Plus, the FDA authorized COVID-19 booster shots for people with weakened immune systems, Disney delivered an earnings beat, and space company Momentus debuted on the Nasdaq.
Stocks were slightly higher at the open on Friday with the Dow adding 52 points, or 0.1%. The S&P 500 and Nasdaq both rose less than 0.1%.
Virgin Galactic shares are down nearly 3% at the time of writing after founder Sir Richard Branson sold a stake worth $300 million. Branson sold 10.4 million shares ranging from $25.75 to $34.39 per share, according to an SEC filing. “The Virgin Group continues to be the largest single shareholder in Virgin Galactic,” Branson’s parent company said in a statement, adding that it “intends to use the net proceeds from this sale to support its portfolio of global leisure, holiday and travel businesses that continue to be affected by the impact of the COVID-19 pandemic, in addition to supporting the development and growth of new and existing businesses.” This stake sale is Branson’s third since taking Virgin Galactic public through a SPAC in 2019.
The FDA authorized COVID-19 vaccine booster shots for people with weakened immune systems, including organ transplant recipients and people who are similarly immunocompromised. “The country has entered yet another wave of the COVID-19 pandemic, and the FDA is especially cognizant that immunocompromised people are particularly at risk for severe disease. After a thorough review of the available data, the FDA determined that this small, vulnerable group may benefit from a third dose of the Pfizer–BioNTech or Moderna Vaccines,” Acting FDA Commissioner Janet Woodcock, M.D., said in a statement. “Today’s action allows doctors to boost immunity in certain immunocompromised individuals who need extra protection from COVID-19. As we’ve previously stated, other individuals who are fully vaccinated are adequately protected and do not need an additional dose of COVID-19 vaccine at this time. The FDA is actively engaged in a science-based, rigorous process with our federal partners to consider whether an additional dose may be needed in the future.”
Disney shares are up 3% this morning following its fiscal third quarter earnings beat announced after the bell on Thursday. Disney reported earnings per share of $0.80 on revenue of $17.02 billion, versus expectations for earnings per share of $0.55 on revenue of $16.76 billion. “We ended the third quarter in a strong position, and are pleased with the Company’s trajectory as we grow our businesses amidst the ongoing challenges of the pandemic,” Disney CEO Bob Chapek said in the earnings release. “We continue to introduce exciting new experiences at our parks and resorts worldwide, along with new guest-centric services, and our direct-to-consumer business is performing very well, with a total of nearly 174 million subscriptions across Disney+, ESPN+ and Hulu at the end of the quarter, and a host of new content coming to the platforms.”
In other earnings news, Airbnb delivered a revenue beat for its fiscal second quarter, posting revenue of $1.34 billion versus estimates for revenue of $1.26 billion. While the company reported 83.1 million nights and experiences booked in the quarter, up 29% quarter-over-quarter, Airbnb warned for volatility due to the COVID-19 delta variant, which the company expects will impact travel behavior. “As we exit Q2 and come into Q3, we have a combination of fewer bookings for the fall, just given the nature of some of the seasonality, and any kind of impact potentially on COVID concerns,” Airbnb CFO Dave Stephenson said on a call with analysts.
And space company Momentus debuted on the Nasdaq today following a tumultuous SPAC merger with Stable Road Capital that saw its missions delayed to at least mid-2022, and the departure of its Russian co-founders on national security concerns. Former CEO Mikhail Kokorich and Lev Khasis sold their stakes and left the company in exchange for “roughly $40 million,” according to new CEO John Rood. Following that, Momentus’ valuation was cut in half, and then last month, the firm and Stable Road settled charges from the SEC that the companies had misled investors and falsified results from a 2019 prototype spacecraft test, resulting in around $8 million in civiil penalties. Rood has described Momentus as an “early stage technology company,” and that it is testing a new variation of its water-based plasma engines, dubbed the Microwave Electrothermal Thruster. “In terms of value for investors, I think we’re well positioned to meet some big market trends,” Rood said. “There is a need for what we provide.”
Stocks We’re Watching
Xenetic Biosciences Inc (NASDAQ: XBIO): Xenetic Biosciences today reported second quarter earnings results and provided a corporate update. “Over the course of the second quarter, we continued to execute our innovative and differentiated XCART program, and the technical progress we’ve accomplished brings us closer to the critical milestone of conducting IND-enabling studies in the United States. In light of that progress, we are taking important steps to validate the key workflow and manufacturing components that we believe will maximize the XCART opportunity,” CEO Jeffrey Eisenberg said in the earnings release. “Additionally, with our recently completed $12.5 million private placement and the royalty growth we have seen through our PolyXen license agreement, I believe we are in a strong position moving forward to maintain optionality and execute on advancing our development program.”