(CROWNS) – Loser: Stocks attempt a lackluster comeback
Stocks extended a streak of choppy trading as markets try to recover from a sharp sell-off earlier this week.
Economic activity fell 1.4%, unexpectedly contracting in early 2022 for the first time in almost two years, as persistent supply chain imbalances, inflationary pressures and the war in Eastern Europe weighed on growth.
This is noise, not signal: the economy is not slipping into recession.
McDonald’s revenue beat estimates, buoyed by price increases and overseas same-store sales growth.
Winner: Facebook (Meta) soars 17% after results
Facebook parent company Meta soared 17% after the social media platform showed an increase in daily active users of 3%. CEO Mark Zuckerberg tried to reassure investors about the metaverse-related expenses.
Meta’s advertising revenue and profitability declined more than the normal seasonal decline in the first quarter.
Meta’s shares are down almost 50% so far this year, thanks to growing concerns that its ad business could suffer from Apple’s privacy crackdown.
But for the first time, Meta laid out a rough game plan during its earnings call for how it will try to revamp its struggling ad business.
Zuckerberg said Meta would reduce its spending on the metaverse, after the division lost another $2.9 billion in the first quarter.
Meta bought back $9.5 billion worth of stock in the first quarter amid a loss
Winner: Disney Promotes Avatar 2 Release Date to December 16
Disney stock has struggled recently, but let’s not forget they have Star Wars, Pixar, ESPN, Indiana Jones, Nemo, Toy Story, Marvel, and much more, including Avatar 2, 3, 4, and 5.
Disney released the first trailer for the Avatar sequel, called The Way of Water, and announced that it will hit theaters on December 16.
Some Avatar stats that don’t seem true, but are:
- The original 2009 film is the highest-grossing film in history.
- There are four sequels in total planned, with the final entry coming in 2028.
- Avatar 2 was originally supposed to be released in 2014 (true), but they couldn’t find enough blue paint (probably true).
I like Disney stock as it is grouped with Netflix, but I think they have better content and IP in the long run.