Feb 8, 2019

Wall Street trend: Cutting back details from earnings reports

Illustration: Aïda Amer/Axios

Previously obliged to provide detailed breakouts, a growing number of companies are cutting back how much information they give investors right as concerns are growing about an economic slowdown and a potential earnings recession.

Why it matters: The companies pulling back are the same ones that drove the market to record highs — at a time when there are questions about how much longer the bull market can run.

  • "It's a source of frustration," Bill Smead, founder of Smead Capital Management, tells Axios. "There's more of what [companies] don't say. This is typical of what would happen in the late stages of a bull market."

What's going on: The information pullback is happening across the biggest names in tech.

  • Twitter said it would no longer release numbers on its monthly active user base, only its "monetizable daily active users" (or the users who see ads).
  • Facebook said it hopes a combined "family" metric tracking the suite of its apps will have more of a "primary role" as compared to the specific user numbers for Instagram or WhatsApp.
  • Last year, Apple said it would no longer report how many iPhones it sells per quarter, instead reporting the overall active installed base of iPhone users.

Outside of tech, Ford Motor said it would report sales figures quarterly, instead of monthly, following General Motors' announcement last year to report less frequently.

But why? Companies say the old metrics are less appropriate as their businesses evolve.

  • "A unit of sale is less relevant for us today than it was in the past given the breadth of our portfolio and the wider sales price dispersion within any given product line," Apple CFO Luca Maestri said on the company's earnings call in November.
  • Facebook CFO David Wehner said its new "Family" metric would "better reflect the size of our community and the fact that many people are using more than one of our services."

Market strategists aren't buying it.

  • Analysts at research firm MKM Partners wrote in a note that Facebook's move could be interpreted as execs "preparing to remove transparency as an engagement problem on the core service is set to worsen."

Go deeper

Making sense of the UN's climate conference coronavirus delay

Illustration: Sarah Grillo/Axios

The scuttling of November's pivotal UN climate conference is the starkest sign yet of how coronavirus is throwing a wrench into efforts to combat global warming. But like the wider relationship between the coronavirus and climate initiatives, the ramifications are ... complicated.

Driving the news: UN officials announced Wednesday that the annual summit to be held in Glasgow, Scotland, is postponed until some unknown time next year.

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 9 a.m. ET: 952,171 — Total deaths: 48,320 — Total recoveries: 202,541Map.
  2. U.S.: Total confirmed cases as of 9 a.m. ET: 216,722 — Total deaths: 5,137 — Total recoveries: 8,672Map.
  3. Stimulus updates: Social Security recipients won't need to file a tax return to receive their checks.
  4. Jobs update: 6.6 million people filed for unemployment last week, a staggering number that eclipses the record set on March 26.
  5. Health updates: The Trump administration won't reopen enrollment for ACA marketplaces this year.
  6. National updates: The Grand Canyon closed after a resident tested positive for coronavirus.
  7. World update: Israeli Prime Minister Benjamin Netanyahu re-entered self-quarantine after his health minister tested positive for coronavirus.
  8. What should I do? Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk.
  9. Other resources: CDC on how to avoid the virus, what to do if you get it.

Subscribe to Mike Allen's Axios AM to follow our coronavirus coverage each morning from your inbox.

The weirdest NBA draft ever

Table: Axios Visuals

The 2020 NBA draft was already shaping up to be the weirdest draft in years, and now that the coronavirus pandemic has disrupted the sports world, it could be the weirdest draft ever.

Why it matters: While most drafts have a clear hierarchy by the time April rolls around, this draft does not. There's no reliable No. 1 pick, almost every top-10 prospect has a glaring weakness and the global sports hiatus has shrouded the whole class in mystery.

Go deeperArrow45 mins ago - Sports