Pinterest Shares Plummet After Disappointing Forecast and Revenue Report
Pinterest shares took a hit in extended trading on Thursday following a weaker-than-expected forecast and disappointing revenue report. Despite a 12% rise in revenue from the previous year, Pinterest’s net income stood at $201 million, or 29 cents per share, compared to $17.49 million, or 3 cents per share, in the previous year. The platform’s monthly active users in the fourth quarter increased by 11% to 498 million, surpassing analyst estimates of 487 million. However, the global average revenue per user fell short of expectations at $2, lower than the projected $2.05. Following the earnings report, Pinterest’s stock initially plummeted by as much as 28% to an after-hours low of $29.40. However, the announcement of a new Google partnership during a call with analysts led to a rebound, with the stock settling at a nearly 8% decline at $37.82. Pinterest CEO Bill Ready highlighted the potential of the Google partnership to improve monetization in international markets, citing the company’s under-monetization, particularly outside the U.S., where 80% of its users contribute to only 20% of its revenue. Pinterest’s report comes amidst a rebound in the digital advertising market, with Meta, Alphabet, and Amazon all demonstrating double-digit growth in their ad businesses.
Take-Two Interactive Releases Financial Results for Third Fiscal Quarter
Take-Two Interactive’s financial results for the third fiscal quarter show a slight decline in sales and bookings, but the company surpassed its guidance and recorded its smallest quarterly net loss since the acquisition of Zynga. Despite a setback in sales for NBA 2K24, some flagship titles like Grand Theft Auto 5 and Red Dead Redemption performed well. CEO Strauss Zelnick remains optimistic, emphasizing the strong performance of Grand Theft Auto 5 and Red Dead Redemption 2, as well as the company’s strong mobile performance with Zynga’s games. The company’s focus on cost-cutting and strategic investments will be crucial in navigating the evolving landscape of the video game industry.
Stocks Making Waves in Premarket Trading: Disney, PayPal, Arm, and More
Investors are closely monitoring Disney, PayPal, and Arm as they show early signs of volatility in the premarket session. Disney’s recent earnings report and streaming subscriber numbers, PayPal’s navigation of the fintech landscape, and ongoing developments in the tech industry for Arm are all contributing to the movement of these key stocks.
Wynn Resorts Reports Strong Q4 Numbers, Sparks Investment Discussions
Wynn Resorts (NASDAQ:WYNN) has reported strong Q4 numbers for the fiscal year 2023, surpassing analysts’ expectations with an 83.1% year-on-year increase in revenue and achieving a non-GAAP profit of $1.91 per share. The impressive results have sparked discussions about potential investment opportunities in Wynn Resorts, positioning the company as a noteworthy player in the casino and gaming sector.
PayPal Reports Better-Than-Expected Fourth-Quarter Results
PayPal reported better-than-expected fourth-quarter results with earnings per share of $1.48 and revenue of $8.03 billion. Despite the positive earnings, the number of active accounts fell 2% to 426 million, and the company’s guidance for the full year and first quarter fell just short of expectations. CEO Alex Chriss emphasized the company’s commitment to making necessary changes to drive profitable growth in the future.
Disney Reports Better-Than-Expected Fiscal First-Quarter Earnings
Disney exceeds earnings expectations, cuts costs, and plans strategic investments in Fortnite studio Epic Games and ESPN streaming service. Despite a decrease in Disney+ core subscribers, the company’s average revenue per user rose due to subscription cost hikes. Disney’s shares surged 7% in extended trading, showcasing progress in cost-cutting and strategic investments.
Snap Inc. Stock Plummets by 30% Following Significant Rally
Snap Inc.’s stock plummeted by 30% in Wednesday’s trading, leaving analysts puzzled by the rollercoaster ride of the company’s performance. Analysts express dismay and skepticism about Snap’s competitive position and financial prospects, as the stock witnesses a sharp decline following disappointing earnings report.
Cognizant forecasts full-year revenue below expectations
Cognizant Technology Solutions Corporation forecasts full-year revenue below expectations, reflecting a persistent weakness in demand for IT services. The company’s shares dropped 4% during extended trading, as businesses reduce technology and outsourcing expenses amidst sticky inflation and higher interest rates. Peer companies Tata Consultancy Services and Infosys also reported slow profit growth and missed targets, indicating a slowdown in the IT services sector. Cognizant anticipates revenue of $19 billion to $19.8 billion in 2024, falling short of analysts’ expectations, reflecting ongoing challenges in the IT services sector.
Fortinet Reports Strong Q4 2023 Results, Shares Surge
Fortinet (FTNT) reports strong Q4 2023 results, with a surge in shares after exceeding market expectations for earnings, revenue, and billings. The company projects Q1 2024 EPS and revenue in line with analyst estimates, attributing the success to growth in Security Operations and SASE billings.
Chipotle’s Quarterly Earnings Exceed Analysts’ Expectations
Chipotle Mexican Grill has reported quarterly earnings and revenue that exceeded analysts’ expectations, with a significant increase in restaurant traffic. The company’s same-store sales surpassed estimates, and its foot traffic rose by 7.4% in the quarter, defying the industry-wide trend of declining visits. Chipotle’s positive outlook for 2024 reflects its strong performance and strategic expansion plans, positioning the company as a strong player in the restaurant industry.