Stock Futures Rise After Strong Close for S&P 500

Stock futures were mostly higher on Friday after the S&P 500 closed at a record high, reaching its 11th record close in 2024. This positive momentum comes after Wall Street bounced back from earlier losses due to mixed economic data.

Coinbase Global Reports Impressive Q4 Earnings

Crypto trading platform Coinbase Global delivered impressive fourth-quarter earnings and revenue that exceeded Wall Street expectations. As a result, shares of Coinbase rose 13% in premarket trading. The company reported earnings of $1.04 per share, a significant improvement from a loss of $2.46 per share in the previous year. Additionally, sales increased to $905 million from $605 million. During the shareholder communication, Coinbase highlighted that it is now a stronger company than it was a year ago and is poised to capitalize on future opportunities.

Applied Materials Beats Analyst Forecasts

Applied Materials, a chip equipment maker, surpassed analysts’ expectations with adjusted earnings of $2.13 per share in its fiscal first quarter. Analysts had predicted earnings of $1.90 per share. The company’s revenue also exceeded expectations, reaching $6.71 billion compared to the anticipated $6.48 billion. Applied Materials provided its outlook for the second quarter, anticipating revenue of $6.5 billion, with potential variances of plus or minus $400 million, while analysts expected $6.34 billion. Consequently, shares of Applied Materials soared 13%.

Trade Desk Outperforms Analyst Expectations

Advertising-technology company Trade Desk experienced a 20% surge in its stock price after announcing a first-quarter outlook that surpassed analyst expectations. Trade Desk projected revenue of at least $478 million during this period, along with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $130 million. By comparison, analysts had anticipated revenue of $451 million and an EBITDA of $113 million.

DoorDash Reports Strong Sales, Suffers Wider Loss

DoorDash, a food-delivery company, disclosed better-than-expected fourth-quarter sales; however, its loss for the quarter was larger than anticipated. Consequently, the stock dropped by 6.1% in premarket trading. Despite this setback, DoorDash experienced a 22% increase in gross order volume compared to the previous year, totaling $17.6 billion.

Nike to Reduce Workforce as it Focuses on Key Categories

Nike, the popular sneaker company, is planning to cut approximately 2% of its workforce, which translates to more than 1,600 employees. This move is part of Nike’s strategy to reduce costs and allocate more resources towards important categories such as running, women’s apparel, and the Jordan brand. According to a memo reviewed by The Wall Street Journal, Nike CEO John Donahoe emphasized the company’s commitment to investing in these areas.

Despite this news, Nike’s stock experienced a 0.6% decline.

DraftKings Reports Mixed Results and Announces Acquisition

DraftKings, a leading sports betting and daily fantasy sports company, reported a fourth-quarter loss of 10 cents per share. However, this is a significant improvement compared to the year-earlier loss of 53 cents per share. Analysts were expecting a profit of 8 cents per share. While revenue increased by 44% to $1.23 billion, it fell slightly short of analysts’ expectations of $1.24 billion.

Looking ahead, DraftKings is optimistic about its future revenue growth. The company revised its fiscal 2024 revenue guidance to a range between $4.65 billion and $4.90 billion. Additionally, DraftKings plans to acquire lottery app Jackpocket for approximately $750 million in cash and stock. In response to these announcements, DraftKings shares declined by 3.3%.

Roku Faces Challenges Despite Strong Fourth-Quarter Results

Media-streaming company Roku experienced a significant drop of 14% after announcing its fourth-quarter results. While the company’s performance surpassed analysts’ estimates, Roku projected a first-quarter gross profit of around $370 million. This falls slightly below the expected figure of $373.4 million. Roku attributed this caution to potential challenges in the macro environment and an uncertain advertising market recovery.

Yelp’s Lower Than Expected Guidance Reflects Soft Demand

Yelp, an online platform providing local business recommendations, issued lower-than-expected guidance for both the first quarter and fiscal 2024. These projections are a reflection of the soft demand experienced by Yelp’s restaurant and retail segment. Consequently, Yelp’s stock dropped by 9.2%.

Toast Exceeds Expectations with Strong Revenue Growth

Cloud-based restaurant-management software company, Toast, achieved a remarkable 35% year-on-year increase in fourth-quarter revenue, reaching $1.04 billion. This result surpassed Wall Street forecasts, boosting confidence in the company’s performance. As a result, shares of Toast rose by 5.3%.

Upcoming Earnings Reports and Conclusion

On Friday, earnings reports are expected from TC Energy, Vulcan Materials, Treehouse Foods, PPL, and Cinemark. These reports will provide further insights into the performance of these companies.

Overall, the business landscape remains dynamic, with various companies striving to adapt to changing market conditions and pursue growth opportunities.

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