Trip Advisor in free fall
Corporate balance sheets keep investors on their toes
May 8, 2024, 10:58 p.m
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The question of the first interest rate cuts fades into the background on the US stock exchanges; instead, investors turn their attention to various corporate balance sheets. TripAdvisor drops almost 29 percent due to high losses, and Uber is also going down. Instead, the documents from another driving service provider are required.
After a series of different corporate balance sheets, the US stock exchanges failed to find a common direction on Wednesday. The Dow Jones Index the standard values closed 0.4 percent higher at 39,056 points. The broader one S&P 500 remained unchanged at 5187 points and the index of the technology exchange Nasdaq fell 0.2 percent to 16,302 jobs.
“The market has now priced in the Fed’s most likely next steps for the rest of the year,” commented Dylan Kremer, chief investor at asset manager Certuity in Florida. “That’s why investors will now start to focus more on economic data and corporate balance sheets.” Surprisingly high tax burdens on the online travel portal TripAdvisor and weak bookings from the ride-sharing service Uber caused nervousness in the middle of the week. Positive surprises from Uber competitor Lyft and the online forum Reddit also limited the losses on the most important US indices.
The shares of TripAdvisor fell by 28.7 percent. The company reported a loss of $0.43 per share in the first few months of 2024. According to LSEG data, experts had expected a narrow profit on average. The reason is tax burdens, said TripAdvisor. Surprisingly high government taxes also caused the group a loss in the first quarter of 2023.
Above fell 5.7 percent. After bookings were disappointing at the start of the year, the forecast for the second quarter was also worse than expected. The rideshare service’s food delivery business in particular weakened.
Lyft and Reddit asked
The chip manufacturer’s papers also flew out of the depots Intel, which fell 2.2 percent. The USA has revoked some of the company’s export licenses for deliveries to a customer in China, Intel announced. This will have a negative impact on sales in the second quarter.
Tesla lost 1.7 percent. According to insiders, investigators from the US Securities and Exchange Commission (SEC) are also examining the question of whether it violated capital market regulations in their investigations into the electric car pioneer’s autopilot.
On the other hand, the papers from were in demand Lyft, which increased 7.1 percent. As the ride-hailing company announced, the key figures for the past first quarter were also above analysts’ estimates. CEO David Risher said the entire industry was benefiting from higher demand.
Investors also agreed Reddit a. Following an optimistic outlook for the second quarter, the stocks rose by a good four percent. The background is a booming advertising business and revenue from licensing content to specialists in the field of artificial intelligence (AI), it said.