Today Stock futures remained stable before the latest corporate earnings frenzy. Uber, AB InBev, Airbnb, Shopify, and Arm Holdings report this session.
Top stock gainers
After mixed Q1 earnings, Reddit (NYSE:RDDT) shares rose 16%. Revenue grew 48% Y/Y, daily active users increased 37%, and average revenue per user increased 8%. A year ago, the social media business added over 20M daily active members and recorded its first profitable quarter on an adjusted EBITDA basis. According to co-founder and CEO Steve Huffman, “We gained logged-in and logged-out users in the U.S. and internationally. We were cash flow positive and had our first successful adjusted EBITDA Q1, which is usually our worst revenue quarter as an ads firm.” The business expects Q2 sales of $240M to $255M, above the average of $227.52M.
Arista Networks (NYSE:ANET) shares rose 7% after its positive Q1 earnings and forecast. The business predicts Q2 sales between $1.62B and $1.65B, slightly above the average. An adjusted gross margin of 64% and an adjusted operating margin of 44% are also expected from Arista Networks. Additionally, the business completed its $2B share buyback and approved a $1.2B repurchase program.
Lyft (NASDAQ:LYFT) shares rose over 6% after better-than-expected Q1 earnings revealed 28% Y/Y top-line growth powered by 21% gross booking growth. The business expects gross bookings of $4B to $4.1B, adjusted EBITDA of $95M to $100M, and a 2.4% margin for Q2. In FY2024, Lyft predicts rides growth in the mid-teens Y/Y, gross bookings growth slightly above rides growth, and an adjusted EBITDA margin of 2.1%.
Top stock losses
Twilio (NYSE:TWLO) shares fell 8% after exceeding Q1 forecasts, due to lower Q2 sales projections. The business estimates Q2 sales of $1.05B to $1.06B, below the average expectation of $1.08B. However, the business expects adjusted EPS between $0.64 and $0.68, above the consensus of $0.62. Twilio’s dollar-based net expansion rate fell to 102% in Q1 from 106% a year earlier.
Rivian Automotive (NASDAQ:RIVN) shares fell 5% after its mixed Q1 results, which included an 82% Y/Y sales gain but a larger-than-expected EPS loss. Rivian manages operational and capital expenses and optimizes working capital to increase cash runway. Moving R2 manufacturing to Normal, Illinois, is predicted to reduce capital expenditures for 2025 and 2026. Rivian decreased its capital expenditure projection by $500M to $1.2B.
Premarket
Gainers
Reddit (NYSE:RDDT) shares increased 12% after the social media platform announced in its first financial report that it might record an adjusted profit in the second quarter due to its thriving advertising business and content-licensing arrangements with AI businesses.
Luminar Technologies (NASDAQ:LAZR) shares rose 8.5% after the lidar maker revealed that Tesla (NASDAQ:TSLA) was its largest customer in the first quarter, accounting for more than 10% of the company’s sales.
Arista Networks (NYSE:ANET) shares increased 7.3% after the cloud networking firm exceeded quarterly expectations and issued an upbeat current-quarter outlook, citing rising demand for AI networking solutions.
Lyft’s (NASDAQ:LYFT) shares climbed 5.5% after the ride-hailing business forecast higher-than-expected gross bookings and core earnings for the current quarter.
AB Inbev (NYSE:BUD) ADRs increased 4.5% after the brewing company reported revenue that matched forecasts and volumes that above expectations in the first quarter, with the impact of a U.S. boycott of its Bud Light brand expected to ease.
Wynn Resorts (NASDAQ:WYNN) shares jumped 2.4% as the casino operator exceeded estimates for first-quarter earnings, driven by strong gaming, luxury retail, and hotel bookings at its Macau locations.
Apple’s (NASDAQ:AAPL) shares jumped 0.4% after iPhone shipments in China surged by 12% in March, according to data from a Chinese research group, after price cuts by the tech giant and its dealers.
Losers
Upstart (NASDAQ:UPST) stock fell 13% after the online lending platform provided disappointing expectations for the current quarter.
Twilio’s (NYSE:TWLO) stock slumped 7.7% after the cloud communications firm anticipated lower-than-expected revenue for the current quarter, citing economic uncertainty.
Uber (NYSE:UBER) shares fell 6% after the ride-hailing company anticipated second-quarter gross bookings lower than expected after missing the target in the first three months.
Rivian (NASDAQ:RIVN) shares plummeted 5.4% after the electric car producer revealed a larger-than-expected first-quarter loss while maintaining a 2024 production target that was far below than Wall Street forecasts.
Electronic Arts’ (NASDAQ:EA) shares slumped 3.5% after the video game company published disappointing full-year profit and sales forecasts.
