Friday, January 21News That Matters

Tag: Company Reports

Netflix Stock Drops After Streaming Giant Predicts Subscriber Slowdown

Netflix Stock Drops After Streaming Giant Predicts Subscriber Slowdown

Business
Netflix added 8.3 million subscribers in the fourth quarter, raising its worldwide subscriber base to 222 million, but the company said on Thursday that it expected growth to slow in the opening months of 2022.That news, in the company’s earnings release, prompted the stock to drop nearly 20 percent in after-hours trading. For the first quarter of this year, Netflix forecast an additional 2.5 million subscribers, down from the four million it added during the same quarter of 2021. That would be one of the streaming giant’s slowest opening quarters in years.The number of subscribers added in the fourth quarter was slightly off the 8.5 million that Netflix had forecast, but the 1.2 million added from the United States and Canada region reflected its strongest quarter there since the beginnin...

Why Tesla Soared as Other Automakers Struggled to Make Cars

Technology
For much of last year, established automakers like General Motors and Ford Motor operated in a different reality from Tesla, the electric car company.G.M. and Ford closed one factory after another — sometimes for months on end — because of a shortage of computer chips, leaving dealer lots bare and sending car prices zooming. Yet Tesla racked up record sales quarter after quarter and ended the year having sold nearly twice as many vehicles as it did in 2020 unhindered by an industrywide crisis.Tesla’s ability to conjure up critical components has a greater significance than one year’s car sales. It suggests that the company, and possibly other young electric car businesses, could threaten the dominance of giants like Volkswagen and G.M. sooner and more forcefully than most industry executiv...
Toyota Topped G.M. in U.S. Car Sales in 2021

Toyota Topped G.M. in U.S. Car Sales in 2021

Business
Toyota Motor unseated General Motors as the top-selling automaker in the United States last year, becoming the first manufacturer based outside the country to achieve that feat in the industry’s nearly 120-year history.That milestone underlines the changes shaking automakers, which face strong competition and external forces as they move into electric vehicles. And it came in a tumultuous and strange year in which automakers contended with an accelerating shift to electric vehicles and struggled with profound manufacturing challenges. New car sales have been damped by a severe shortage of computer chips that forced automakers to idle plants even though demand for cars has been incredibly robust.G.M., Ford Motor and Stellantis, the automaker created by the merger of Fiat Chrysler and Peuge...

Tesla Reports 87% Increase in 2021 Deliveries

Technology
Tesla reported Sunday that it delivered 936,000 cars in 2021, an 87 percent increase from the year before, despite the computer chip shortage that has disrupted auto production around the world.In the fourth quarter alone, the company delivered more than 308,000 vehicles, a 71 percent increase from the quarter a year earlier. The overwhelming share of the deliveries were of the Model 3 sedan and the Model Y hatchback.Tesla does not break out its deliveries by country. Much of its recent growth has been propelled by sales in Europe and China.The jump in deliveries capped a momentous year in which Tesla saw its stock and profits soar. It has also worked to open factories near Austin, Tex., and Berlin, in Germany, in hopes of sustaining its rapid growth.In October, Tesla’s market value for th...
Berkshire Hathaway’s Profit Fell in the Third Quarter

Berkshire Hathaway’s Profit Fell in the Third Quarter

Business
Berkshire Hathaway, the conglomerate run by the billionaire investor Warren E. Buffett, on Saturday reported a sharp decrease in earnings in the third quarter, reflecting the turbulent financial markets as well as a slowdown in the U.S. economic recovery with a spike in Covid-19 cases. Profits fell by a third to $10 billion, down from $30 billion in the same three months of 2020, when the economy was still in the process of reopening from pandemic shutdowns.Berkshire’s bottom line was dragged down by its giant investment portfolio, which fell 85 percent from a year ago. But profits at Berkshire’s operating businesses, which include a railroad as well as a variety of manufacturing and retail businesses that mirror the broader U.S. economy, also disappointed. Income there rose just 18 percen...
Saudi Aramco Profits Nearly Triple as Oil Prices Rise

