Stock Market Update

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Stock futures are showing a slight uptick on Wednesday following the recent decline on Wall Street caused by the downgrade of several regional U.S. banks. Investors are exercising caution as they await inflation data set to be released on Thursday.

Upstart Holdings Reports Disappointing Forecast

Artificial intelligence lending company, Upstart Holdings (UPST), saw a significant drop of 19% in premarket trading as it issued a disappointing earnings and revenue forecast for the third quarter. The company expects to generate $140 million in revenue during the quarter, falling short of the projected $155.3 million. Additionally, Upstart anticipates adjusted earnings before interest, taxes, depreciation, and amortization of $5 million, which is lower than analysts’ expectations of $9.6 million.

Penn Entertainment Announces Rebranding Agreement

Penn Entertainment (PENN) witnessed an 11% increase after revealing plans to rebrand its Barstool Sportsbook app as ESPN Bet this fall. This rebranding initiative stems from a 10-year agreement between Penn and ESPN, which is owned by Walt Disney. As part of this agreement, Penn will pay ESPN a total of $1.5 billion over the course of the 10 years. Furthermore, Penn has divested its complete stake in Barstool Sports to Barstool founder David Portnoy. On the other hand, shares of rival company DraftKings (DKNG) experienced a decline of 3.6%.

Lyft Reports Better-than-Expected Earnings

Ride-hailing service, Lyft (LYFT), posted adjusted earnings of 16 cents per share in the second quarter, surpassing estimates that predicted a loss of 1 cent per share. In addition, Lyft provided a third-quarter sales forecast that exceeded expectations. However, despite these positive results, the company’s stock fell by 7.9% due to a disappointing outlook for the fourth quarter. During the company’s conference call, executives disclosed that the preliminary view of the fourth quarter suggested only low to mid-single digits growth in revenue quarter over quarter.

Doximity Faces Challenges and Adjusts Guidance

Physician cloud-software company, Doximity (DOCS), experienced a significant decrease of 26% following their announcement to cut 10% of its workforce, which amounts to approximately 100 employees. In addition, Doximity revised its revenue guidance for fiscal 2024 to a range of $452 million to $468 million, down from the previous guidance of $500 million to $506 million.

Take-Two Interactive’s Earnings Fall Short But Stock Rises

Take-Two Interactive (TTWO) reported adjusted earnings for the fiscal first quarter that missed expectations. However, despite the disappointing results, the stock managed to rise 2.7% in premarket trading. CEO Strauss Zelnick expressed optimism about the company’s upcoming releases, referring to its “powerful, powerful release schedule.”

Rivian Automotive Exceeds Expectations and Raises Production Forecast

Rivian Automotive (RIVN) announced better-than-expected second-quarter results and raised its production forecast for the full year. The electric-vehicle maker now anticipates producing 52,000 vehicles in 2023, surpassing its previous estimate of 50,000. This positive news led to a 1.9% increase in the stock’s value during premarket trading.

Twilio Thrives with Upgraded Operating Income Outlook

Software developer Twilio (TWLO) experienced a 6.4% surge in its stock following an announcement about its improved operating income guidance for the full year. The company now expects operating income to range between $350 million and $400 million, surpassing its earlier projection of $275 million to $350 million. Analysts had previously estimated operating income to be around $329 million.

Toast Excels in Second Quarter, Demonstrates Positive Cash Flow

Toast (TOST), a cloud-based platform catering to restaurant operations, impressed investors by exceeding revenue expectations for the second quarter and generating positive free cash flow of $39 million.

WeWork Faces Downturn Amid Financial Challenges

Co-working space provider WeWork (WE) encountered a sharp decline of 19% in its stock price, falling to just 17 cents per share. This significant drop came as WeWork expressed doubt about its ability to sustain operations due to ongoing losses, projected cash needs, heightened member churn, and low liquidity levels.

Upcoming Earnings Reports Awaited from Prominent Companies

Several major companies are set to release their earnings reports on Wednesday. Investors are particularly interested in results from Walt Disney (DIS), Trade Desk (TTD), Illumina (ILMN), Roblox (RBLX), Wynn Resorts (WYNN), Applovin (APP), Plug Power (PLUG), and Wendy’s (WEN).

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