Home » News » Market Highlights: Here is why these stocks trended on Friday

Market Highlights: Here is why these stocks trended on Friday

7 March 2022 By
  • Federal Reserve chairman warns of looming inflation
  • Sweetgreen and Hibbett release quarterly results
  • Disney to introduce new subscriber tier

Federal Reserve Chairman Jerome Powell indicated that Russia's invasion of Ukraine could cause an inflation rise. However, the Fed expects the setback to diminish price pressures in the coming months. Energy prices are rising because of the economic consequences related to the conflict, and consumer prices are rising faster in four decades.

Sweetgreen posts Q4 revenue of $96.4 million 

Sweetgreen Inc. (NYSE: SG) shares were up almost 20% on Friday after the company reported a significant increase in sales in Q4 2021. The fast-casual restaurant firm said that revenue was up 63% YoY attributed to sales uptick to high prices and recovery from the pandemic.

Q4 revenue was $96.4 million, topping consensus estimates of 84.7 million. The company reported a net loss of $66.2 million or $1.14 per share compared to analyst estimates of $0.66 per share.

Disney to unveil a new subscriber tier

Walt Disney Co. (NYSE: DIS) is planning to unveil a new ad-supported category for its streaming service in the US in 2022. However, the media and entertainment conglomerate didn't reveal the amount the category will cost and the exact release date. Also, the company indicates that they will introduce the ad-supported tier internationally next year.

This new tier will be the building block for the multinational company in attaining its target of 230 million to 260 million users for Disney+ in the next two years.

Hibbett offered better than anticipated guidance

Hibbett Inc. (NASDAQ: HIBB) gained 8% on Friday after reporting slightly better than anticipated earnings guidance overshadowing uninspiring Q4 2021 results and dovish full-year sales outlook.

The company had earnings per share of $1.25, missing analysts estimates of $1.35. Sales grew 1.7% but missed street expectations. Same-store comparable sales dropped 1.6% but were partially offset by a 1.8% increase in digital sales. For the year, analysts are calling for EPS of $9.85 shy of the midpoint of the company’s range of $9.9.

Sony and Honda Motors collaborate to develop electric vehicles 

Sony Group (OTCMKTS: SNEJF) and Honda Motors (OTCMKTS: HNDAF) have announced a collaboration to create electric vehicles. The partnership brings together two big Japanese companies that have been adamant about leveraging some of the leading technology trends in recent times.

The companies announced that they are creating a JV to sell EVs by 2025. Sony was a leader in portable devices but lagged in the smartphone sector, with Apple and Samsung leading. Similarly, Honda is not close to the likes of Tesla in the EV sector.