The end of an earnings season can be a great time to assess how companies are handling the current business environment and discover new stocks. Let’s have a look at how Skillz (NYSE:SKLZ) and the rest of the consumer internet stocks fared in Q2.
The ways people shop, transport, communicate, learn and play are undergoing a tremendous, technology-enabled change. Consumer internet companies are playing a key role in lives being transformed, simplified and made more accessible.
The 34 consumer internet stocks we track reported a slower Q2; on average, revenues beat analyst consensus estimates by 0.92%, while on average next quarter revenue guidance was 0.04% under consensus. There has been a stampede out of high valuation technology stocks as raising interest rates encourage investors to value profits over growth again and consumer internet stocks have not been spared, with share prices down 10.8% since the previous earnings results, on average.
Taking a new twist at video gaming, Skillz (NYSE:SKLZ) offers developers a platform to create and distribute mobile games where players can pay fees to compete for cash prizes.
Skillz reported revenues of $40.2 million, down 45.2% year on year, missing analyst expectations by 5.66%. It was a weak quarter for the company, with a decline in its user base and slow revenue growth.
“The second quarter was a productive period for Skillz marked by further progress against our strategic initiatives with a focus on developing an array of new product features that will increase consumer engagement and retention. Additionally, we've focused on optimizing our user acquisition strategy to enhance developer success and attract new content onto the platform,” said Andrew Paradise, Skillz’ CEO.
The stock is down 40.3% since the results and currently trades at $6.46.Is now the time to buy Skillz? Read our full report on Skillz here.
Best Q2: MercadoLibre (NASDAQ:MELI)
Originally started as an online auction platform, MercadoLibre (NASDAQ:MELI) today is a one-stop e-commerce marketplace in Latin America.
MercadoLibre reported revenues of $3.42 billion, up 31.5% year on year, beating analyst expectations by 4.4%. It was a very strong quarter for the company, with impressive growth in its user base and a decent beat of analysts' revenue estimates.
MercadoLibre scored the fastest revenue growth among its peers. The company reported 109 million daily active users, up 29.8% year on year. The stock is up 20.5% since the results and currently trades at $1,404.
Is now the time to buy MercadoLibre? Access our full analysis of the earnings results here, it's free.
Created by IAC’s mergers of Angie’s List and HomeAdvisor, ANGI (NASDAQ: ANGI) operates the largest online marketplace for home services in the US.
Angi reported revenues of $375.1 million, down 27.3% year on year, missing analyst expectations by 6.79%. It was a weak quarter for the company, with declining users and revenue.
The stock is down 39.7% since the results and currently trades at $2.34.
Founded by Joe Gebbia and Brian Chesky by renting out a blowup bed on the floor of their San Francisco apartment, Airbnb (NASDAQ: ABNB) is the world’s largest online marketplace for lodging, primarily homestays.
Airbnb reported revenues of $2.48 billion, up 18.1% year on year, beating analyst expectations by 2.69%. It was a mixed quarter for the company, with Nights and Experiences Booked, a key volume measure for Airbnb, missing expectations, although Gross Bookings was in line with expectations. However, revenue came in ahead of expectations, as did revenue guidance for the next quarter.
The company reported 115.1 million nights booked, up 11% year on year. The stock is up 3.03% since the results and currently trades at $145.15.
Famously founded by Mark Zuckerberg in his Harvard dorm, Meta Platforms (NASDAQ: META ) operates a collection of the largest social networks in the world - Facebook, Instagram, WhatsApp, and Messenger, along with its metaverse focused Facebook Reality Labs.
Meta reported revenues of $32 billion, up 11% year on year, beating analyst expectations by 3.12%. It was a strong quarter for the company, with optimistic revenue guidance for the next quarter. The company also beat free cash flow by a meaningful amount and lowered its expected capex spend for the full year, which is an additional tailwind to forward free cash flow.
The company reported 3.88 billion monthly active users, up 6.3% year on year. The stock is up 2.41% since the results and currently trades at $305.97.
The author has no position in any of the stocks mentioned