Late last week, 4 and 5 November, a lot of interesting things happened on the stock market: one of the pharmaceutical companies has developed an effective cure for coronavirus, tourism companies reported good sales, and some of last year's beneficiaries disappointed investors.
Pfizer has developed a pill for COVID-19
Pfizer Announces Successful Test 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 illness. Pfizer expects, that the regulator will approve the 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 said, that the drug reduces the risk of hospitalization or death by 50%. When Pfizer Announced a Better 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. The company raised its vaccine sales forecast from $ 33.5 billion to $ 36 billion.
Moderna did not live up to expectations
Another developer of the COVID-19 vaccine, Modern, reported quarterly revenue below analysts' expectations: 5 against $ 6.2 billion. The company lowered its 2021 vaccine sales forecast from 20 up to 15-18 billion dollars. Moderna stated, which will postpone some 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 has 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 significantly exceed the level of 2020.
Travel company Expedia also published a strong report. Compared to last year, the company's revenue doubled and grew to $ 3 billion. Airbnb and Expedia Increased On Friday 13 and 16%.
After such reports and with the hope for a Pfizer drug, the papers of many travel-related companies have also grown.: 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, what analysts expected, - $ 376 million. Revenue increased by 6%, up to 805 million. For comparison: a year ago, the company's sales increased 230%. Sales of exercise equipment, such as bicycles and treadmills, fell on 17%, up to $ 501 million. Workout subscriptions increased by 94%, up to $ 304 million.
Last year, during the quarantine, the demand for Peloton services grew strongly.. Now people have started returning to regular gyms.. So, according to the company, average number of workouts, performed by Peloton subscribers in a month, fell from 21 to 17. And website and store traffic 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 has a bad effect on 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.