Top Stories Wednesday, Aug 23: Airbnb Versus New York Regulations, Netflix Adds New US Users After Password Crackdown, Facebook Marketplace Under Regulatory Fire For Alleged Sale Of Recalled Items - Advance Auto Parts (NYSE:AAP), Airbnb (NASDAQ:ABNB)

Wall Street Journal

Airbnb Versus New York: What's Going On?

New York City witnesses a significant decline in Airbnb Inc ABNB listings as the city tightens its grip on short-term rental regulations.
The strict enforcement of the city's guidelines, set to begin on September 5, has prompted many hosts to pull their listings in anticipation.
Hosts are now rushing to comply with the new mandates before the deadline, while Airbnb itself has blocked future bookings for dates post this timeline.

Meta Platforms Inc META faces intense scrutiny from bipartisan lawmakers for its alleged leniency on its digital marketplace, Facebook Marketplace, where users reportedly sell recalled items, including products linked to infant fatalities.
Members from Congress have communicated their concerns directly to Meta Platforms CEO Mark Zuckerberg, highlighting the potential public safety hazards posed by such listings.

Benzinga

Mallinckrodt Plc MNK, a venerable pharmaceutical company with a history spanning almost 150 years, is poised to file for bankruptcy for the second time in less than three years.
This decision comes as the company grapples with the ramifications of business declines and the challenge of meeting payments tied to billions in dollars of settlement to address a barrage of lawsuits alleging its role in fueling the U.S. opioid epidemic.

Apellis Pharmaceuticals Inc APLS released a comprehensive update regarding its Syfovre (pegcetacoplan injection) treatment for geographic atrophy (GA) secondary to age-related macular degeneration (AMD).
The update covers crucial information about injection kits and the occurrence of rare events of retinal vasculitis associated with the treatment.

Bloomberg

Netflix Inc NFLX seems to have managed a bounce back in the U.S., according to fresh findings by Antenna. Their research indicates that the entertainment giant's initiatives to curb password sharing and introduce an ad-supported plan might work wonders for its growth.
Antenna noted an impressive inflow of about 2.6 million Americans registering for Netflix recently.

AT&T Inc T forayed into the wireless home internet space with its new offering, Internet Air, positioning itself in a lucrative sector that rivals are already exploiting by deploying high-capacity 5G networks.
Starting at a monthly charge of $55, Internet Air will be accessible in select regions of 16 cities, such as Los Angeles, Philadelphia, and Cincinnati.

Reuters

Novo Nordisk A/S NVO has reportedly enlisted the services of Thermo Fisher Scientific Inc TMO as its second contract manufacturer for its highly sought-after weight-loss drug, Wegovy.
Thermo Fisher has been tasked with filling Wegovy injection pens at its production facility in Greenville, North Carolina.

A public commission in Denmark has recommended the cessation of subsidies for GLP-1 drugs, including Ozempic and similar medications, as a primary treatment for type 2 diabetes.
Novo Nordisk A/S NVO has seen a surge in demand for Ozempic and its sister drug Wegovy, a weight-loss medication based on similar ingredients.
The proposal, which aims to prioritize cost-effective alternatives as the initial therapeutic option, was released on Tuesday and is open for public review and commentary until October 8.

Earnings

Peloton Interactive Inc (NASDAQ: PTON) shares are down following its mixed Q4 results.
PTON reported a fourth-quarter FY23 sales decline of 5% year-on-year to $642.1 million, beating the consensus of $639.9 million. EPS loss was $(0.68), missing the consensus loss of $(0.38).
Peloton sees Q1 FY24 revenue of $580 million - $600 million, representing a decline of 4% Y/Y and 8% Q/Q at the midpoint vs. consensus of $655.9 million.

Analog Devices Inc ADI reported a third-quarter FY23 revenue decline of 1% year-on-year to $3.08 billion, missing the consensus of $3.10 billion. Adjusted EPS of $2.49 missed the consensus of $2.52.
Analog Devices sees Q4 revenue of $2.70 billion, +/- $100 million, vs. the consensus of $3.00 billion.

Grab Holdings Limited GRAB reported second-quarter FY23 revenue growth of 77% year-on-year (81% Y/Y on a constant currency basis) to $567.0 million, beating the consensus of $546.1 million. EPS loss of $(0.03) beat the consensus loss of $(0.05).
Grab reiterated FY23 revenue of $2.20 billion - $2.30 billion, up by 54% - 60% Y/Y vs. consensus $2.29 billion. It now expects adjusted EBITDA breakeven in Q3 vs. Q4.

Abercrombie & Fitch Company ANF reported second-quarter FY23 sales growth of 16% year-on-year to $935.35 million, beating the consensus of $842.38 million, driven by brand strength. Adjusted EPS of $1.10 beat the consensus of $0.17.
ANF expects Q3 net sales growth to be up low double-digits. Operating margin is expected to be in the range of 8%-10%.

Advance Auto Parts Inc AAP reported second-quarter FY23 sales growth of 0.8% year-on-year to $2.69 billion, marginally beating the analyst consensus of $2.66 billion, primarily driven by new store openings. EPS of $1.43 missed the analyst consensus of $1.66.
The company lowered the FY23 EPS outlook to $4.50-$5.10 versus the $5.85 estimate (Prior View: $6.00-$6.50).

Foot Locker Inc FL reported a second-quarter FY23 sales decline of 9.9% year-on-year to $1.86 billion, missing the analyst consensus of $1.88 billion.
Adjusted EPS of $0.04 was in line with the analyst consensus.
Foot Locker cuts FY23 comparable sales guidance from down 7.5%-9% to down 9%-10%.

Kohl's Corp KSS reported a second-quarter FY23 revenue decline of 4.8% year-on-year to $3.90 billion, beating the analyst consensus of $3.69 billion. Comparable sales decreased 5%.
EPS of $0.52 beat the consensus estimate of $0.22.
Outlook: Kohl's reaffirmed FY23 sales decline of 2% - 4%. It expects FY23 EPS, excluding any non-recurring charges, of $2.10 - $2.70 versus the Street view of $2.38.

Overview Rating:

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