Stocks In Focus
Uber Technologies (UBER) stock fell nearly 9% in pre-market trade after a key quarterly sales statistic missed estimates. Uber’s Q1 gross bookings rose 20% to $37.65B, missing the estimate of $37.97B. Additionally, the business expects Q2 gross bookings of $38.75B to $40.25B, lower than the expectation of $40.04B. Uber’s (UBER) freight revenue fell, affecting quarterly gross bookings. According to CEO Dara Khosrowshahi, over 7M people chose “to earn flexibly on Uber (UBER) every month,” generating $16.6B. Charts show UBER performance.
Shopify (SHOP) shares fell over 19% before the opening bell after the Canadian e-commerce company gave poor expectations. Shopify (SHOP) lost money in Q1 due to rising subscription, merchant, and marketing costs. The business predicted high-teens Y/Y revenue increase for Q2. That probably upset investors, especially because the e-commerce company had been growing over 25% for the past few quarters. Gross margin is expected to drop 50 basis points for Shopify (SHOP). Charts show SHOP performance.
Airbnb (ABNB) will report Q1 results after the close. Wall Street forecasts 23 cents per share on $2.06B in ABNB revenue. Our rivals Booking Holdings (BKNG) and Expedia (EXPE) reported robust travel demand last week, especially internationally. Airbnb’s (ABNB) report is expected to follow that theme, but bookings growth is expected to slow from Q4 2023. Airbnb (ABNB)’s plans to employ AI to improve its platform will also be watched by investors.
With FQ4 2024 earnings expected after hours, U.S.-listed Arm (ARM) shares will also be watched. Wall Street forecasts 30 cents per share on $878.24M in ARM revenue. The previous time Arm (ARM) reported results, its stock rose over 50% as investors praised its good earnings and upped guidance. The company gives blueprints to chipmakers, and its designs are in Apple (AAPL) and Android smartphones. In its previous earnings call, management claimed demand was high for its central processors to accompany AI chips.
Intel (INTC) stock fell more than 2% pre-market after lowering its current quarter revenue expectations. The business now expects Q2 revenue below its $12.5B to $13.5B range. After the U.S. government revoked Intel (INTC) export permits to supply “a customer in China”—presumably Huawei—the move occurred. Investors lamented Intel (INTC)’s Q1 results over two weeks ago, citing lack of AI and foundry advancements.
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After reporting 8% Y/Y subscription revenue growth in 4Q24, DocuSign (NASDAQ:DOCU) shares rose 10%. Electronic signature business predicts 1Q25 revenue of $704M to $708M, above analysts’ $699.1M forecast. DocuSign expects sales of $2.91B to $2.92B this year, with consensus of $2.91B. Customer adoption of Contract Lifecycle Management and eSignature in StateRAMP-authorized environments was also emphasized by the organization.
MongoDB (NASDAQ:MDB) shares fell 8% after exceeding Q4 profit and sales forecasts owing to its dovish FY2025 outlook. MongoDB expects revenues of $436M to $440M in Q1, below the average expectation of $449.08M. Below the estimate of $0.61, non-GAAP EPS is expected to be $0.34–$0.39. The business estimates FY2024 sales between $1.9B and $1.93B, below the average of $2.03B. Unlike the consensus of $3.22, non-GAAP EPS is expected to be $2.27 to $2.49.
Marvell Technology (NASDAQ:MRVL) shares fell over 7% after solid Q4 earnings due to a dismal Q1 guidance. The business predicts Q1 sales of $1.15B, plus or less 5%, behind analysts’ $1.36B. Marvell predicts 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 announced $3B in stock buybacks.
Despite a 5.7% Y/Y rise, Costco Wholesale’s NASDAQ:COST shares plummeted roughly 4% as its FQ2 earnings reports fell short of the top-line estimate. Comparable sales increased by 5.6% during the quarter, above the 5.1% estimate.
MongoDB (NASDAQ:MDB) shares fell 8% after exceeding Q4 profit and sales forecasts owing to its dovish FY2025 outlook. MongoDB expects revenues of $436M to $440M in Q1, below the average expectation of $449.08M. Below the estimate of $0.61, non-GAAP EPS is expected to be $0.34–$0.39. The business estimates FY2024 sales between $1.9B and $1.93B, below the average of $2.03B. Unlike the consensus of $3.22, non-GAAP EPS is expected to be $2.27 to $2.49.
Marvell Technology (NASDAQ:MRVL) shares fell over 7% after solid Q4 earnings due to a dismal Q1 guidance. The business predicts Q1 sales of $1.15B, plus or less 5%, behind analysts’ $1.36B. Marvell predicts 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 announced $3B in stock buybacks.
Despite a 5.7% Y/Y rise, Costco Wholesale’s NASDAQ:COST shares plummeted roughly 4% as its FQ2 earnings reports fell short of the top-line estimate. Comparable sales increased by 5.6% during the quarter, above the 5.1% estimate.