Several companies made significant moves in after-hours trading, reflecting a mix of layoffs, earnings results, and guidance updates.
Block, a payment processing firm, announced plans to reduce its workforce by over 4,000 employees, which constitutes nearly half of its total staff. Following this announcement, Block’s shares surged by 24% in extended trading.
Conversely, cloud security company Zscaler experienced a nearly 10% drop in shares. The company reported deferred revenue of $2.36 billion for the second quarter, falling short of the anticipated $2.45 billion while also missing billings estimates.
Shares of Monster Beverage fell about 3%. Although the company reported fourth-quarter revenue of $2.13 billion, surpassing expectations, its operating margin of 29% lagged behind the consensus estimate.
Dell Technologies witnessed a positive trend, with shares rising by 10% after delivering strong fourth-quarter earnings of $3.89 per share, well above the expected $3.53. Revenue also exceeded forecasts at $33.38 billion.
On a negative note, Rocket Lab’s stock slid 4% following a projected adjusted loss for the first quarter that was wider than anticipated. Intuit, the developer of TurboTax, saw shares fall 7% after its earnings forecast missed expectations.
In contrast, Autodesk’s shares climbed over 6% after the company provided optimistic full-year revenue guidance of $8.10 to $8.17 billion, outpacing analyst predictions.
Lastly, Flutter Entertainment’s shares fell 9% due to fourth-quarter earnings that failed to meet expectations, alongside a disappointing full-year forecast. CoreWeave also experienced a 9% decline as its adjusted earnings for the fourth quarter fell short of analyst projections.
Why this story matters
- Financial market reactions can signal investor confidence in a company’s future.
Key takeaway
- Layoffs can lead to short-term stock price gains, while earnings misses typically result in declines.
Opposing viewpoint
- Despite short-term volatility, some companies may strengthen future performance by streamlining operations or providing strong guidance.
