Meta, Exxon, Snap: Stocks That Defined the Week

Shares in several big technology companies struggled Thursday as doubts mounted about a tech boom that powered the U.S. stock market during the pandemic and bolstered the economy. Facebook parent Meta Platforms reported a sharp decline in profit and said it lost about a million daily users globally. Its shares plummeted 26% Thursday. But Amazon.com Inc. shares surged after its profit nearly doubled in the holiday period.

Spotify Technology SA SPOT 9.18%

The static at Spotify is getting louder. The music streaming giant on Wednesday said it gained users in the recent quarter but declined to issue annual guidance, amid controversy sparked by musician Neil Young pulling his music from the platform in protest of what he said was vaccine misinformation spread by Joe Rogan. The podcaster has spoken against vaccine mandates for indoor events and suggested that young, healthy people shouldn’t be vaccinated. Chief Executive Daniel Ek said on Wednesday that it was too early to tell whether the controversy was having an impact on subscribers. Spotify shares sank 17% Thursday.

Exxon Mobil Corp. XOM 2.17%

High oil and gas prices fueled a rebound for Exxon. XOM 2.17% The oil giant on Tuesday reported $23 billion in profit for 2021, its highest total since 2014, including $8.9 billion in profit in the fourth quarter. Large Western energy companies are luring back investors as they predict a multiyear upswing for the oil-and-gas industry. The firms benefit from rapidly rising commodity prices, as demand for some fuels tops pre-pandemic levels. Many of the companies say they will stick to pledges to moderate their growth and return more cash to shareholders. Exxon shares gained 6.4% Tuesday.

United Parcel Service Inc.

UPS shipped fewer parcels, but delivered better results. The company on Tuesday boosted its quarterly dividend by 49% as its fourth-quarter profit and revenue surged. While UPS transported fewer packages on its trucks and planes than it did a year earlier, the firm is making more money per piece. This reflects Chief Executive Carol Tomé’s stated strategy of “better, not bigger,” under which UPS focuses on shipping more packages for its more profitable customers, including smaller businesses, and jettisoning some shipping volume where it wasn’t making as much money. The planned per-share payout of $1.52 reflects its policy to return half of earnings to shareholders through its dividend. UPS shares closed up 14% Tuesday.

AMC Entertainment Holdings Inc.

Spider-Man helped save the day in AMC’s latest quarter. The movie-theater chain posted preliminary results Tuesday that showed better-than-expected revenue in the most recent period. While the Omicron variant likely kept some moviegoers at home, the period included the splashy releases of new movies such as “Spider-Man: No Way Home,” which topped $1 billion world-wide at the box office in the two weeks following its Dec. 17 release. Chief Executive Adam Aron said the quarterly results will be the company’s strongest since before the Covid-19 pandemic gutted the movie-theater industry almost two years ago. Despite the better-than-expected quarterly revenue, the company provided a weaker outlook on losses. AMC shares added 5% Tuesday.

Starbucks Corp.

Holiday demand wasn’t enough of a jolt for Starbucks sales. The coffee chain on Tuesday said that while holiday sales helped boost its business in its most recent quarter, sales weakened in the latter part of the period during the Omicron surge. Some locations have moved to takeout only or shortened operating hours as the variant spread. Starbucks also said rising costs of supplies and wages will continue to weigh on profits. The company spent more on Covid-19 isolation pay for workers and on training as it hired more employees. Starbucks shares fell 1% Wednesday.

Snap Inc.

Snap snapped back. Its shares fell Thursday amid a broader pullback of social-media companies but recovered after Snap posted its first quarterly profit and a 20% year-over-year increase in daily active users for the Snapchat app popular with teens and young adults. Snap also signaled it is adjusting to Apple’s privacy policy changes that have disrupted the digital advertising market. The iPhone maker’s software changes require apps to ask users whether they want to be tracked. Many users have opted out, making it more difficult for advertisers to target their ads at specific groups and receive feedback about how their targeted ads are doing. Snap shares surged 59% Friday.

Write to Francesca Fontana at [email protected]