- Scott Peters
- 09 Aug, 2023
- New York City
Lyft Inc declined 6.9% to $10.76 after the ride-hailing company released its quarterly results.
Stock jumped after the company reported adjusted earnings per share of 16 cents and revenue of $1.02 billion, meeting estimates set by some analysts.
But the stock turned lower after investors reassessed the company's fiscal fourth quarter revenue outlook which fell short of some analysts' estimates.
Revenue increased 3% to $1.02 billion from $990.7 million and net loss shrank to $114.2 million from $377.2 million and diluted loss per share fell to 30 cents from $1.08 a year ago.
Active riders in the second quarter rose 8.2% to 21.5 million from 19.9 million and average revenue per active rider fell 4.8% to $47.51 from $49.89 a year ago.
Rivian Automotive Inc was nearly unchanged at $24.80 after the maker of electric vehicles narrowed its quarterly loss and revised higher its production target.
Rivian said second quarter revenue jumped to $1.1 billion from $364 million and net loss shrank to $1.2 billion from $1.7 billion and diluted pre share declined to $1.27 from $1.89 a year ago.
The company forecasted 2023 production target of 52,000 from the previous estimate of 50,000 and higher than 25,000 from a year ago.
The company delivered 12,640 vehicles in the second quarter, sharply higher than 4,467 vehicles a year ago.
WeWork Inc plunged 9.9% to 19 cents after the company said in an SEC filing that it may consider restructuring its debt including bankruptcy amid weak membership rates.
Consolidated revenue in the second quarter rose to $844 million from $815 million and net loss shrank to $349 million from $577 million and diluted loss per share was 21 cents from 76 cents a year ago.
Average revenue per physical member increased 4% to $502 in the second quarter and physical membership declined to 587,000 from 589,000 but occupancy rate rose to 72% from 70% a year ago.
Company management is struggling to improve liquidity and profitability over the next year by cutting operating and capital expenditures, renegotiating lease payments and control churn rate and seek new capital through debt and securities sales.
On May 5, 2023, the Company closed on its previously announced debt exchange and restructuring transactions.
As of June 30, the company had $680 million of liquidity, consisting of $205 million of cash and $475 million of capacity under its delayed draw, first lien notes, of which $175 million were drawn in July.
PENN Entertainment Inc jumped 19% to $29.64 after the company signed a 10-year deal with ESPN to create ESPN Bet, a sports betting site.
As a part of the deal, Penn agreed to pay ESPN $1.85 billion in cash.
Bumble Inc decreased 1.8% to $17.67 after the online dating platform reported better-than-expected revenue and earnings in the second quarter.
Total revenue in the second quarter increased to $259.7 million from $219.2 million and net income swung to $6.7 million from a loss of $3.4 million and diluted earnings per share was 5 cents compared to (3 cents) a year ago.
However, the company's current quarter adjusted earnings outlook fell short of some investors.
Bumble forecasted third quarter revenue between $274 million and $280 million and adjusted operating earnings between $71 million and $73 million.
The company forecasted total 2023 revenue between $1.05 billion and $1.07 billion and adjusted operating earnings margin growth of at least 100 basis points.
Marqeta Inc soared 15.9% to $5.75 after the payment processing company reported mixed quarterly results.
Total processing volume in the second quarter surged 33% to $53.6billion from $40.4 billion a year ago.
Revenue in the second quarter rose 24% to $231 million from $186.6 million and net loss expanded to $58.8 million from $44.4 million and net loss per share rose to 11 cents from 8 cents a year ago.
The payment platform extended its deal with Block's Cash App card payment processing services for four more years.
The company also struck a multi-faceted partnership deal with Brazil-based Fitbank to expand in the region and help other fintech companies to process payments.
Akamai Technologies Inc soared 6.8% to $101.42 after the cyber security and internet infrastructure company reported better-than-expected second quarter earnings.
Second quarter revenue increased 4% to $936 million from $903 million and net income rose 7% to $129 million from $137.8 million and diluted earnings per share fell to 84 cents from 85 cents a year ago.
