activision Blizzard CEO, Bobby Kotick said during the earnings release, that they are expecting the merger with Microsoft Corporation (NASDAQ:MSFT) to be concluded by the fiscal year ending on June 2023.
Meanwhile, in another letter, he said that the company is cooperating with regulators from various countries. In addition, the proposed transaction had already been approved by countries like Brazil.
Activision Blizzard's GAAP EPS was US$ 0.55 per share on revenue of US$ 1.78 billion in Q3 FY22, against an income of US$ 0.82 per share on revenue of US$ 2.07 billion in Q3 FY21.
Walt Disney Company (NYSE:DIS)
The stocks of the leading mass media and entertainment conglomerate firm, Walt Disney closed at US$ 95.01 on November 11, noting a jump of over five per cent from its previous close.
The stock of the company that aims to entertain, inform, and inspire people globally, fell 38 per cent YTD and 41 per cent YoY, despite the significant gains last Friday.
The US$ 173.20 billion market cap firm was at its 52-week low of US$ 86.28 on November 9, 2022, a day after it reported its final quarter and fiscal 2022 earnings results.
Walt Disney Company's final quarter revenue rose nine per cent YoY to US$ 20.15 billion, while its annual revenue surged 23 per cent YoY to US$ 82.72 billion in fiscal 2022.
The mass media company's diluted earnings from continuing operations were flat YoY to US$ 0.09 apiece, while for fiscal 2022, it rose 58 per cent YoY to US$ 1.75 apiece.
Rivian Automotive, Inc. (NASDAQ:RIVN)
The stock of the EV maker, Rivian Automotive closed at US$ 34.90 on November 11, up 5.89 per cent from its previous session's close. The EV maker and automotive technology company's stock fell slumped 66 per cent YTD and about 71 per cent YoY.
The US$ 31.48 billion market cap company announced its Q3 FY22 financial results on November 9. Rivian Automotive Inc's revenue was US$ 536 million in Q3 FY22, against US$ one million in the year-ago quarter. The net loss incurred by the automotive technology firm was US$ 1.72 billion in Q3 FY22, compared to US$ 1.23 billion in Q3 FY21.
The EV maker said it manufactured 7,363 vehicles in Q3 FY22 and delivered 6,584 vehicles in the quarter. The company said that the figures were in line with the company's previous expectations to deliver its 25,000 annual vehicle production guidance.
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NIO Inc. (NYSE:NIO)
The shares of another EV maker, NIO Inc, rose nearly 12 per cent on November 11, to close at US$ 11.56. The Chinese EV maker reported its earnings results on November 10 at 5 am ET.
NIO Inc's total revenue rose 32.6 per cent YoY to RMB 13 billion or US$ 1.82 billion in Q3 FY22, and its net loss surged 392.1 per cent YoY to RMB 4.11 billion or US$ 577.9 million.
The Chinese electric vehicle manufacturer delivered 31,607 vehicles in Q3 FY22, representing a jump of 29.3 per cent YoY and 26.1 per cent QoQ.
Bottom line:
Several key events last week kept the investors busy. The US midterm polls, and CPI data, among others, were the crucial factors that were closely tracked by the investors.
However, the election trends allayed the previously anticipated red wave or victory of the Republicans by an outstanding margin. On the other hand, the US inflation also came in at its lowest level in 2022, suggesting that the Federal Reserve's aggressive measures are taking effect.
The S&P 500 and Nasdaq index notched their biggest one-day percentage gains in over two and half years, as the inflation came in below eight per cent on an annual basis for the first time in about eight months.
The US inflation surged 7.7 per cent in October, following a jump of 8.2 per cent in the prior month, according to Labor Department's report from last week. The better-than-anticipated inflation data also suggested that the Fed may ease its hawkish approach in its fight against inflation. Now, many market participants are anticipating a slower hike in the policy rates in December.
However, despite the strong gains last week, the S&P 500 index, which generally reflects the overall health of the market, was down over 14 per cent YoY and about 16 per cent YTD.
