Q2 Earnings Highlights: Booking (NASDAQ:BKNG) Vs The Rest Of The Consumer Internet Stocks
Wrapping up Q2 earnings, we look at the numbers and key takeaways for the consumer internet stocks, including Booking (NASDAQ:BKNG) 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 49 consumer internet stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 2.5% while next quarter’s revenue guidance was in line.
Big picture, the Federal Reserve has a dual mandate of inflation and employment. The former had been running hot throughout 2021 and 2022 but cooled towards the central bank's 2% target as of late. This prompted the Fed to cut its policy rate by 50bps (half a percent) in September 2024. Given recent employment data that suggests the US economy could be wobbling, the markets will be assessing whether this rate and future cuts (the Fed signaled more to come in 2024 and 2025) are the right moves at the right time or whether they're too little, too late for a macro that has already cooled.
Thankfully, consumer internet stocks have been resilient with share prices up 8.7% on average since the latest earnings results.
Booking (NASDAQ:BKNG)
Formerly known as The Priceline Group, Booking Holdings (NASDAQ:BKNG) is the world’s largest online travel agency.
Booking reported revenues of $5.86 billion, up 7.3% year on year. This print exceeded analysts’ expectations by 1.5%. Despite the top-line beat, it was still a mixed quarter for the company with a narrow beat of analysts’ booking estimates but slow revenue growth.
Interestingly, the stock is up 16.3% since reporting and currently trades at $4,232.
Is now the time to buy Booking? Access our full analysis of the earnings results here, it’s free.
Best Q2: EverQuote (NASDAQ:EVER)
Aiming to simplify a once complicated process, EverQuote (NASDAQ:EVER) is an online insurance marketplace where consumers can compare and purchase various types of insurance from different providers
EverQuote reported revenues of $117.1 million, up 72.3% year on year, outperforming analysts’ expectations by 13.9%. The business had an incredible quarter with optimistic revenue guidance for the next quarter and exceptional revenue growth.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 18.1% since reporting. It currently trades at $19.65.
Is now the time to buy EverQuote? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Skillz (NYSE:SKLZ)
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 $25.3 million, down 37% year on year, falling short of analysts’ expectations by 4.3%. It was a disappointing quarter as it posted a decline in its users and a miss of analysts’ user estimates.
Skillz delivered the weakest performance against analyst estimates and slowest revenue growth in the group. The company reported 122,000 monthly active users, down 37.8% year on year. As expected, the stock is down 15.3% since the results and currently trades at $5.36.
Read our full analysis of Skillz’s results here.
Wayfair (NYSE:W)
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 $3.12 billion, down 1.7% year on year. This result lagged analysts' expectations by 2%. It was a disappointing quarter as it also recorded a miss of analysts’ buyer estimates and slow revenue growth.
The company reported 22 million active buyers, up 0.9% year on year. The stock is up 4.5% since reporting and currently trades at $56.89.
Read our full, actionable report on Wayfair here, it’s free.
Sea (NYSE:SE)
Founded in 2009 and a publicly traded company since 2017, Sea (NYSE:SE) started as a gaming platform and has since expanded to offer a variety of services such as e-commerce, digital payments, and financial services across Southeast Asia.
Sea reported revenues of $3.96 billion, up 27.9% year on year. This print beat analysts’ expectations by 6.6%. It was an exceptional quarter as it also logged an impressive beat of analysts’ user estimates and strong growth in its users.
The company reported 52.5 million users, up 21.8% year on year. The stock is up 42.4% since reporting and currently trades at $95.33.
Read our full, actionable report on Sea here, it’s free.
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