Today, Stock futures moved lower in the premarket hours on Friday before the release of the core PCE price index, the Fed’s favorite inflation gauge.
Top stock gainers
Following a FQ3 earnings beat, Zscaler (NASDAQ:ZS) shares rose 16% as the cloud security provider boosted its annual sales outlook for the third consecutive quarter amid escalating cyberattacks. The business now forecasts sales between $2.14B and $2.142B, beating the consensus estimate of $2.12B and the previous guidance of $2.118B to $2.122B. Additionally, Zscaler increased its estimated billings prediction to $2.603B-$2.606B from the prior $2.55B-$2.57B. Non-GAAP net income per share is now forecast to be $2.99 to $3.01, above the consensus of $2.76 and the preceding projection of $2.73 to $2.77. For FQ4, Zscaler predicts adjusted EPS of $0.69-$0.70 vs. the consensus of $0.67, with revenue between $565M and $567M vs. the consensus of $564.98M.
Top stock losses
Despite announcing good Q1 earnings, MongoDB (NASDAQ:MDB) shares lost one fourth of their value on a gloomy forecast. The company’s Q2 sales projection of $460M=$464M fell short of the consensus of $471M and adjusted EPS of $0.46-$0.49, was far below the consensus of $0.57. FY2025 sales projection predicted to be in the range of $1.88B and $1.90B, and adjusted EPS of $2.15-$2.30 was also below the consensus of $1.94B and $2.43 respectively.
Dell Technologies (NYSE:DELL) fell 13% following mixed Q1 earnings, citing decreased profitability. The gross margin rate declined 240 bps Y/Y to 21.6% while the operating margin rate slipped 100 bps to 4.1%. The business anticipated revenue between $93.5B and $97.5B vs. the average of $94.52B and adjusted EPS of $7.40 to $7.90 vs. the consensus of $7.84.
Trump Media & Technology Group (NASDAQ:DJT) shares plummeted 9% after a New York jury convicted former President Donald Trump on all 34 charges in a criminal trial. Trump is set to be sentenced on July 11. The maximum punishment for falsifying company records is four years in jail.
Premarket
Gainers
Gap (NYSE:GPS) stock rose 23% after the apparel retailer upped its full-year sales projection in new signals that its turnaround strategy is starting to work.
Ambarella (NASDAQ:AMBA) shares jumped 20% after the semiconductor design business disclosed a smaller-than-expected loss for the first quarter of fiscal year 2025 and given an optimistic revenue projection for the second quarter.
Zscaler (NASDAQ:ZS) stock soared 15% after the cloud security provider posted good quarterly earnings and also upped its expectations.
Losers
MongoDB (NASDAQ:MDB) stock plunged 24% after the database software developer offered light guidance for the quarter and decreased its prediction for the full fiscal year.
Dell Technologies (NYSE:DELL) stock dropped 15% after the technology group released a lower-than-anticipated current-quarter earnings projection and suggested that more spending on expanding out servers to meet artificial intelligence workloads will drag on full-year margins.
Nordstrom (NYSE:JWN) stock plummeted 7.5% after the department store company posted a wider-than-expected first-quarter loss, although revenue beat projections.
Marvell (NASDAQ:MRVL) stock slumped 5.7% after the chipmaker missed expectations for first-quarter sales, hampered by sluggish client spending in its wireless carrier and business industries.
Flutter Entertainment (NYSE:FLUT) stock plummeted 3% after the gaming firm announced the departure of global finance chief Paul Edgecliffe-Johnson.
Trump Media & Technology Group (NASDAQ:DJT) stock slumped 1.6% after the media and technology company, whose main owner is Donald Trump, after a New York jury convicted the former U.S. President guilty in the high-profile hush money trial.
Costco Wholesale (NASDAQ:COST) stock declined 0.5% after the warehouse retailer decided against hiking membership fees, overshadowing fiscal third-quarter profit, revenue and same-store sales that all above projections.
Stock in Focus
Dell (DELL) fell over 16% before trading on Friday after disappointing full-year margin expectations despite in-line Q1 results. The PC maker will face “inflationary input costs, the competitive environment, and a higher mix of AI-optimized servers”. To reduce margin pressures, it will cut operating expenses.
Gap (GPS) is up 25% premarket after a strong Q1 and full-year forecast. For the fifth quarter in a row, the retailer gained market share and saw increased comparative sales across all brands.
Trump Media & Technology Group (DJT), which owns Truth Social, slumped 6.5% in premarket trade after Trump’s conviction. The stock is up 5% ahead of trade, but expect volatility as investors react to the trial judgment.
After reporting lower quarterly revenue, BRP (DOOO) slumped 9.45% premarket. Canadian powersports vehicle company blamed reduced volumes across most product lines for disappointing top-line results. Reducing network inventories and increasing sales are its priorities.
After its Hong Kong shares jumped strongly today on predictions of record May deliveries, Chinese electric-vehicle producer NIO (NIO) may gain in the U.S. July 2023 saw a sales record for the company. Continued automobile and battery discounts may boost sales. The delivery data should be revealed on June 1.
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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.