Wednesday’s recap: Stocks dip on disappointing quarterly results, DoorDash to buy Wolt, China Evergrande faces bankruptcy
· Disney and Poshmark stocks dip on disappointing quarterly results
· Doordash to acquire Wolt for $8.1 billion in stock
· China Evergrande misses interest payment on US dollar-denominated bonds
Various equities in the US released their quarterly results resulting in mixed price movement. Some of the stocks dropped on disappointing results.
Disney’s Q4 results disappoints
Walt Disney Company (NYSE: DIS) shares lost 5% after hours after the company reported weak Q4 2021 income and revenue results that came shy of Wall Street forecasts. The company reported a net income of $159 million or $0.09 per share compared to a loss of $0.39 per share a year ago. Disney reported revenue of $18.53 billion, representing YoY growth of 26%.
Analysts had projected the company to report earnings of $0.52 per share on revenue of $18.8 billion. During the quarter, the company added 2.1 million Disney+ subscribers taking its total to 118.1 million.
Poshmark stock tanks on Q3 estimates miss
Another stock that dipped on weak results is Poshmark Inc. (NASDAQ: POSH) which was about 30% down following disappointing Q3 results. The company missed analysts’ revenue estimates by posting revenue of $79.7 million representing YoY growth of 16%. However the ecommerce retailer swung a profit with income of $8.13 million or $0.44 per share compared to a loss of 7.2 million or $0.09 per share a year ago. For the fourth quarter the company expects revenue of $82 million, lower than analysts’ forecast of $85 million with adjusted EBITDA of $8 million.
DoorDash expanding global presence with the acquisition of Wolt
DoorDash (NYSE: DASH) gained 15% after the company announced plans to acquire Wolt in a stock transaction of around $8.1 billion as it expands internationally. Wolt, which is a Finland-based platform, delivers groceries, food, and retail item. The platform currently has over 10 million users globally. DoorDash anticipates closing the acquisition in 2H 2022.
RingCentral to be the main partner of Mitel UCaaS
RingCentral Inc. (NYSE: RNG) shares jumped 25% after confirming that the company will be the exclusive Mitel UCaaS partner. The company will provide its global clients with secure and next-generation cloud communications and a mobile-first platform offering enhanced functionality. In addition, Mitel will continue supporting clients on the MiClouid Connect Platform, and RingCentral will provide an easy way to its MVP cloud communications platform.
China Evergrande could fall into bankruptcy after missing interest payments
Chinese property developer, China Evergrande Group (HKG: 3333), is staring at bankruptcy after failing to pay interest to foreign investors on three dollar-denominated bonds due Wednesday. Deutsche Marktscreening Agentur (DMSA) stated that the Chinese developer was expected to make interest payments of $148.13 million after the expiry of the 30-day grace period. However, Evergrande hasn’t made the payment to foreign investors, including DMSA.