Dow Jones Today: Stocks Pare Losses, Yields Soar on Hot Inflation Report
Doordash Stock Rises as Booming Holiday Orders Boost Revenue
45 minutes ago
DoorDash (DASH) shares rose Wednesday, a day after the food delivery service posted strong sales and guidance as customers flocked to its platform during the holiday season.
The company reported fourth-quarter revenue jumped 25% year-over-year to $2.87 billion, beating the $2.84 billion estimate by analysts surveyed by Visible Alpha.
Total orders were up 19% to 685 million, 11 million more than expected. Adjusted EBITDA soared 56% to $566 million, also better than anticipated.
For the current quarter, DoorDash sees Marketplace Gross Order Value (GOV), which measures the total value of all app orders and subscription fees, of $22.6 billion to $23.0 billion. The Visible Alpha prediction was for $22.4 billion.
Following the report, JPMorgan boosted its price target to $205 from $155, and Deutsche Bank raised it to $246 from $224.
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Shares of DoorDash rose 2.5% to their highest level since November 2021.
Upstart Holdings Stock Soars as AI Lending Platform Posts Surprise Profit
1 hr 26 min ago
Shares of Upstart Holdings (UPST) skyrocketed nearly 30% Wednesday, a day after the artificial intelligence (AI) lending marketplace posted a surprise adjusted profit and gave strong guidance as transactions soared.
Upstart reported fourth-quarter adjusted earnings per share (EPS) of $0.26, while analysts surveyed by Visible Alpha were looking for an adjusted loss per share of $0.03. Revenue jumped 56% year-over-year to $219.0 million, also above forecasts.
Transaction revenue was 68% higher to $2.11 billion, and the number of loans soared 89% to 245,663.
Co-founder and CEO Dave Girouard said Upstart’s “business grew dramatically across all product categories” during Q4. Girouard added that Upstart enters 2025 with “unparalleled energy and optimism for the future of Upstart AI lending and the mission we’re on together.”
The company sees a current-quarter GAAP net loss of about $20 million, and revenue of around $200 million. The Visible Alpha estimates were for a loss of $31.3 million and revenue of $180.5 million.
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Upstart Holdings shares traded at their highest level since April 2022.
Price Levels To Watch as Supermicro Stock Rises on Q2 Update
2 hr 3 min ago
Super Micro Computer (SMCI) shares were up 4% in intraday trading Wednesday after the troubled server maker said it expects to submit its delayed 2024 financial reports by the Nasdaq’s Feb. 25 deadline to avoid being delisted.
It’s been a wild ride for Supermicro stock, which lost nearly 10% during regular trading hours Tuesday and began after-hours trading in the red before whipsawing. The company’s shares have fallen around 6% in the last month but have surged more than 35% in February as of Tuesday’s close in anticipation of this update. However, the stock has lost nearly half its value over the past year.
Supermicro shares broke out above the top trendline of a descending broadening formation last Friday, potentially also forming an inverse head and shoulders bottoming pattern in the process.
While the relative strength index (RSI) edged lower after yesterday’s fall in regular trading, the indicator still confirms bullish price momentum with a reading just below the overbought threshold.
Let’s apply technical analysis to identify important overhead areas where the shares could run into resistance.
The first overhead area to track sits around the psychological $50 level. This region on the chart could provide resistance near the inverse head and shoulders’ neckline, which also lies close to the downward-sloping 200-day moving average.
A decisive breakout above this price would confirm the pattern, which could propel a move to around $70. Investors may look to offload shares around this level near the February 2024 pullback low and late-April trough.
Follow-through buying could see the shares rally to the $96 level, an area that may provide resistance near a trendline that connects a series of peaks on the chart between February and July last year.
CVS Health Stock Pops as Q4 Sales, Earnings Top Estimates
3 hr 19 min ago
Shares of CVS Health (CVS) surged in premarket trading Wednesday after the health insurance and pharmacy giant reported better-than-expected fourth-quarter results.
CVS reported adjusted earnings per share (EPS) of $1.19 on revenue of $97.71 billion. Analysts polled by Visible Alpha expected adjusted EPS of $0.91 on revenue of $96.89 billion.
CVS shares were up over 14% in early trading Wednesday. They entered the day down about 28% over the past 12 months.
“We have continued to see growth in key areas of our business, including the Pharmacy and Consumer Wellness segment, while we address the industry-wide challenges that have impacted our Health Care Benefits segment,” new CEO David Joyner said.
The results cap a tumultuous quarter for CVS, which saw the company replace its CEO in October, weeks after reports emerged that it was considering separating its retail pharmacies and Aetna health insurance operations amid struggling results and pressure from investors.
Stock Futures Plummet on Hotter-than-Expected Inflation Report
4 hr 12 min ago
Futures contracts connected to the Dow Jones Industrial Average were down 0.9% in premarket trading on Wednesday.
S&P 500 futures were down 1%.
Nasdaq 100 futures were off 1.1%.