The market sentiment reversal following January’s inflation report will put struggling companies on watch. Maplebear (CART), which runs Instacart, announced it would cut 250 of its talented team members. In Q4, it posted profits falling to 44 cents a share, down from $1.11. Total revenue increased by 6% to $803 million.
Instacart’s results are below analyst targets.
High-end gaming and peripherals supplier Corsair Gaming (CRSR) is on the move down again. The firm posted revenue rising by 4.7%, below the expectations for growth of 7.5%. It earned 22 cents a share.
In the entertainment sector, Paramount (PARA) will try to rebound from yesterday’s 3% drop. It is reportedly cutting 800 jobs. Cost reductions are CEO Bob Bakish’s top priority this year. Paramount’s weak stock might hurt Warner Bros. Discover (WBD), which closed below $10.00 on Tuesday. Investors are wary of buying companies that have high debt and reliance on advertising revenue.
In the crypto market, watch Bitcoin (BTC-USD). It pulled back from $50,000 when the inflation report lowered the chances of the Fed lowering interest rates. Fintech firms are the stocks to avoid today. Marqeta (MQ), PayPal (PYPL), and SoFi (SOFI) may underperform in the days ahead. Investors may prefer more conservative holdings like Ally Financial (ALLY) instead.
