Today investors digested the latest earnings reports, stock futures fell and Treasury yields jumped in premarket.
Top stock gainers
AppLovin (NASDAQ:APP) shares rose over 15% after reporting better-than-expected Q1 results. Compared to last year, revenue rose 48% and adjusted EBITDA rose 101%. AppLovin also predicted Q2 revenue of $1.06B to $1.08B, exceeding the consensus expectation of $1.01B.
Equinix (NASDAQ:EQIX) shares rose 11% after missing the consensus in Q1 and predicting consistent Y/Y growth. The company anticipates 6%–7% sales growth, 9%–12% AFFO, and 7%–10% AFFO per share. President and CEO Charles Meyers said, “Q1 revenue was $2.1 billion, up 6% from last year. The rapidly changing AI landscape continues to spur economic growth, offering great potential for Equinix as our customers see the relevance of digital efforts in long-term revenue growth and operational efficiency. This high demand from customers across different sectors makes Platform Equinix the trusted partner for digital leaders to interconnect and improve our world’s digital infrastructure.”
Top stock losses
Airbnb (NASDAQ:ABNB) posted good Q1 results with gross bookings growth of 12% year over year, driven by robust growth in nights and experiences booked and a slight ADR rise. Despite this, shares declined 8%. The company anticipates faster Y/Y revenue growth in Q3 than Q2. Compared to the consensus expectation of $2.74B, the online travel company predicts revenue of $2.68B to $2.74B. ABNB forecasts Q2 night booking growth to be consistent compared to Q1’s +9.5%. For the peak summer travel season, ABNB reported strong demand for travel around major events like the Olympics and Euro Cup.
After outperforming in Q4, Arm Holdings (NASDAQ:ARM) declined more than 8%, indicating a weaker near-term outlook. In Q1 adjusted EPS, the chip designer expects $0.32 to $0.36 per share, compared to the consensus of $0.31, and sales of $875M to 925M, compared to $864.44M. FY2025 sales is predicted to be $3.8B to $4.1B, in line with the consensus of $3.98B, and adjusted EPS of $1.45 to $1.65, in line with the consensus of $1.53.
SolarEdge (NASDAQ:SEDG) shares fell 8% after disappointing Q1 results, including a 35% Q/Q revenue drop and a wider-than-expected loss of -1.90 per share vs. -$0.92. The business also forecast Q2 revenues of $250M to $280M, below the average of $306.62.
Premarket
Gainers
Bumble (NASDAQ:BMBL) stock rose 12% after the online dating service exceeded expectations for first-quarter revenue, aided by an increase in paid users.
Yeti Holdings (NYSE:YETI) stock surged 12% after the outdoor equipment manufacturer exceeded first-quarter profit projections and upped guidance due to strength in coolers and overseas sales.
Warby Parker’s (NYSE:WRBY) stock increased 9.3% after the eyewear retailer upgraded its full-year expectations, overcoming a surprising quarterly loss.
Robinhood (NASDAQ:HOOD) stock increased 5.3% after the trading platform reported first-quarter earnings and revenue that exceeded forecasts, bolstered by strong crypto trading volumes and a high borrowing rate environment that increased net interest revenue.
Losers
Airbnb (NASDAQ:ABNB) stock slumped 9.3% after the vacation rental business anticipated second-quarter revenue lower than expected, despite robust demand outside of North America.
Arm Holdings (NASDAQ:ARM) ADRs plummeted 7.5% after the chip designer issued annual sales guidance that fell short of expectations, amid a surge in industry spending on artificial intelligence.
Planet Fitness (NYSE:PLNT) stock fell 7.5% after the fitness facility operator revised its full-year outlook to reflect a more cautious consumer.
Warner Brothers Discovery (NASDAQ:WBD) stock slumped 4% after the entertainment company missed first-quarter revenue projections, citing a sluggish advertising market and strike-related delays at its studio unit.
Papa John’s (NASDAQ:PZZA) stock declined 0.4% after the pizza restaurant reported lower first-quarter earnings as sales fell without the bump from a year ago’s high-volume last week of December.
Boeing’s (NYSE:BA) stock declined 0.4% after a 767 cargo plane was forced to make an emergency landing at Istanbul Airport without front landing gear, the latest in a string of safety difficulties for the aircraft manufacturer.
Stocks In Focus
Roblox (RBLX) Class A shares fell more than 27% before of the opening bell after the kids gaming platform provided dismal current quarter bookings estimates, as well as lower outlook for the rest of the year. Roblox (RBLX), whose main demographic is 9 to 12-year-olds, expects Q2 bookings of $870 million to $900 million, compared to a consensus expectation of $902.5 million. Bookings for the full fiscal year 2024 are now expected to reach $4 billion to $4.1 billion, up from $4.14 billion to $4.28 billion before. The guidance obscured a relatively robust Q1 result, with 19% year-over-year bookings growth and a 17% increase in average daily active users to 77.7 million.
Six Flags Entertainment (SIX) shares fell around 2% in pre-market trade after the theme park operator reported a top and bottom line loss for the seasonally sluggish first quarter. Six Flags’ (SIX) Q1 revenue fell 6% year on year to $133 million, while its net loss increased to $83 million from $70 million a year ago. Furthermore, despite increased attendance at its theme parks, guest spending indicators have fallen. The decline was primarily due to lesser revenue from subscriptions after the initial 12-month commitment period. Six Flags (SIX) CEO Selim Bassoul said the company was preparing for the high summer season, noting that 2024 season pass sales through April had climbed by double digits compared to last year.
Warner Bros. Discovery (WBD) Class A shares fell about 4% ahead of the market open, as the entertainment firm missed its quarterly top and bottom line targets. Warner Bros. (WBD) total revenue fell 7% year on year to $9.96 billion, driven by decreases in the studios and networks sectors. Warner Bros.’ (WBD) streaming unit generated flat revenue. Warner Bros.’ (WBD) studios business, in particular, had a 13% drop in revenue, owing primarily to decreased sales from games that faced a difficult comparison to the popularity of Hogwarts Legacy a year before, as well as a hit to television revenue from Hollywood’s 2023 strikes, which resulted in fewer episodes in Q1.
Zscaler (ZS) shares will come under scrutiny a day after the cybersecurity firm stated that it was conducting an ongoing investigation into a possible data breach. Zscaler’s (ZS) share price fell more than 3% after its update on Wednesday. They were up somewhat in pre-market trade. The corporation stated that it was aware of a public post on X (previously Twitter) by a “threat actor” who claimed to have potentially gotten illegal information. “We take every potential danger and claim seriously and will continue our thorough examination. “We will continue to investigate, monitor the situation, and provide updates,” Zscaler (ZS) stated.
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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.