The company repurchased 1.6 million shares for an average price of $83.97 per share and a total of $137 million.
The company also revised higher its full-year 2023 estimates and guided its third quarter revenue between $937 million and $952 million and full-year revenue between $3.765 billion and $3.795 billion.
- Barry Adams
- 09 Aug, 2023
- New York City
Market averages attempted a rebound a day after regional banks dropped more than 3% after Moody's downgraded several banks.
The S&P 500 index and the Nasdaq Composite traded higher ahead of inflation data tomorrow.
Investors are anticipating that the recent cooling trend will continue in July but core inflation may stay higher.
Consumer prices have cooled following a decline in energy prices but service costs are still rising at elevated pace and core inflation is above the 2% target set by the Federal Reserve.
Market participants are worried that the Federal Reserve may abandon its target rate of 2% after the stubborn core inflation stays near 3%.
In overseas news, China reported deflation in July after consumer prices fell 0.3% from flat in June, the National Bureau of Statistics reported Wednesday.
Commodities prices traded volatile after the China inflation report but traders held out for an announcement of stimulus measures.
Closer to home, regional banks are expected to remain in focus after Moody's downgraded 10 banks and placed 11 other banks on its negative watch list.
U.S. Indexes & Yields
The S&P 500 index traded down 0.02% to 4,498.07 and the Nasdaq Composite declined 0.2% to 13,848.19.
The yield on 2-year Treasury notes decreased to 4.71%, 10-year Treasury notes inched lower to 4.01% and 30-year Treasury bonds edged down to 4.19%.
Crude oil decreased $0.97 to $82.87 a barrel and natural gas prices increased 7 cents to $2.74 a thermal unit.
U.S. Stock Movers
Lyft Inc declined 6.9% to $10.76 after the ride-hailing company released its quarterly results.
Stock jumped after the company reported adjusted earnings per share of 16 cents and revenue of $1.02 billion, meeting estimates set by some analysts.
But the stock turned lower after investors reassessed the company's fiscal fourth quarter revenue outlook which fell short of some analysts' estimates.
Rivian Automotive Inc was nearly unchanged at $24.80 after the maker of electric vehicles narrowed its quarterly loss and revised higher its production target.
Rivian said second quarter revenue jumped to $1.1 billion from $364 million and net loss shrank to $1.2 billion from $1.7 billion and diluted pre share declined to $1.27 from $1.89 a year ago.
The company forecasted 2023 production target of 52,000 from the previous estimate of 50,000 and higher than 25,000 from a year ago.
The company delivered 12,640 vehicles in the second quarter, sharply higher than 4,467 vehicles a year ago.
WeWork Inc plunged 9.9% to 19 cents after the company said in an SEC filing that it may consider restructuring its debt including bankruptcy amid weak membership rates.
PENN Entertainment Inc jumped 19% to $29.64 after the company signed a 10-year deal with ESPN to create ESPN Bet, a sports betting site.
As a part of the deal, Penn agreed to pay ESPN $1.85billion in cash.
- Inga Muller
- 09 Aug, 2023
- Frankfurt
European markets rebounded and banks recovered losses in the previous session after Italy's finance minister clarified windfall tax level.
Italian banks jumped between 2% and 4% after finance minister clarified windfall tax level to not exceed 0.1% of bank assets.
The DAX index increased 1.2% to 15,963.70, the CAC-40 index rose 1.4% to 7,369.09 and the FTSE 100 index added 0.8% to 7,589.29.
The yield on 10-year German bonds increased to 2.46%, French bonds traded higher to 3.03%, the UK gilts edged up to 4.39% and Italian bonds decreased to 4.13%.
The euro edged lower to $1.092, the British pound to $1.270 and the U.S. dollar fetched 87.66 Swiss cents.
ABN Amro Bank NV decreased 2.8% to €14.31 after the Dutch lender postponed its plan to buy back shares to the fourth quarter.
