Fast Money Blog- 5/12/23
Here’s what happened on Wall Street this week:
On Monday, May 8th, PayPal Holdings Company (PYPL) released their Q1 2023 earnings with total revenue of $7.04 billion, a growth of 9% year-over-year.
TPV (total processing volume) for the quarter came in at $354.5 billion, up 10% year-over-year.
The company also processed 5.8 billion payment transactions, up 13% year-over-year.
In addition, in Q1 PayPal net income was up 56% year-over-year to $795 million.
PayPal is a fantastic growth stock. However if you are a long-term investor, you are going to have to be patient and wait for the stock price to appreciate in value.
On Wednesday, May 10th, the Consumer Price Index (CPI) showed that inflation slowed for a tenth straight month. Inflation is now at 4.9%, down from 5% in March and the 40-year high of 9.1% last June. This news proves that Federal Reserve’s interest rate increases are gradually bringing inflation down towards their 2% target.
Later in the day, The Walt Disney Company (DIS) released its Q2 2023 earnings results. The company reported quarterly top-line revenue of $21.8 billion, up 13% year-over-year.
As a Wealthy Investor here’s what you need to know:
The Parks & Experiences segment reported quarterly revenue of $7.7 billion, up 17% from last year.
The Direct-to-Consumer streaming segment took in quarterly revenue of $5.5 billion, an increase of 12% year-over-year.
While these results might look good, Disney is losing big time. The company reported a loss of 4 million Disney+ subscribers in the quarter, bringing its subscription total down to 157.8 million. Moreover, although down somewhat from last quarter’s $1.05 billion loss, this quarter still ended with an operating loss of $659 million, due to Disney +.
While CEO Bob Iger is working to get Disney on better financial footing, a lot more has to be done before Wall Street will impressed.
I expect Disney shares to remain range-bound over the next 3 years.
Stay Open! Stay Positive!
Tyrone Jackson, The Wealthy Investor