Stocks rallied on Wednesday following sharp declines in the previous session sparked by a hotter-than-expected inflation report.
The January Consumer Price Index had investors paring back bets the Federal Reserve would cut interest rates as soon as expected.
These stocks made moves Wednesday:
Shares of
Lyft
rose 35% after the ride-hailing company reported adjusted earnings in the fourth quarter of 18 cents a share, topping forecasts of 9 cents.
Lyft
also said it expected to post positive free cash flow for the first time in fiscal 2024. The stock had surged more than 60% in after-hours trading Tuesday after a press release incorrectly said the company anticipated adjusted Ebitda margin expansion in 2024 of around 500 basis points, or around five percentage points, when it should have said 50 basis points. The error was corrected on the company’s conference call.
Uber Technologies
jumped 15% after its board authorized the Lyft rival to repurchase up to $7 billion of common stock.
Robinhood Markets
swung to a profit in the fourth quarter on better-than-expected revenue, sending shares of the online brokerage up 13%.
Robinhood
reported earnings of 3 cents a share compared with expectations for a loss of 1 cent. Revenue of $471 million beat estimates of $455 million.
QuidelOrtho
fell 32% after the diagnostics company reported fourth-quarter adjusted earnings of $1.17 a share, well below analysts’ expectations of $2.04, while revenue fell to $742.6 million from $866.5 million a year earlier and missed forecasts. The company’s forecast for 2024 also missed Wall Street estimates.
Upstart Holdings
declined 20% after the consumer lending company said it expected first-quarter revenue of about $125 million, below analysts’ projections of $152.3 million.
Upstart
also forecast negative earnings before interest, taxes, depreciation and amortization of $25 million versus expectations of about $5 million in adjusted Ebitda.
Zillow
reported fourth-quarter revenue of $474 million, up 9% from a year earlier and above analysts’ expectations of $452 million. The loss in the period of $73 million was narrower than analysts’ expectations that called for a loss of $77 million. The real estate company said it expects first-quarter revenue of $495 million to $510 million versus analysts’ expectations of $500.4 million. Shares rose 7.8%.
Kraft Heinz
fell 5.5% after quarterly sales at the seller of Oscar Mayer hot dogs and Philadelphia cream cheese fell 7.1% from a year earlier and missed analysts’ expectations as higher prices have pushed consumers to buy less in grocery stores.
Fourth-quarter earnings at
MGM Resorts
were better than expected and revenue at the casino company rose 22% to $4.38 billion. Revenue from
MGM China
increased nearly sixfold. Shares, however, were down 6.3% as revenue at MGM’s regional operations dropped 12%.
Akamai Technologies
reported fourth-quarter adjusted earnings of $1.69 a share, beating analysts’ estimates of $1.59, while revenue of $995 million came up just short of forecasts. For the first quarter, the security software company said it expects adjusted profit of $1.59 to $1.64 a share on revenue of $980 million to $1 billion versus estimates for profit of $1.59 a share on revenue of $993 million. The stock was down 8.2%.
SentinelOne
was up 3.5% to $30 after the cybersecurity company was upgraded to Buy from Neutral at BofA Securities and the price target was raised to $35 from $26.50.
Instacart
unveiled plans to reduce staff by 7%, allowing the grocery-delivery company to “reshape the company and flatten the organization so we can focus on our most promising initiatives,” said Chief Executive Fidji Simo. The company also announced mixed fourth-quarter results. The stock fell 1.9%.
Write to Joe Woelfel at [email protected]
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