Friday Movers: GoPro Inc, Activision, Yelp, Wynn Resorts, and Square Inc

The markets are tumbling on Friday following a dismal report from the Labor Department, which said that companies added just 160,000 new jobs in April, less than the expectations of more than 200,000 jobs. Meanwhile, companies continue to post their quarterly earnings reports, which has led to some furious trading activity in several prominent companies today, including GoPro Inc (NASDAQ:GPRO), Square Inc (NYSE:SQ), Activision Blizzard, Inc. (NASDAQ:ATVI), Yelp Inc (NYSE:YELP), and Wynn Resorts, Limited (NASDAQ:WYNN). Let’s analyze the details of these companies’ latest earnings reports and see what hedge funds think about these companies.

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GoPro Inc (NASDAQ:GPRO) Reports Wider-Than-Expected Loss

GoPro Inc (NASDAQ:GPRO) reported an adjusted loss of $86.7 million, or $0.63 per share, missing analysts’ consensus estimate of a loss of $0.59 per share. However, revenue of $183.5 million beat estimates of $169 million, though it nonetheless represented a steep decline of nearly 50% from the $363.1 million in revenue a year earlier. For the full 2016 year, the action camera maker expects revenue in the range of $1.35 billion to $1.50 billion. During the company’s earnings call, CEO Nicholas Woodman said that the quarterly revenue exceeded the company’s guidance and that consumer demand for GoPro cameras remains “solid.” GoPro also announced that it will release its drone, Karma, in the upcoming holiday season. Previously, GoPro’s drone was slated to hit the market in the first half of this year. Shares of GoPro Inc (NASDAQ:GPRO) are more than 4% in the red today.

A total of 18 hedge funds in our system held stakes in GoPro Inc (NASDAQ:GPRO) at the end of last year. Philippe Laffont’s Coatue Management had a noticeable position in the company of more than 2.6 million shares on December 31.

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Square’s Losses Increase, Revenue Beats Estimates

Square Inc (NYSE:SQ) has plunged by more than 16% this morning after the company posted a loss of $0.29 for the first quarter, far worse than the expected loss of $0.09 per share. However, the financial services company, which headed by Twitter’s CEO Jack Dorsey, experienced a 51% increase in revenue to $379.3 million, beating analysts’ expectations of $343.6 million. Square’s income suffered during the quarter because of its surging operating expenses, which rose by 72% year-over-year. For the full year, Square now expects revenue in the range of $615 million to $635 million, higher than its previous guidance range of $600 million to $620 million.

As of the end of December, Chase Coleman’s Tiger Global Management LLC owned more than 6.9 million shares of Square Inc (NYSE:SQ). It was one of nine hedge funds in our database owning stakes in the company at that time.

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We will discuss Activision Blizzard, Yelp and Wynn Resorts on the next page.

Black Ops III Pushes Activision Blizzard to Big Quarter

Activision Blizzard, Inc. (NASDAQ:ATVI)’s stock has surged by more than 6% this morning after the company posted first quarter EPS of $0.23, sharply beating analysts’ estimates of $0.12. Revenue in the quarter came in at $908 million, easily beating the expected $812.12 million. Activision Blizzard’s Call of Duty: Black Ops III gave a huge boost to the company’s financial results in the quarter, being so coveted that about 85% of new buyers Sony’s PlayStation 4 gaming console during the quarter bought the Black Ops III bundle. The company also announced the new version of its Call of Duty franchise earlier this week, though the trailers reception on YouTube has been notably mixed. Revenue from the company’s digital business grew by 48% to $797 million, spurred by the company’s acquisition of King Digital last year. For the full year, the company expects EPS in the range of $1.78, slightly beneath the consensus estimate of $1.79. In a statement, Activision Blizzard’s CEO Bobby Kotick said that the company has strong business opportunities in the future and that the viewership of the company’s games like Call of Duty, Hearthstone, and OverWatch, could individually exceed the viewership of entire sports leagues like the NHL, NBA, and MLB.

Out of the collection of investors that we track, 53 of them had approximately $3 billion worth of long positions in Activision Blizzard, Inc. (NASDAQ:ATVI) at the end of last year. Clifford Fox‘s Columbus Circle Investors has ownership of more than 3.8 million shares of the company as of March 31.

Yelp’s Revenue Surprises

Shares of Yelp Inc (NYSE:YELP) have skyrocketed by more than 17% after the company reported first quarter revenue of $158.6 million, better than the expected $156 million. The online reviews company also posted adjusted earnings of $0.08 per share, beating the consensus estimate of $0.03 per share. Local revenue growth increased by 40% year-over-year to $138.1 million. For the full year, the company expects revenue of between $690 million and $702 million. In a statement, Yelp’s CEO Jeremy Stoppelman said that the company hit a major milestone in the quarter by surpassing 100 million cumulative reviews.

A total of 42 hedge funds in our database were shareholders of Yelp Inc (NYSE:YELP) at the end of 2015. As of March 31, Ken Fisher’s Fisher Asset Management had 380,865 shares of the company.

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Wynn Resorts Swings to Profit

Wynn Resorts, Limited (NASDAQ:WYNN) reversed its losses in the first quarter, reporting net income of $75.2 million compared to the loss of $44.6 million that it suffered a year earlier. The Las Vegas-based casino company posted EPS of $1.07, better than the $0.83 that analysts had expected. Revenue in the quarter came in at $997.7 million, narrowly missing estimates of $998.5 million, and lower than the $1.09 billion in revenue it pulled in during the first quarter of last year. Wynn Resorts, Limited (NASDAQ:WYNN) missed its revenue projections mainly because of its declining business in Macau, a semi-autonomous territory in China where gambling is legal. The company suffered a 13.8% year-over-year drop in its Macau revenue during the quarter. Wynn Resorts’ stock is nearly flat in trading today.

Murray Stahl’s Horizon Asset Management owned 157,309 shares of Wynn Resorts, Limited (NASDAQ:WYNN) as of March 31.

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Disclosure: None