Stocks moving after the closing bell: Roblox, Procter & Gamble, Rivian, Lucid, Nexstar Media
Yahoo Finance Live anchors Seana Smith and Dave Briggs highlight several tickers making moves in after-hours trading.
SEANA SMITH: All right, that closes out today's trading day. The Dow closing off just over 250 points. S&P and NASDAQ also in the red, with the NASDAQ off just about 1% in today's trading day. S&P off just about 7/10 of a percent. Let's take a look at some of the top movers of the day. Let's start with Roblox, shares closing lower this afternoon following a call from Morgan Stanley. They downgraded the stock to underweight with the firm expecting slower bookings growth in the second half of the year and little upside from advertising in the near term. We're looking at losses of just about 6 and 1/2%, so Roblox closing off its lows of the day.
But that good news that we have gotten in Roblox recently, the reacceleration that we're expected to see in the first half when it comes to bookings, Morgan Stanley making the case today that that has already been priced into the stock. Goldman maintaining Roblox at a sell. They lowered their price target to 19 from 24. So it looks like the second half of the year could be pretty challenging for Roblox.
DAVE BRIGGS: Yeah, at the open today, the stock was up 28% year to date. So Matthew [INAUDIBLE] really looking at it and saying that's pretty much peak. Not going to get a lot better than that coming off a holiday season, a December that they expected to be successful. Still, though, at this point, when you look at the analyst, 15 buys, 10 holds, 8 sells. So still some bullish thoughts on Roadblox-- on Roblox. You've got to think the gaming sector been pulling back and, as they believe, Activision Blizzard and Take-Two Interactive are the ones that they would bet on.
Let's talk Procter & Gamble. Those shares today, if we could put up the stock chart there, closing, yep, down a little over 2% after earnings prior to the bell, the company beat Street earnings expectations on the top and bottom line, but reported year over year declines in revenue and profit for the second quarter. They raised prices 10% in the quarter.
And largely, what they're saying is, well, demand dropped off. They raised them 9% the prior quarter. Question-- do you think this is a positive Fed story? If you're seeing a company that raised their prices that high, and demand dropped off, is that exactly what Jerome Powell wants to see?
SEANA SMITH: I think what needs to happen, right, in order for the Fed to reach some of their goals, so I guess if you want to take an optimistic view, looking at these results, which were disappointing, I guess this is what the Fed needs to see in order for us to continue to get inflation under control. But when it comes to Procter & Gamble, they're in a pretty tough spot. You mentioned that 10% price hike that we've gotten in the latest quarter. They're saying they are going to keep raising prices to help offset those higher costs in the first half of this year.
Beauty product prices increased by an average of 9%. Fabric and home care prices up 13%. We know China a big part of Procter & Gamble's business. They are optimistic about the reopening there. They do expect consumption to rebound, what they're saying in the mid-single digits. But of course, as you and I have talked about time and time again, the reopening there with the surge in cases, the timing of that reopening is pretty uncertain at this point. And that's something that Procter & Gamble is taking into account. They did, though, raise their sales forecast on those price hikes.
DAVE BRIGGS: They also improved their market share here in the US by, albeit a slight amount, they improved their market share 0.5% here in the US. Echoes what we said yesterday with staples names just getting hammered across the board yesterday. And basically all those same names-- Kraft Heinz, Campbell's Soup, Conagra, et cetera, et cetera-- essentially flat today.
All right, let's take a look at some of the big EV auto stocks, Rivian and Lucid. You can see Rivian down more than 4% on the day, both trending on the Yahoo Finance website today and taking a hit lower. A note out from Deutsche Bank predicting several companies could miss quarterly consensus estimates and slashing their Rivian price target from 43 down to 28.
So it's not just Tesla. Everyone talks about Tesla having lost 65% of their market cap last year. These other names and what-- really, when you look-- step back, these names blew first mover advantage. Rivian had it and specifically when it comes to pickups and SUVs.
And it may not have been their fault. It may have been the timing of COVID. It may have been the supply chains that, quite simply, broke down. But their chief advantage was first mover. And now you've got GM and Ford and everybody moving into that space, and their advantage squandered.
SEANA SMITH: Yeah, certainly is going to be a tough road here when you keep into account that the Fed is going to continue to raise rates. We heard from Elon Musk, CEO of Tesla, coming out time and time again, saying how that is-- how higher rates do hurt their company. He came out tweeting that Fed rate increases make cars more expensive for consumers, increasing difficulty level for automotive companies.
Rivian today hitting the lowest level that we have ever seen. Deutsche Bank lowering their price target on the stock. They're certainly seeing some further losses ahead. When you take a look at how far these stocks that have fallen--
DAVE BRIGGS: Ugh.
SEANA SMITH: --from their peak--
DAVE BRIGGS: Rivian!
SEANA SMITH: --off over 90%, both Rivian and Lucid peaking back in November 2021. They weren't public for that long before we certainly did see that peak. And that one-year chart that we have up on the screen right now, off just over 77%. So it's certainly going to be a tough road for this group, and just looking at the losses today, with Lucid off another 8.7%.
DAVE BRIGGS: Rivian at a market cap of $150 billion at their peak. They had no revenue. That, of course, was the problem. And now slide the decimal over. They're worth 14.5. All right, we're awaiting these Netflix earnings. We'll have them for you as soon as they break. But it's already been a busy day in the streaming space.
Saudi-backed start-up LIV Golf announcing a broadcast deal earlier with the CW. 75% of the CW is owned by Nexstar, which bought into the new golf league while everyone stayed away. And this is essentially a two-year deal. No money will they get from actually rights fees. This is basically an ad share, a revenue ad share. So it's not a great deal for LIV Golf. It's a great deal for the CW who doesn't have to buy these rights.
But it's been a pretty good start to the year before we get to Netflix for Warner Brothers Discovery, for Paramount, for Disney. There is some optimism in the space.
SEANA SMITH: Yeah, there certainly is a lot of optimism in this space for Warner Brothers Discovery. Goldman coming out earlier this month naming it its favorite media stock for 2023, and here's why. They're seeing the catalyst as the recent merger-- streaming merger milestones that they have reached. Also their upcoming streaming relaunch in the spring.
We certainly have seen significant gains in Warner Brothers Discovery since the start of the year and a number of upgrades for Netflix over the last several months. Jeffrey recently upgraded Netflix on its ad tier optimism. And Goldman Sachs boosting its estimates here as we get these earnings results from Netflix amid the weaker dollar. So maybe that could be a positive sign here, a positive move for Netflix ahead of these results.
DAVE BRIGGS: One last positive thing in the streaming industry--
SEANA SMITH: What's that?
DAVE BRIGGS: "Ted Lasso" finally teased.
SEANA SMITH: Your favorite.
DAVE BRIGGS: Good Lord, Apple, teasing it.
SEANA SMITH: We're counting down the time for that.
DAVE BRIGGS: Season 3 coming in the spring. We've been desperately waiting