Stock Futures Pointed Higher as S&P 500 Nears 5,000 Mark
Stock futures are indicating a mostly positive start to the trading day on Friday, following the S&P 500’s strong performance on Thursday when it briefly surpassed the 5,000 mark before closing just below it. The index gained less than 0.1% in the session. Investors remain optimistic about the overall market outlook as they await the latest earnings reports from major companies.
Affirm Holdings Reports Strong Revenue Growth, but Stock Falls in Pre-market Trading
Affirm Holdings, a lending and payments company, posted a robust fiscal second-quarter revenue growth of 48% compared to the previous year, reaching $591 million. The company also reported a loss of 54 cents per share. Gross merchandise volume increased by 32% to $7.5 billion, marking the third consecutive quarter of accelerating growth. Despite these positive figures, Affirm’s stock was down 11% in pre-market trading, following a 10% rise before the earnings report.
Cloudflare Surges on Better Than Expected Fourth-Quarter Earnings
Internet infrastructure company Cloudflare exceeded analysts’ expectations with its fourth-quarter adjusted earnings of 15 cents per share, up from 6 cents in the previous year. The company reported a revenue increase of 32% to $363 million, driven by strong momentum with large customers. As a result, Cloudflare’s stock surged by 27%.
Expedia Group’s CEO to be Replaced, Shares Plummet
Expedia Group, an online travel agency, announced that its CEO, Peter Kern, will be replaced by Ariane Gorin, who has been with the company since 2013. Gorin’s appointment will be effective from May 13. Expedia reported fourth-quarter adjusted earnings of $1.72 per share, beating analysts’ estimates of $1.68. However, the news of the leadership change resulted in a 14% decline in the company’s stock. Expedia’s gross bookings for the quarter stood at $21.67 billion, a 6% increase, but slightly below Wall Street’s expectations.
Pinterest Falls Short of Revenue Estimate, Projects Modest Growth
Social media site Pinterest reported fourth-quarter revenue slightly below Wall Street estimates and an adjusted profit of 53 cents per share, beating expectations by 1 cent. The company projected first-quarter revenue of $690 million to $705 million, showing a growth range of 15% to 17%. However, the midpoint of this range fell slightly below analysts’ consensus of $702 million. As a result, shares of Pinterest fell by 11%.
Take-Two Interactive Software Misses Revenue Estimates, Cites Weakness in Mobile Advertising
Take-Two Interactive Software, a videogame publisher, reported fiscal third-quarter adjusted revenue in line with analysts’ estimates. However, the company’s revenue guidance for the fourth quarter fell short of expectations, ranging from $1.27 billion to $1.32 billion, compared to estimates of $1.51 billion. Take-Two cited weakness in mobile advertising and revenue from its NBA 2K24 basketball game as contributing factors. The stock declined by 7.6%.
PepsiCo Reports Fourth-Quarter Earnings Amid Inflationary Environment
Beverage and snack maker PepsiCo is set to release its fourth-quarter earnings report, with analysts expecting earnings of $1.72 per share on revenue of $28.4 billion. The company, like its peers, has faced challenges in navigating price increases in an inflationary environment. PepsiCo’s stock rose by 1% ahead of the earnings report.
Analyst comment
1. Positive news: Stock futures are pointing higher as S&P 500 nears 5,000 mark. Market is likely to start with a positive tone as investors remain optimistic about the overall market outlook.
2. Negative news: Affirm Holdings reports strong revenue growth, but stock falls in pre-market trading. The company’s positive figures are overshadowed by the stock’s decline, indicating investor disappointment or concerns.
3. Positive news: Cloudflare surges on better than expected fourth-quarter earnings. The company’s strong financial performance drives a significant increase in its stock.
4. Negative news: Expedia Group’s CEO to be replaced, shares plummet. The leadership change sparks a significant decline in the company’s stock, despite beating earnings estimates.
5. Negative news: Pinterest falls short of revenue estimate, projects modest growth. The company’s revenue projection slightly below expectations leads to a decline in its stock.
6. Negative news: Take-Two Interactive Software misses revenue estimates, cites weakness in mobile advertising. The company’s revenue guidance for the future falls short due to specific factors, resulting in a decline in its stock.
7. Neutral news: PepsiCo reports fourth-quarter earnings amid inflationary environment. The stock rises slightly ahead of the earnings report, reflecting anticipation and uncertainty surrounding the company’s performance.
