Wolfspeed ‘growing pains.’ Meta’s rumored Durham presence.
Another earnings season is upon us.
This week, several prominent public companies with Triangle ties released their latest quarterly earnings. The news shot some of their stocks higher and plunged others (looking at you, Meta). Here’s a look at key earnings news so far and how it relates to the area. .
Wolfspeed’s supply headache
Demand for Wolfspeed semiconductors is outstripping supply, the company’s CEO Gregg Lowe told investors Wednesday. “We’re entering a period of significant expansion, and we’re experiencing associated growing pains,” he said.
Operating under the name Cree until last year, Wolfspeed employs around 2,500 people in the Triangle. The company is headquartered in Research Triangle Park and plans to expand after receiving a massive state incentive package in September to construct an 1,800-job facility in Chatham County.
Wolfspeed makes its semiconductors from a material called silicon carbide which it grows itself. Demand for these semiconductors has grown in recent years alongside demand for the electric vehicles that use them.
Investors didn’t like hearing from Wolfspeed that “manufacturing and supply challenges” will limit the company’s revenue in the coming quarters. Wolfspeed stock was down 16% Thursday.
Meta’s Durham presence in doubt?
Facebook’s parent company reported swelling losses in its virtual and augmented reality division, Reality Labs, which has been quietly building its foothold in Durham.
Reality Labs reported an operating loss of around $3.7 billion in the third quarter. The division’s costs rose and its revenue dropped by nearly half due to fewer sales of Quest 2, Meta’s virtual reality headset. As the company looks to grow in the metaverse, it’s increased its investment in VR and AR.
On Wednesday, Meta CEO Mark Zuckerberg told investors the company will be deliberate in its commitment to Reality Labs going forward.
“We expect Reality Labs expenses will increase meaningfully again in 2023,” he said Wednesday before adding, “beyond 2023, we expect to pace Reality Labs investments to ensure that we can achieve our goal of growing overall company operating income.”
Investors responded unfavorably to Meta’s earnings report overall. As of midday Thursday, the tech giant’s stock was down 22%.
In June, WRAL, citing unnamed sources, reported Meta was planning to establish a “significant” presence in Durham. Since then, the company has listed multiple Durham-based jobs on LinkedIn, including managerial positions with Reality Labs.
Meta spokespeople have yet to confirm its plans in Durham.
Big Wake employer beats expectations
IQVIA, one of the largest employers in Wake County, beat market expectations once again. A provider of health care analytics, it reported 14% growth in year-over-year earnings Wednesday.
The company ranks as Wake’s 15th-largest employer with more than 4,550 people. It has added almost 2,000 jobs in the past few years according to a county employment database.
“IQVIA delivered another quarter of strong financial results despite market concerns about slowing demand, broader macroeconomic challenges and the various geopolitical issues,” company CEO Ari Bousbib told investors Wednesday.
Investors welcomed the earnings figures, as the company’s stock rose by more than 16% this week.
This story was produced with financial support from a coalition of partners led by Innovate Raleigh as part of an independent journalism fellowship program. The N&O maintains full editorial control of the work.