Market Movers: Super Micro, Lumen, Airbnb, and More

Wall Street rebounded on Wednesday after a tumultuous start to the week, which saw equities endure their worst session in nearly two years. Among the stocks making significant moves were Super Micro, Lumen Technologies, Airbnb, and others.

Super Micro Computer

Super Micro Computer reported fiscal fourth-quarter earnings that fell short of analysts’ expectations. The AI server maker announced that its adjusted gross profit margin for the period was 11.3%, down from 17.1% a year earlier. Despite this, the company expects first-quarter revenue of $6 billion to $7 billion, surpassing the consensus estimate of $5.52 billion. The company also unveiled a 10-for-1 stock split. Shares of Super Micro, which supplies hardware for Nvidia’s GPUs, were down 15% as investors reacted to the mixed news.

Lumen Technologies

Lumen Technologies saw its shares rise dramatically, up 93% on Tuesday and another 39% on Wednesday. This surge followed the company’s announcement that it expects full-year cash flow of $1 billion to $1.2 billion, significantly higher than the previous outlook of $100 million to $300 million. The boost was attributed to $5 billion in new business driven by increased demand for connectivity fueled by artificial intelligence.

Airbnb

Airbnb reported a second-quarter revenue increase of 11% to $2.75 billion, beating forecasts. However, the company noted shorter booking lead times globally and signs of slowing demand from U.S. guests. Airbnb expects third-quarter revenue to grow 8% to 10%, reaching between $3.67 billion and $3.73 billion, falling short of analysts’ expectations of $3.84 billion. Consequently, the stock dropped 15%.

CVS Health

CVS Health's shares fell 2.6% after the company cut its 2024 adjusted earnings forecast to $6.40 to $6.65 a share, down from at least $7 previously. The reduction was due to higher medical costs in its insurance business. Additionally, CVS missed second-quarter revenue expectations.

Rivian Automotive

Rivian Automotive's stock declined by 8% after reporting a second-quarter adjusted loss of $1.37 per share, wider than the expected loss of $1.25. Revenue rose slightly to $1.16 billion from $1.12 billion a year earlier. The electric vehicle startup maintained its full-year production guidance at 57,000 vehicles, but investors were concerned about the average loss of $32,705 per vehicle sold.

Lyft

Lyft shares fell 15% despite the ride-hailing company reporting its first-ever quarterly profit on a GAAP basis. The decline was driven by guidance that fell short of analysts’ estimates.

Fortinet

Fortinet reported better-than-expected second-quarter earnings, revenue, and billings, leading to a 21% jump in its stock. The cybersecurity company forecast third-quarter billings of $1.53 billion to $1.6 billion, compared to estimates of $1.59 billion.

Sunrun

Sunrun's stock rose 10% after the residential solar company reported second-quarter earnings of 55 cents per share, far exceeding analysts’ estimates of a 33-cent loss. Revenue of $529.3 million also beat expectations. The company announced a partnership with Tesla Electric in Texas, enrolling 150 customers in an aggregated power program.

Shopify

Shopify surged 20% after beating second-quarter earnings and sales estimates. The e-commerce platform reported a 22% increase in gross merchandise volume to $67.2 billion for the quarter.

Novo Nordisk

U.S.-listed shares of Novo Nordisk, the maker of weight-loss drug Ozempic, declined 6.1% after posting a 3% increase in second-quarter profit, missing analysts’ expectations. The company lowered its fiscal-year operating profit guidance but raised its sales outlook.

Upstart Holdings

Upstart Holdings saw a 22% increase in its stock after the financial-technology company announced third-quarter revenue expectations of $150 million and an adjusted loss for earnings before interest, taxes, depreciation, and amortization (Ebitda) of $5 million. Analysts had expected revenue of $135 million and a $13 million adjusted Ebitda loss. CEO Dave Girouard credited significant advances in AI models and increased operating efficiency for the company’s improvement.

Walt Disney

Walt Disney's shares fell 2.9% despite reporting fiscal third-quarter adjusted earnings of $1.39 per share, beating estimates of $1.20. Revenue of $23.16 billion topped forecasts of $23.07 billion. Disney's streaming business posted its first-ever quarterly profit, but operating income at its experiences division, including theme parks, fell 3.3%.

As the markets continue to stabilize, investors are keeping a close eye on these stocks and the factors driving their movements.

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