Late last week, 4 And 5 november, a lot of interesting things happened in the stock market: one of the pharmaceutical companies has developed an effective cure for coronavirus, tourism companies report good sales, and some last year's beneficiaries disappointed investors.
Pfizer has developed a pill for COVID-19
Pfizer announces successful trial of new COVID-19 pill on Friday. According to research, the medicine reduces the likelihood of hospitalization or death by 89%, if you start treatment in the first days of the disease. Pfizer expects, that the regulator will approve a new drug in the near future. On the news, the shares of the pharmaceutical company added 11%.
Pfizer's development is the second effective coronavirus pill. Introduced the first month ago by Merck. The company stated, that the drug reduces the risk of hospitalization or death by 50%. When Pfizer announced a more effective drug, Merck shares fell by 10%.
Earlier, Pfizer reported quarterly revenue growth by 134%, up to $24.1 billion. Most of sales - 13 billion, or 54%, - fell on the vaccine against coronavirus. Excluding vaccine, revenue increased by 7% relative to last year. Pfizer also raised its 2021 sales forecast from 79 up to $ 81.5 billion. Vaccine sales forecast raised from $33.5 billion to $36 billion.
Moderna did not live up to expectations
Another COVID-19 Vaccine Developer, Modern, reported quarterly revenue below analysts' expectations: 5 vs. $6.2 billion. The company lowered its 2021 vaccine sales forecast from 20 up to 15-18 billion dollars. Moderna stated, which will postpone part of the sales until early next year due to disruptions in the international supply chain. After the report, the company's shares fell by 18%. The next day, after Pfizer press release, shares fell another 17%. In just two days, Moderna shares fell by 32%.
Airbnb set a record and is waiting for a visit
Service for finding short-term rentals Airbnb reports on record revenue and profit for the quarter. Revenue increased to $ 2.2 billion - by 36 And 67% for 2019 and 2020. Net income was $ 0.8 billion.
But the volume of bookings did not grow so much - by 29% compared to 2020. Compared to 2019, the volume even fell by 7%. Airbnb compensated for this with higher rental prices.. On average, prices increased by 33 And 15% for 2019 and 2020.
According to company forecasts, demand for rental housing will continue to recover in the next quarter. Airbnb expects, that the volume of bookings will grow to the level of 2019 and will significantly exceed the level of 2020.
Travel company Expedia also published a strong report. Compared to last year, the company's revenue doubled and rose to $3 billion. Airbnb and Expedia Increased On Friday 13 And 16%.
After such reports and with the hope of a Pfizer drug, the papers of many travel-related companies also rose.: air carriers American, United и Delta — на 6—8%, cruise operators Carnival and Royal Caribbean - by 8-9%.
Peloton spent on advertising and counts losses
Exercise equipment manufacturer Peloton plunges 35% after a disastrous quarterly report. Net loss turned out to be larger, than analysts expected, — 376 million dollars. Revenue increased by 6%, up to 805 million. For comparison: a year ago, the company's sales increased 230%. Sales of exercise equipment, e.g. bicycles and treadmills, fell on 17%, up to 501 million dollars. Workout subscriptions increased by 94%, up to 304 million dollars.
Last year, during the quarantine, the demand for Peloton services grew strongly.. Now people have begun to return to regular gyms.. So, according to the company, average number of workouts, performed by Peloton subscribers per month, fell from 21 to 17. And traffic on the website and in stores drops faster, than expected in the company.
Peloton operates in a competitive industry, therefore spends a lot on promoting their products. Compared to last year, advertising costs increased by 148% and made 35% from proceeds. At the same time, the company is reducing prices for popular models of simulators.. All this is bad for the profitability of an already unprofitable business.. To somehow cut costs, Peloton suspends hiring of new employees.
Due to falling demand, the company downgraded its FY2022 sales forecast from 5,4 up to 4.4-4.8 billion dollars.
