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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.

Our research has shown that the best strategy is to follow hedge funds into their small-cap picks. This approach can allow monthly returns of nearly 95 basis points above the market, as we determined through extensive backtests covering the period between 1999 and 2012 (see the details here).

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.

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