Earnings results often give us a good indication of what direction the company will take in the months ahead. With Q2 now behind us, let’s have a look at Wayfair (NYSE:W) and its peers.
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 18 consumer internet stocks we track reported a slower Q2; on average, revenues were in line with analyst consensus estimates, while on average next quarter revenue guidance was 8.04% under consensus. Tech stocks have been hit the hardest as investors start to value profits over growth and consumer internet stocks have not been spared, with share prices down 11.7% since the previous earnings results, on average.
Launched in 2002 by founder Niraj Shah, Wayfair (NYSE: W) is a leading online retailer for mass market home goods in the US, UK, Canada, and Germany.
Wayfair reported revenues of $3.28 billion, down 14.9% year on year, beating analyst expectations by 3.01%. It was a weak quarter for the company, with declining number of users and a slow revenue growth.
“During a difficult macroeconomic environment, we remain squarely focused on our customers and our suppliers, and on making sure Wayfair is their preferred platform for the Home. We are tightly controlling our many levers and steering Wayfair in a financially responsible manner through this period,” said Niraj Shah, CEO, co-founder and co-chairman, Wayfair.
The company reported 23.6 million active customers, down 24.1% year on year. The stock is down 41.9% since the results and currently trades at $37.36.
Read our full report on Wayfair here, it's free.
Best Q2: Expedia (NASDAQ:EXPE)
Originally founded as a part of Microsoft, Expedia (NASDAQ: EXPE) is one of the world’s leading online travel agencies.
Expedia reported revenues of $3.18 billion, up 50.6% year on year, beating analyst expectations by 6.42%. It was a stunning quarter for the company, with an exceptional revenue growth and growing number of users.
The company reported 79.1 million nights booked, up 39.7% year on year. The stock is down 1.12% since the results and currently trades at $101.21.
Is now the time to buy Expedia? Access our full analysis of the earnings results here, it's free.
Originally launched as a website focusing on selling clearance sale electronics and home goods merchandise, Overstock (NASDAQ: OSTK) is a leading online retailer of home goods, primarily furniture.
Overstock reported revenues of $528.1 million, down 33.6% year on year, missing analyst expectations by 12%. It was a weak quarter for the company, with declining number of users and a slow revenue growth.
Overstock had the weakest performance against analyst estimates and slowest revenue growth in the group. The company reported 6.5 million active buyers, down 29.4% year on year. The stock is down 4.91% since the results and currently trades at $26.9.
Read our full analysis of Overstock's results here.
The RealReal (NASDAQ:REAL)
Founded by consignment store aficionado Julie Wainwright, The RealReal (NASDAQ: REAL) is an online marketplace for buying and selling secondhand luxury goods.
The RealReal reported revenues of $154.4 million, up 47.2% year on year, in line with analyst expectations. It was a slower quarter for the company, with an underwhelming revenue guidance for the full year and an underwhelming revenue guidance for the next quarter.
The RealReal scored the highest full year guidance raise among the peers. The company reported 889 thousand paying users, up 21.7% year on year. The stock is down 45.2% since the results and currently trades at $1.67.
Read our full, actionable report on The RealReal here, it's free.
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 $28.8 billion, down 0.88% year on year, missing analyst expectations by 0.44%. It was a weak quarter for the company, with a slow revenue growth and an underwhelming revenue guidance for the next quarter.
The company reported 3.65 billion monthly active users, up 3.98% year on year. The stock is down 17% since the results and currently trades at $140.41.
Read our full, actionable report on Meta here, it's free.
The author has no position in any of the stocks mentioned