Lyft’s Guidance
S&P 500 futures rose 21 points, 0.4%, Nasdaq 100 was 110 points, 0.7%, and Dow was 94 points, 0.3%.
Aftermarket gains for Lyft are cut by guidance typo.
Lyft shares fell sharply on Tuesday after its chief financial officer revealed the business had inflated a key full-year margin forecast.
Lyft first predicted 500 basis points of margin expansion in 2024, sending shares surging in extended hours dealmaking. The excitement was dashed when CFO Erin Brewer told analysts in an earnings call that Lyft had misrepresented this outlook in its press release. The company forecasts 50 basis point growth instead.
Lyft shares retained some of its rally in premarket trade due to estimates that it will be free cash flow positive for the first time this year. Fourth-quarter earnings exceeded Wall Street expectations.
On Wednesday, Cisco Systems (NASDAQ:CSCO), Occidental Petroleum (NYSE:OXY), and Kraft Heinz (NASDAQ:KHC) will post quarterly results.
Sony announces financial services listing
After lowering its PS5 sales projection, Sony (TYO:6758) will float its financial services subsidiary next year, supporting shares.
Sony confirmed its ambitions to list the sector, which includes insurance and digital banking, and said it will retain slightly under 20% shares.
Sony cautioned that PS5 sales for the year ending in March will be 21 million devices, down from its previous projection of 25 million, due to sluggish holiday shopping demand. The games unit’s operating profit fell by a quarter due to hardware promotions and reduced first-party title sales, but its movies, music, and chips divisions performed better.
Overall operating income at Walkman inventor rose 10% to 463.3 billion yen ($1 = 150.66 yen), above estimates. Sony Japan-listed shares fell slightly on Wednesday.
Bezos sells $4 billion Amazon stock last week.
Over the previous week, Amazon.com (NASDAQ:AMZN) founder Jeff Bezos sold more stock, bringing his total transactions to almost $4 billion.
Amazon disclosed on Tuesday that Bezos, the company’s executive chairman with a Forbes-estimated net worth of over $190B, sold 12 million shares for $2B between Friday and Monday. Bezos sold 24 million shares this month.
Amazon previously announced that Bezos will sell 50 million shares, worth $8.4B at current prices, by January. Amazon’s stock price has risen over 50% in the past year and is near an all-time high.
S&P Capital IQ data reported by the Financial Times shows that Bezos remains the company’s largest stakeholder after the sales.
Economic Calendar
7:00 AM ET MBA Mortgage Applications Data
8:15 AM ET ADP Employment Change for January
8:30 AM ET Employment Costs for Q4
9:45 AM ET Chicago PMI for January
10:30 AM ET Weekly DOE Inventory Data
2:00 PM ET FOMC Meeting – no rate change expected.
Other Key Events:
China Caixin Manufacturing PMI for January
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