Text size
Stock futures were pointing to a higher start for Wall Street on Wednesday.
Dreamstime
Stock futures edged higher Wednesday following losses on Wall Street after a downgrade of several regional U.S. banks. Trading was cautious ahead of inflation data Thursday.
These stocks were poised to make moves Wednesday:
Upstart Holdings
(UPST) fell 18% in premarket trading after the artificial-intelligence lending company issued an earnings and revenue forecast for the third quarter that was below expectations.
Upstart
expects revenue in the quarter of $140 million, lower than forecasts of $155.3 million. The company also expects adjusted earnings before interest, taxes, depreciation and amortization of $5 million vs. analysts’ expectations of $9.6 million.
Penn Entertainment
(PENN) was up 13% after saying its Barstool Sportsbook app would be rebranded as ESPN Bet this fall as part of a 10-year agreement with ESPN, which is owned by Walt
Disney
.
Penn will pay ESPN $1.5 billion over the 10 years. Penn also divested 100% of its stake in Barstool Sports to Barstool founder David Portnoy. Shares of rival
DraftKings
(DKNG) declined 3.6%.
Lyft
(LYFT), the ride-hailing service, posted adjusted earnings in the second quarter of 16 cents a share, well ahead of estimates that called for a loss of 1 cent, and issued a third-quarter sales forecast also ahead of expectations. But the stock was falling 7.4% following an outlook for the fourth quarter that disappointed. Executives on the company’s conference call said the “preliminary view of the fourth quarter suggests revenue will grow low to mid-single digits quarter over quarter.”
Doximity
(DOCS) was tumbling 25% after the physician cloud-software company said it would be cutting 10% of its workforce, about 100 employees, and reduced revenue guidance for fiscal 2024 to a range of $452 million and $468 million, down from previous guidance of $500 million to $506 million.
Akamai Technologies
(AKAM) reported second-quarter adjusted earnings that topped estimates as revenue rose 4% to $936 million. Shares of
Akamai
,
which has been diversifying into security software and cloud computing from its original content delivery network business, were up 5.7% in premarket trading.
Take-Two Interactive
‘s (TTWO) adjusted earnings in the fiscal first quarter missed expectations but the stock rose 2.7% in premarket trading after CEO Strauss Zelnick touted the videogame maker’s “powerful, powerful release schedule.”
Rivian Automotive
(RIVN) posted better-than-expected second-quarter results and raised its full-year production forecast. The electric-vehicle maker said it expects to make 52,000 vehicles in 2023, up from previous expectations of 50,000. The stock rose 2% in premarket trading.
Twilio
(TWLO) rose 8.4% after the software developer said it expects operating income for the full year of $350 million to $400 million, higher than prior guidance of $275 million to $350 million. Analysts were expecting operating income of $329 million.
Toast
(TOST) , the cloud-based platform for restaurant operations, was rising 13% after topping second-quarter revenue expectations and recording positive free cash flow of $39 million.
WeWork
(WE) tumbled 17% to about 17 cents a share after the provider of co-working spaces said as a result of its “losses and projected cash needs, combined with increased member churn and current liquidity levels, substantial doubt exists about the company’s ability to continue as a going concern.”
Earnings reports are expected Wednesday from
Walt Disney
(DIS),
Trade Desk
(TTD),
Illumina
(ILMN),
Roblox
(RBLX),
Wynn Resorts
(WYNN),
Applovin
(APP),
Plug Power
(PLUG), and
Wendy’s
(WEN).
Write to Joe Woelfel at joseph.woelfel@barrons.com
