By Trevor Williams
Stock futures edged down on Wednesday as market participants assessed the latest wave of corporate earnings.
Here are some of Wednesday’s biggest stock movers:
Biggest stock gainers
- Lyft (NASDAQ:LYFT) shares surged over 6% following better-than-expected Q1 results, which showed a top-line growth of 28% Y/Y, driven by a 21% increase in gross bookings. For Q2, the company anticipates gross bookings in the range of $4B to $4.1B and adjusted EBITDA between $95M and $100M, with an adjusted EBITDA margin of 2.4%. Looking ahead to FY2024, Lyft expects rides growth in the mid-teens Y/Y and gross bookings growth slightly exceeding rides growth Y/Y, with an adjusted EBITDA margin of around 2.1%.
- Reddit (NYSE:RDDT) stock jumped 16% after mixed Q1 results, including revenue growth of 48% Y/Y, daily active users +37% Y/Y, and average revenue per user +8%. The social media company reported its first profitable quarter on an adjusted EBITDA basis and added more than 20M daily active users to its platform a year ago. Steve Huffman, co-founder and top boss, stated, “We grew users across the platform, including logged-in and logged-out and the U.S. and abroad. We were cash flow positive and had our first profitable Q1 on an adjusted EBITDA basis, which, as an ads business, is typically our smallest quarter from a revenue standpoint.” Additionally, the company sees Q2 revenue of $240M to $255M, above the consensus estimate of $227.52M.
- Arista Networks (NYSE:ANET) shares gained 7% following its upbeat Q1 results and outlook. The company expects Q2 sales between $1.62B and $1.65B, slightly above the consensus estimate of $1.62B. Arista Networks also forecasts an adjusted gross margin of 64% and an adjusted operating margin of approximately 44%. Additionally, the company completed its $2B share buyback program and approved a new $1.2B share repurchase program.
Biggest stock losers
- Twilio (NYSE:TWLO) shares dropped around 8% despite surpassing expectations in its Q1 results, as the company provided softer guidance for Q2 revenue. The company expects Q2 revenue to range between $1.05B and $1.06B, which is below the consensus estimate of $1.08B. However, the company anticipates its adjusted EPS to be between $0.64 and $0.68, surpassing the consensus of $0.62. Additionally, Twilio’s dollar-based net expansion rate decreased to 102% in Q1 from 106% a year ago.
- Shares of Rivian Automotive (NASDAQ:RIVN) declined 8% following its mixed Q1 results, which showed an 82% Y/Y revenue increase but a larger-than-expected EPS loss for the quarter. Rivian aims to extend its cash runway by managing operating and capital expenditures and optimizing working capital. The company also anticipates a reduction in capital expenditures required for the R2 launch by moving production to Normal, Illinois, with savings expected to impact 2025 and 2026. Rivian has lowered its capital expenditures guidance by $500M to $1.2B.
- Uber Technologies (NYSE:UBER) shares dropped about 8% despite the company surpassing expectations on both the top and bottom lines in Q1. However, gross bookings for the quarter, which grew 20% Y/Y to $37.76B, fell short of the consensus of $37.97B. Additionally, the ride-hailing app provided guidance for Q2 gross bookings between $38.75B and $40.25B, with the midpoint below the consensus expectation of $40.04B.
- Shopify (NYSE:SHOP) tumbled nearly 19% after issuing disappointing guidance, even though it surpassed market expectations in Q1 results. The Canadian e-commerce company also swung to a loss in Q1, driven primarily by higher costs associated with subscription services, merchant solutions, and increased marketing expenses. Looking ahead, Shopify forecasts revenue growth in the high-teens percentage range Y/Y for Q2. However, they anticipate a decrease in gross margin by about 50 basis points and operating expenses to remain around 45% to 46% of revenue.
- Tripadvisor (NASDAQ:TRIP) lost one third of its value on Wednesday after the company said in its Q1 earnings report that a special committee of its board determined there is no transaction with a third party that is in the best interests of the company and its stockholders. The special committee will continue evaluating proposed alternatives. This news follows previous reports of takeover interest and a potential buyout by Liberty TripAdvisor, a major Tripadvisor shareholder.
- Despite reporting higher-than-expected FQ4 earnings, ZoomInfo Technologies (NASDAQ:ZI) shares plunged 22% as Piper Sandler lowered its recommendation on the stock to Neutral from Overweight and reduced the price target to $15 from $24, citing ongoing weakness in small and midsize business segments affecting growth in the second half of the year. The downgrade was attributed to concerns about the timing and extent of a recovery amid challenging macro conditions, AI sales productivity issues, and pricing pressures in the SMB segment. The company also revised its 2024 revenue estimate downward to $1.26B from $1.27B, aligning with the consensus estimate.
