Scholastic Slumps On Book Weakness

One of the perplexing things about markets is that sometimes headlines don’t necessarily match the reaction in markets. And that was certainly the case today in struggling media giant Warner Bros. Discovery. 📰

The Hollywood Reporter wrote an article boasting that Warner Bros became the first Hollywood conglomerate to turn a full-year streaming profit ($103 million).  

The China trade remains a controversial one, with bulls looking to nail an epic bottom and bears looking for the collapse of the country’s stock market (and economy). However, despite all the crazy headlines about economic data, regulators banning short selling, and a whole lot more, some stocks are trying to stabilize. 📰

Today’s example is eCommerce giant JD.com, which reported an earnings and revenue beat after a long string of disappointments. While growth remains well off its pandemic-era highs, investors are happy to see that the business is at least stabilizing and being forecasted properly by management.

Today’s action shows that BJ’s may have a branding problem in the retail investing community. Despite the company’s results topping expectations today, sentiment readings from are community are still weaker than you’d expect. 🤔 

BJ’s Wholesale Club revenues grew 8.70% YoY to $5.357 billion, with adjusted earnings of $1.11 per share. While earnings topped expectations, revenue was slightly below, with executives citing an uncertain macroeconomic environment as the primary driver.

Neobanks that came public during the pandemic at insane valuations and got crushed over the last few years are roaring back in the current environment. 🏦

Dave Inc. is a digital banking service primarily focusing on cash advances, working off tips and subscription fees rather than overdraft fees. That was a solid business in the ZIRP era of cheap money but faced a reckoning in a higher interest rate environment. 💸