Saudi Aramco Profits Nearly Triple as Oil Prices Rise

Business
Saudi Aramco, the world’s largest oil company, said Sunday that its profits for the third quarter nearly tripled compared with the period a year earlier, as demand for the fuel recovers from the pandemic and prices soar.Aramco, Saudi Arabia’s national oil company, said that net income was $30.4 billion for the July-to-September period, up from $11.8 billion a year ago when demand for oil collapsed and prices tumbled. The huge profits are largely a reflection of rapid increases in oil prices. Aramco’s statement did not give full financial details, but it is likely to have received about $70 a barrel on average for its oil in the quarter compared with $43.60 a barrel in the same period in 2020.Saudi Arabia and other oil-producing countries cut output sharply in response to the fall in demand...
Amazon Sales Growth Slows and Costs Rise

Amazon Sales Growth Slows and Costs Rise

Technology
Amazon on Thursday posted its slowest sales growth in almost seven years as the pandemic-fueled surge in online shopping eased.The company’s profit shrank, driven in part by higher labor costs and more spending on new warehouses and other logistics infrastructure meant to speed delivery times.Amazon told investors to expect sales growth and profit to continue contracting in current quarter, which includes the holiday shopping season.The company said sales in the three months ending in September hit $110.8 billion, up 15 percent from the same period a year earlier. It made $3.2 billion in profit, about half as much as last year. The results fell short of investor expectations, and shares of Amazon’s stock were down more than 4 percent in aftermarket trading.In a statement, Amazon’s chief ex...

General Motors’ Third-Quarter Profit Hit Hard by Chip Shortage

Business
Two big Detroit automakers said Wednesday that the worldwide shortage of computer chips had weighed on their third-quarter earnings, but there were signs that the worst of the disruption was behind them.Of the two, Ford Motor fared better. Its revenue fell about 5 percent from a year earlier, to $35.7 billion, while General Motors’ revenue declined 25 percent, to $26.8 billion.“The quarter was challenging due to continuing semiconductor pressures,” G.M.’s chief executive, Mary T. Barra, said in a letter to shareholders.A statement from Ford emphasized a brightening outlook. “Semiconductor availability remains a challenge, but markedly improved from the second quarter,” it said.Ford investors were also upbeat. The company’s shares rose 8 percent after Ford’s announcement, which came after t...

Facebook Profits Jump 17 Percent

Technology
Facebook said on Monday that revenue rose 35 percent to $29 billion in the three months ending in September compared with the same period last year, while profit rose 17 percent to $9.2 billion, a sign of the social network’s financial strength as it faces a public relations crisis over troubling disclosures made by a former employee.Advertising revenue, which is responsible for the vast majority of Facebook’s income, rose 33 percent to $28.3 billion. “Other” revenue, which consists largely of sales of Facebook’s virtual-reality Oculus hardware, rose 195 percent to $734 million.Some 3.6 billion people now use one of Facebook’s apps every month, up 12 percent from a year earlier.“We made good progress this quarter and our community continues to grow,” said Mark Zuckerberg, Facebook’s founde...

Twitter’s Revenue Rises 37 Percent in the Third Quarter

Technology
Twitter said on Tuesday that its revenue for the third quarter rose 37 percent from a year ago to $1.28 billion, adding that it had largely sidestepped the effects from the privacy changes that Apple enacted, which have hurt mobile advertising.But the social media company swung to a loss of $537 million in the quarter from a profit of $29 million a year earlier, after it paid $809.5 million to settle a 2016 shareholder lawsuit that accused it of misleading investors about its user metrics.In a letter to shareholders, Twitter said that the fallout from Apple’s changes on its business were less severe than for other companies. This year, Apple released App Tracking Transparency, a pop-up window in iPhone apps that gives people the choice to not be tracked across apps and websites. The move h...