Mining companies rebounded on the hopes that the latest China deflation data may spur policymakers in providing additional stimulus to the property sector.
Glencore, Antofagasta, and Angle American jumped between 1% and 2%.
Continental AG edged up 0.8% to €70.50 despite the tire maker lowering its annual outlook.
Delivery Hero SE soared 7.2% to €39.94 after the food delivery services platform revised higher its revenue outlook.
Vestas Wind Systems AS increased 1.8% to Kr 182.82 after the wind turbine company reported a narrower second quarter loss and maintained its full-year 2023 outlook.
Hill & Smith PLC jumped 6.2% to 1,670.0 pence after the infrastructure company reported record first-half results.
Coca Cola HBC jumped 2.1% to €26.45 after the soft drinks beverage maker revised higher its organic growth estimate for the fiscal year 2023 and reiterated its operating earnings forecast.
- Bridgette Randall
- 09 Aug, 2023
- Frankfurt
European markets traded higher after banks rebounded and investors reviewed China inflation data.
Market averages jumped more than 1% and banks across the region advanced after Italy's finance minister clarified that the windfall tax will not exceed 0.1% of bank assets.
The government was forced to clarify its intent of levying 40% tax on excess profit linked to higher interest rates with a cap of 0.1% on assets with the intention of raising Є3 billion.
Intesa Sanpaolo, UniCredit, Banco BPM and Monte Dei Paschi di Siena jumped between 2% and 4%.
Banks in France, Germany and Spain also recovered losses in the previous session.
In Asia, China reported its first deflation over two years in July after consumer prices declined 0.3% from flat in June, the National Bureau of Statistics reported Wednesday.
Prices fell in July because of higher base previous year
China's consumer price inflation data followed weak international trade data a day ago that showed exports and imports fell in double digits in July, indicating weakening demand.
Investors are also awaiting U.S. inflation data Thursday and economists are estimating that the recent cooling of inflation will continue in July.
Europe Indexes & Yields
The DAX index increased 1.2% to 15,963.70, the CAC-40 index rose 1.4% to 7,369.09 and the FTSE 100 index added 0.8% to 7,589.29.
The yield on 10-year German bonds increased to 2.46%, French bonds traded higher to 3.03%, the UK gilts edged up to 4.39% and Italian bonds decreased to 4.13%.
The euro edged lower to $1.092, the British pound to $1.270 and the U.S. dollar fetched 87.66 Swiss cents.
Natural gas prices jumped to a two-week high after LNG flows to terminals in the U.S. eased and traders are forecasting supplies from the U.S. are likely to be diverted to Asia in the next three months because of higher prices.
Despite the recent surge in prices, natural gas storage across the European Union is near a record 87% level and regulators are aiming for 90% level before the end of November to meet demand in next winter.
Germany, Italy and Spain are at or near levels set by the EU authorities and France is expected to catch up in the next few weeks.
Brent crude decreased $0.67 to $86.78 a barrel and the Dutch TTF natural gas increased €3.88 to €34.99 per MWh.
Europe Stock Movers
ABN Amro Bank NV decreased 2.8% to €14.31 after the Dutch lender postponed its plan to buy back shares to the fourth quarter.
Mining companies rebounded on the hopes that the latest China deflation data may spur policymakers in providing additional stimulus to the property sector.
Glencore, Antofagasta, and Angle American jumped between 1% and 2%.
Continental AG edged up 0.8% to €70.50 despite the tire maker lowering its annual outlook.
Delivery Hero SE soared 7.2% to €39.94 after the food delivery services platform revised higher its revenue outlook.
Vestas Wind Systems AS increased 1.8% to Kr 182.82 after the wind turbine company reported a narrower second quarter loss and maintained its full-year 2023 outlook.
Hill & Smith PLC jumped 6.2% to 1,670.0 pence after the infrastructure company reported record first-half results.
Coca Cola HBC jumped 2.1% to €26.45 after the soft drinks beverage maker revised higher its organic growth estimate for the fiscal year 2023 and reiterated its operating earnings forecast.