It was no surprise that hotels were among the “social distance losers” during the pandemic. When lockdowns went into effect, reservations were canceled, properties shuttered, and staff sent home. With uncertainty hanging in the air, hotel profitability took a massive hit, falling 34.3% in 2020 – the worst of any industry except for airlines, which fell 58.8%. [1]
However, since the spring of 2020, hotel stocks have rebounded sharply on investor optimism over a faster economic reopening. Shares of Wyndham Hotels & Resorts (NYSE:WH) increased 160%, for example, while Marriott International Inc.’s (NASDAQ:MAR) stock rose 100% since April 1, 2020. [2]
As recovery from the pandemic has accelerated in some markets, analysts have revised expectations for hotels upwards, particularly in China and the U.S. Analysts expect the industry’s recovery will be uneven, however, given lingering challenges stemming from the pandemic.
Reevaluate your investment research budget
By: Erin Gifford
Do you ever wonder if you’ve overpaid for a broker’s services? What if a misalignment in your spend versus consumption cost you an extra $75,000? Wouldn’t a budgeting tool be helpful in better understanding your month-to-month spend?
Hotel Stocks Now Valued Higher Than Before Covid-19
By: Visible Alpha Research & Innovation Lab
The hotel industry is facing headwinds caused by the Covid-19 pandemic, which brought leisure and business travel to a virtual standstill in the first half of 2020. Now, as countries begin lifting travel restrictions after some signs of controlling the virus, there is some optimism in the market that pent-up demand to travel might be underestimated. Nevertheless, as of now Wall Street analysts do not expect large hoteliers will see a full recovery in occupancy before 2022, according to Visible Alpha consensus.
Analysts Still Forecast Slow Recovery For Cruise Liners
By: Visible Alpha Research & Innovation Lab
The cruise industry was severely hurt by the novel coronavirus pandemic after multiple ships were quarantined at sea for extended periods of time, leading to a halt of new departures and cancelled bookings. While ships have been anchored there has been tremendous uncertainty about the cruise industry’s viability in terms of liquidity and practicality, since many ships rely on circulated air and can not easily accommodate social distancing protocols.
Netflix Analysts Pull Forward Subscriber Growth Forecast After Signup Surge
By: Visible Alpha Research & Innovation Lab
On April 21, Netflix reported exceedingly better-than-expected net new subscribers in their fiscal 1Q20 as COVID-19 induced lockdowns confined people to their homes and spurred demand for their streaming content. Well-timed hits like “Tiger King” and “Ozark” kept Netflix relevant on social media as many shelter-in-place ordinances began, and all told Netflix signed up 15.7M new subscribers in the quarter.
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Forecasting the Global Business Impact and Recovery from Covid-19
By: Visible Alpha Research & Innovation Lab
A Global Meta-Analysis of Investment Research Analyst Forecasts
While the world reels from the social and economic shocks caused by the Covid-19 pandemic and the measures taken to mitigate its impact, the rebound in equity markets suggests that investors are already looking forward to a return to some semblance of normalcy.
But how does the market expect that recovery to play out?
COVID-19 Analyst Revisions Ahead of Earnings Season
By: Visible Alpha Research & Innovation Lab
Earnings season is here, and companies are expected to update full-year guidance to reflect the impact of the COVID-19 crisis. As events have unfolded since the start of the year some analysts have made revisions to their estimates accordingly.
Analysts Forecast Disney+ Hitting Subscriber Goal Three Years Ahead of Schedule
By: Visible Alpha Research & Innovation Lab
Disney+ Subscriptions Revised Higher
The launch of Disney+ has exceeded most analyst expectations after ending its first quarter with 26.5M subscribers – more than 30% above estimates. Analysts have since raised estimates for 2020 subscribers by 54% to 46M, up from 30M before earnings. At Investor Day last year, Disney forecasted a five-year goal of reaching 60-90M subscribers. The low-end of that guidance is now expected to be achieved three years ahead of schedule, with consensus estimates calling for 61M subscribers by 2021.
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Roku Deceleration Expected Despite New Streaming Services
By: Visible Alpha Research & Innovation Lab
Roku’s impressive growth to date has been driven by the cord-cutting trend, a growing number of streaming services and increased investment in original programming. The platform generates sales by promoting streaming services, earning a portion of subscription revenue when customers sign up for new services, and when customers view ads on Ad-supported channels on their platform.
Growth Drivers Peaked
Despite the launch of new streaming services like Disney+ and Apple TV+, analysts project decelerating growth in most of Roku’s key drivers. Slowing growth expectations are largely being attributed to rising competition of alternative streaming hardware and smart TV operating systems, a lack of new OEM partners, and a longer timeline for international expansion. In addition, due to a new feature which prompts users to confirm they’re still watching a channel after a period of no engagement, the company also expects streaming hour growth to decline.
December 2019 Company Newsletter
By: Erin Gifford
In late October, members of the product, research, marketing and operations teams attended a two-day training with Pragmatic Institute. We conducted a Q&A with Samantha Miller, Chief Product Officer, on the training — keep reading to learn more!
