GM and Robinhood shares slide, McDonald's pops on earnings beat

Yahoo Finance’s Ines Ferre reports on the day's trending tickers.

Video Transcript

JARED BLIKRE: But we want to get more on the markets here. And for that, we're going to bring in Yahoo Finance's Ines Ferre. And I know you've got your eye on a bunch of trending tickers. First is an earnings story, General Motors. What's behind the move, which happens to be down today?

INES FERRE: Yeah, that's right, Jared. Well General Motors is down about 3% despite the company beating on the top and the bottom line. In fact, there was quite a big beat for the bottom line with earnings per share coming in at $1.52 versus what the Street was expecting, a consensus of $0.97 a share. The company did boost its full-year earnings guidance.

Now, as far as commodity prices and logistics cost, those are increasing. And the company, though, saying that it is because of strong prices, it's able to offset some of those costs. Its adjusted operating margins dropped 400 basis points to 10.9%. That's because of plant shutdowns, because of chip shortages. And CEO Mary Barra giving a little bit of guidance about those chip shortages, saying that that shortage will linger into 2022. That we won't be in better shape until the second half of 2022.

This is still though, a story about the company going into the EV space, with the CEO saying that GM's production will be making-- about 20% of its production by the year 2025 will be electric vehicles. So certainly heading in that direction. But today, the stock under pressure.

- And Ines, after all that crypto enthusiasm in the first part of the year, Robin Hood tanking today, down double digits as crypto trading declines.

INES FERRE: Yeah, that's right. Well, Robinhood is missing on revenue that came in short of what the Street had been expecting. I'm just pulling up the chart right now. The stock is down 10%. It's below its IPO price of $38. Now the company had warned at the end of the second quarter that it would see some seasonal headwinds going into the second half of the year. So you could see lower revenue and also a slower pace of new accounts.

But as you mentioned, crypto trading plunging 76% from the prior quarter with crypto transaction revenue coming in at $51 million. Now it's still 10 times more than it was for the same quarter last year. But certainly, a slowdown from the second quarter. And the bottom line is that crypto is becoming increasingly important for Robinhood. The company announcing recently a new crypto wallet that's coming soon.

Much of the growth, though, with crypto transactions went from Q1 into Q2 with a huge popularity in Dogecoin. And this is very interesting because Vlad Tenev, the CEO of Robinhood, was asked about Doge and new accounts in that second quarter when they saw huge spike in crypto transactions. And he said that it was a meaningful portion of the new account, meaning Dogecoin. The reason why new accounts-- people were signing up.

So that goes to show you that those meme coins are really important as far as Shiba Inu, the meme token that customers are clamoring for. There's a petition on change.org. More than 300,00 signatures asking for that meme coin.

And Vlad Tenev was asked also during the conference call about adding new coins. He said, we hear you loud and clear. The customers want new coins. But the regulatory environment is really uncertain and evolving when it comes to new coins. And so they have to be careful about evaluating, adding on a new coin and making sure that it meets regulatory requirements.

JARED BLIKRE: Yeah, and when your P&L statement is leveraged to Dogecoin, you're going to have some volatility in your earnings there. But I want to turn our attention to Mickey D's, Golden arches. It looks like a nice beat and a raise quarter for them. What's inside their earnings statement here?

INES FERRE: Yeah, that's right. The stock popping up more than 2%. The results beating on the top and the bottom line for what Wall Street was expecting. Adjusted earnings per share coming in at $2.76 and revenue of $6.2 billion. The company raised its sales forecast. International sales saw a bounce back.

Despite higher menu prices, a 6% hike in those menu prices, people are still ordering. So they're still absorbing those costs. Now the CFO Kevin Ozan said that restaurant margins may moderate because of labor and commodity costs. But still, overall, expecting mid-40s percentage margins, overall.