📊 This Week in Visuals
Because spreadsheets are boring
Welcome to a special Saturday edition of How They Make Money.
Over 100,000 subscribers turn to us for business and investment insights.
In case you missed it:
A picture is worth a thousand words, especially for earnings reports.
Let's visualize the performance of 10 companies that reported their earnings this week. It’s an early sneak peek of the full report that will be released later this month.
Today at a glance:
💼 Berkshire: Cash Pile Grows.
🔍 Palantir: Riding the AI Wave.
🛖 Airbnb: Cautious Outlook.
🍄 Nintendo: Switch Successor.
👾 Roblox: Turning to Ads
🎮 Electronic Arts: Who needs FIFA?
🦉 Duolingo: High Expectations.
⚙️ Arm Holdings: Forecast Falls Short.
🪶 Robinhood: Crypto Surge.
💖 Match Group: Growth Slump.
1. 💼 Berkshire: Cash Pile Grows
Berkshire’s cash hoard reached a record $189 billion, leaving many wondering what Buffett's next move might be.
The Oracle of Omaha trimmed Berkshire's Apple stake by 13% (though it remains his largest holding) and completely exited his position in Paramount Global.
Operating earnings soared 40%, fueled by a resilient insurance business.
2. 🔍 Palantir: Riding the AI Wave
Palantir raised its 2024 revenue forecast by 1% to $2.68 billion, driven by surging demand for its Artificial Intelligence Platform (AIP). But it fell slightly short of Wall Street's lofty expectations.
The company's new AIP bootcamps fueled this growth, powering seven-figure deals and driving a 69% increase in US commercial customers year-over-year. This is welcome news for Palantir, which is eager to reduce its reliance on government contracts.
3. 🛖 Airbnb: Cautious Outlook.
Airbnb reported a strong Q1, with revenue jumping 18% to $2.14 billion, fueled by booming international bookings, particularly in Asia-Pacific and Latin America.
While profits soared to $264 million, the company's cautious Q2 forecast, citing currency fluctuations and the timing of Easter, sent shares tumbling.
Remember, Airbnb is a seasonal business. The company is betting on the summer travel season and major international events like the Olympics and the Euro Cap to boost growth in Q3.
4. 🍄 Nintendo: Switch Successor
Nintendo just finished its fiscal year 2024 at the end of March with operating profit rising 5% year-over-year to ¥529 billion, thanks to the success of The Legend of Zelda: Tears of the Kingdom.
The company confirmed that a Switch successor will be announced in the fiscal year ending March 2025, meaning no release until at least FY26.
Switch sales declined 13% in FY24 to less than 16 million units, and further declines are expected. Nintendo is betting on its strong IPs and the excitement for new hardware to maintain its position in the gaming market, but the transition period could be challenging.