Hard Knocks for Meta

Good morning and how are you doing? Welcome to this week’s edition of 4 Customs Street, our weekly newsletter on the stock market.

The newsletter is divided into two:?

• Green White Green—focused on the Nigerian stock market.?
• Star-Spangled Banner—focused on the US stock market.?

Green White Green Last Week?

Last week, the NGX All-Share Index gained 2.33%. The index measures the average performance of stocks on the exchange.

RT Briscoe was the best-performing stock last week. It gained 40% opening at ?0.20 and closing at ?0.28, up ?0.08.?

Courteville Business Solutions led last week’s losers. The stock declined by 11.67% opening at ?0.60 and closing at ?0.53, down ?0.07.?

Airtel Africa 9M 2021 numbers?

Airtel Africa on Friday released its results for the nine months ended December 2021. Revenue rose by 22.5% from $2.8 billion in 2020 to $3.4 billion in 2021.?

The biggest revenue earners for telcos are voice and data. The company made $1.7 billion dollars from voice revenue and $1.1 billion dollars from data. Data revenue grew 33.9% year-on-year, while voice revenue grew by 13.6%. At this pace, data revenue could overtake voice revenue in a few years.?

Profit after tax rose by 97.3% from $261 million in 2020 to $514 million in 2021.

The same pattern also played out at Airtel Nigeria.?

Revenue rose by 21.3% from $1.1 billion in 2020 to $1.3 billion in 2021. Voice revenue amounted to $717 million for the period, while data revenue amounted to $539 million. Data revenue grew at a faster pace compared to voice, up 35.9% year-on-year.?

Oily news

Okomu Oil Palm confirmed newspaper reports that the company’s plantation at Okomu Udo in Ovia local government was attacked by gunmen on Tuesday, February 1. One worker was killed, three excavators were set ablaze and ninety hectares of the rubber plantation were set ablaze.?

The firm stated disruptions were minimal and normal operations resumed. It is also liaising with the police and other authorities to secure the company and workers.?

Green White Green This Week?

We will see more firms release their unaudited results for the 2021 financial year.

Star-Spangled Banner Last Week?

Last week was a good one as the 3 key indexes closed positively. The S&P 500 index gained 1.55%. The Dow gained 1.05%. The NASDAQ composite index gained 2.3%.

Peloton shares popped by 26%? after closing hours on Friday following news that Amazon may be interested in buying the firm. The company makes exercise equipment for home use and has struggled since the fading of the pandemic. The reopening means lots of people are back to the gym.?

Meta (formerly known as Facebook) shares fell by 21% last week, following lower earnings guidance.?

The company in its guidance for Q1 2022 expects a 3% to 11% growth in revenue to $27 billion to $30 billion. The firm attributed the slowdown to competition and a shift in engagement towards reels which monetise at lower rates compared to Feed and stories.?

A change in Apple’s privacy settings will lower the firm’s revenue by $10 billion in 2022. Users now have the choice of preventing an app from tracking them when they open their Apple devices.

Star-Spangled Banner This Week?

Inflation figures for the month of January will be out sometime during the week. Forecasts place the figure at 7.3%. If that comes through, it will be the highest inflation rate since 1981. This can rekindle fears about a sharp interest rate hike in March, and push stock prices lower.?

Pfizer, Peloton, Coca-Cola, and Disney will be dropping their earnings during the week.?

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