As we reflect back on the just completed Q3 consumer internet sector earnings season, we dig into the relative performance of 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 17 consumer internet stocks we track reported a slower Q3; on average, revenues beat analyst consensus estimates by 1.41%, while on average next quarter revenue guidance was 3.9% under consensus. Tech stocks have been under pressure as inflation makes their long-dated profits less valuable, but consumer internet stocks held their ground better than others, with the share prices up 9.9% 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 $2.84 billion, down 9% year on year, beating analyst expectations by 1.07%. It was a weak quarter for the company, with a declining number of users and revenue.
“We’re continuing the work we set out last quarter to control the controllables and orienting Wayfair in this environment around three key principles: driving cost efficiency, nailing the basics, and earning customer and supplier loyalty every day. We are all focused on taking the steps needed to reach adjusted EBITDA profitability and cash flow neutrality in short order,” said Niraj Shah, CEO, co-founder and co-chairman, Wayfair.
The company reported 22.6 million active buyers, down 22.6% year on year. The stock is up 20.5% since the results and currently trades at $43.01.
Best Q3: Uber (NYSE:UBER)
Born out of a winter night thought: "What if you could request a ride from your phone?" Uber (NYSE: UBER) operates a global network of on demand services, most prominently ride hailing and food delivery, and freight.
Uber reported revenues of $8.34 billion, up 72.1% year on year, beating analyst expectations by 3.52%. It was a very strong quarter for the company, with exceptional revenue growth and a decent beat of analyst estimates.
Uber delivered the fastest revenue growth among its peers. The company reported 124 million paying users, up 13.7% year on year. The stock is up 10.4% since the results and currently trades at $29.37.
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Weakest Q3: Overstock (NASDAQ:OSTK)
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 $460.2 million, down 33.2% year on year, missing analyst expectations by 2.66%. It was a weak quarter for the company, with a declining number of users and revenue.
The company reported 5.8 million active buyers, down 33.3% year on year. The stock is down 20% since the results and currently trades at $20.49.
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 $27.7 billion, down 4.46% year on year, beating analyst expectations by 1.14%. It was a weak quarter for the company, with declining revenue and an underwhelming revenue guidance for the next quarter.
The company reported 3.71 billion monthly active users, up 3.63% year on year. The stock is up 5.29% since the results and currently trades at $136.74.
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 $2.88 billion, up 28.9% year on year, beating analyst expectations by 1.26%. It was a mixed quarter for the company, with growing number of users but an underwhelming revenue guidance for the next quarter.
The company reported 99.7 million nights booked, up 25% year on year. The stock is down 8.12% since the results and currently trades at $100.19.
The author has no position in any of the stocks mentioned