Stock markets will reward companies that beat earnings expectations and sell those that miss consensus estimates. Last night, Lyft rose by nearly 18% after it unexpectedly said it expects to post a full-year positive free cash flow. The stock rose as much as 60% when the company posted an error in its Adjusted EBITDA margin of 500 basis points. Its actual value was 50 basis points.
In the last quarter, Lyft reported a smaller loss of $26.3 million, compared to $588.1 million last year. Its revenue increased by 4% Y/Y to $1.2 billion.
Traders will bet on Airbnb (ABNB) stock today after it posted revenue growing by 16.8% Y/Y to $2.22 billion. It will enhance shareholder returns by buying back $6 billion worth of stock. ABNB stock fell by 4.3% in after-hours trade.
Robinhood (HOOD) posted revenue growing by 23.9% Y/Y to $471 million. The company now demonstrating its merits of growth. Net interest revenue increased by 41% Y/Y to $236 million. Transaction-based revenues increased by 8% Y/Y to $200 million.
Among the magnificent 7, selling pressure may increase after Amazon’s (AMZN) Jeff Bazos reportedly sold $4 billion of stock in only four trading days. Fear might spread to the other mega caps, including Alphabet (GOOG), Meta Platforms (META), and Microsoft (MSFT).
