After-Hours Stock Movers: Airbnb, Super Micro, Lumen, and More
Airbnb
Shares of Airbnb fell 15% after the company reported mixed results for the second quarter and issued disappointing guidance for the upcoming quarter. The company is anticipating a moderation in growth rate, leading investors to react negatively.
Super Micro Computer
Following its earnings report, Super Micro Computer shares initially rose 5%. Although the company reported lower profit than expected for the second quarter, investors were optimistic due to expectations of a significant yearly revenue increase and the announcement of a 10-for-1 forward stock split. Despite the initial uptick, shares eventually fell 4% in after-hours trading.
Lumen Technologies
Lumen Technologies saw a remarkable 70% rise in its stock price after the company raised its full-year guidance for free cash flow from $100-$300 million to $1.0-$1.2 billion. This massive adjustment signaled strong future cash flows, boosting investor confidence.
Upstart Holdings
Upstart Holdings' shares rose by 20% following the company's report of a smaller-than-expected quarterly loss and better revenue. The company also provided strong revenue guidance, further fueling investor optimism.
Despite beating estimates and raising guidance, Reddit's shares fell by 5%. The decline suggests that expectations were high going into the earnings announcement, and the results may not have been enough to satisfy investors.
Instacart
Instacart experienced a 7% rise in its stock price after publishing strong second-quarter results, beating on both revenue and operating profit. The company also provided better-than-expected guidance for future operating profit.
Rivian Automotive
Rivian Automotive shares fell 2% after reporting mixed second-quarter results. The electric vehicle manufacturer missed on the bottom line despite solid revenue figures. However, the company maintained its guidance for the year.
Fortinet
Fortinet shares rose by 14% after the company issued stronger-than-expected second-quarter guidance and provided a solid forecast for the third quarter and full year.
Sunrun
Sunrun's stock increased by 7% following the announcement of its expanded support for the Texas energy grid through a partnership with Tesla Electric.
Understanding After-Hours Trading
After-hours trading refers to the buying and selling of securities outside of the regular trading hours. It allows investors to react to news and earnings reports released after the market closes. However, it also comes with risks such as lower liquidity and higher volatility. For example, Airbnb’s 15% drop demonstrates how news can significantly impact stock prices after-hours.
