Premarket Winners and Losers
U.S. futures were steady Friday as investors anticipated the monthly employment data for signs of interest rate decreases.
Today’s largest premarket U.S. stock moves:
Top Gainers
DocuSign (NASDAQ:DOCU) shares rose 8.8% after the virtual signature firm provided good current-quarter projections and revealed better-than-expected fourth-quarter performance due to new contract wins.
Gap (NYSE:GPS) shares surged 8.1% after reporting better-than-expected fourth-quarter performance, driven by robust demand for enhanced Old Navy and namesake products.
After unveiling three new EVs and announcing a $2 billion savings from suspending production at its Georgia factory, Rivian (NASDAQ:RIVN) stock rose 1%.
Top losers
MongoDB (NASDAQ:MDB) shares slumped 8.7% as the database software company’s projection for the current quarter underwhelmed, despite its prior quarter performance exceeding expectations.
Marvell (NASDAQ:MRVL) shares slumped 5.8% after the tech firm anticipated weak first-quarter earnings due to weaker wireless infrastructure, consumer, and business demand.
Costco’s shares slumped 4.1% after the big-box retailer announced second-quarter sales that below forecasts due to cost-conscious consumers’ lower desire for higher-priced products.
Broadcom (NASDAQ:AVGO) shares slid 1.8% as its full-year outlook disappointed investors, despite its $10 billion AI chip sales prediction.
The FDA postponed the approval deadline for Eli Lilly‘s experimental Alzheimer’s medicine, sending its shares down 0.6%.
Stocks in focus
Gap (NYSE:GPS) shares rose 5% after reporting better-than-expected Q4 results. This was due to excellent Old Navy and Gap comparative sales, margins, and cash flow increases. In Q1, the business expects revenues to stay stable at $3.3B, close to the consensus of $3.27B. Gross margin could rise 100 basis points from 37.2% last quarter.
DocuSign’s (NASDAQ:DOCU) shares gained 4% after its 4Q24 earnings showed 8% Y/Y subscription revenue growth. The electronic signature business forecasts 1Q25 revenue of $704M to $708M, topping analysts’ $699.1M estimate. DocuSign expects sales of $2.91B to $2.92B this year, matching consensus projections. The business also announced StateRAMP Authorization, allowing users to employ Contract Lifecycle Management and eSignature.
RBC Capital Markets upgraded Carvana (NYSE:CVNA) to Sector perform, sending the stock up 10%. Analyst Brad Erickson increased his price target to a Street-high $90, up 13% from the previous price. RBC Capital Markets says an Underperform rating is “infeasible for the foreseeable future.” The stock might rise more. Erickson said the company’s cash creation per car may be more than investors think.
After solid Q4 earnings, Marvell Technology (NASDAQ:MRVL) shares fell over 7% due to a dismal Q1 guidance. The business estimates Q1 sales of $1.15B, plus or minus 5%, below analysts’ $1.36B estimate. Marvell expects adjusted gross margins of 62% to 63% and adjusted earnings of $0.18 to $0.28 per share, significantly below the average forecast of $0.40. Marvell also announced a $3B stock buyback.
Costco Wholesale’s (NASDAQ:COST) shares slumped roughly 5% after its FQ2 earnings reports, which missed the top-line expectations despite a 5.7% Y/Y growth. Comparable sales rose +5.6% during the quarter, above the +5.1% estimate.
Despite beating Q4 earnings and sales forecasts, MongoDB (NASDAQ:MDB) shares fell 4% owing to its dovish FY2025 guidance. MongoDB expects Q1 sales of $436M to $440M, below the average of $449.08M. Non-GAAP EPS is expected to be $0.34–$0.39, much below the consensus of $0.61. The business estimates FY2024 sales between $1.9B and $1.93B, below the average expectation of $2.03B. Lower below the consensus of $3.22, non-GAAP EPS is expected to be $2.27–$2.49.
Petrobras (NYSE:PBR) shares fell 13% after the firm reported a smaller-than-expected net profit and fewer shareholder distributions, suggesting its dividends may stop. The board authorized Q4 dividends of 1.10 reais per share, totaling 14.2B reais ($2.9B), with no special payments for the year. Analysts predicted $3.7B dividends and $3B special dividends. Petrobras CEO Jean Paul Prates said rising investment on wind, solar, and biofuel programs made him more cautious about payouts.
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