Stock futures saw a modest increase on Thursday following the Federal Reserve's decision to leave interest rates unchanged. Chairman Jerome Powell noted that the tight monetary policy has been putting downward pressure on economic activity.
Fed Proceeds with Caution
During a press conference, Powell stated, "Given how far we have come along with the uncertainties and risks we face, the committee is proceeding carefully." The central bank maintained the target for the federal-funds rate between 5.25% and 5.5%.
Promising Stocks to Watch
Several stocks showed potential for significant movement on Thursday:
Technology company Qualcomm issued a fiscal first-quarter revenue forecast of $9.1 billion to $9.9 billion, surpassing the consensus estimate of $9.2 billion. The chip maker also expects higher earnings at $2.25 to $2.45 per share compared to the estimated $2.22. Shares of Qualcomm rose by 4.1%.
Short-term real-estate rental company Airbnb forecasted fourth-quarter revenue between $2.13 billion and $2.17 billion, slightly below the expected $2.18 billion. As a result, shares of Airbnb fell by 2.1%.
Payment company PayPal exceeded Wall Street's expectations with its third-quarter adjusted earnings. As a result, the company raised its full-year earnings forecast, leading to a 6.1% increase in premarket trading.
Solar-power company SolarEdge experienced a 17% decrease in premarket trading following a surprise loss and a 13% drop in third-quarter revenue. The company also issued a weak revenue forecast for the fourth quarter, attributing it to a "slow market environment."
Electronic Arts (EA)
Video game maker Electronic Arts reported net revenue of $1.91 billion in the fiscal second quarter, surpassing last year's $1.9 billion. The result also outperformed analysts' expectations of $1.8 billion. Moreover, EA projected fiscal 2024 net revenue between $7.3 billion and $7.7 billion, higher than the estimated $7.57 billion. EA shares rose by 5.8%.
Food delivery company DoorDash reported a smaller-than-expected third-quarter loss and a 24% increase in total orders, reaching 543 million, which exceeded analyst predictions. Additionally, revenue for the period rose by 27% to $2.2 billion. Consequently, shares of DoorDash surged by 9%.
The market showed promise for these stocks, with some experiencing positive trends while others faced a more challenging environment.
E.l.f. Beauty's Q2 Results Exceed Expectations
E.l.f. Beauty reported impressive fiscal second-quarter results, surpassing Wall Street estimates. Despite the challenging economic environment, the company's affordable cosmetic products continue to experience strong demand. As a result, E.l.f. Beauty has revised its full-year revenue expectations upwards, projecting a range of $896 million to $906 million, compared to the previous estimate of $851.6 million. This positive news has led to a 12% increase in the company's shares.
Roku Exceeds Third-Quarter Expectations
Roku's third-quarter revenue reached $912 million, surpassing both the previous year's figures and analyst estimates of $857 million. This outstanding performance has caused a 19% surge in the stock during premarket trading. Furthermore, Roku reported an increase of 2.3 million active accounts compared to the second quarter, totaling 75.8 million. For the fourth quarter, the streaming-media company expects to generate $955 million in revenue, outperforming the consensus estimate of $952 million. Additionally, Roku foresees adjusted earnings before interest, taxes, depreciation, and amortization of $10 million, a significant improvement compared to the projected loss of $52 million.
Etsy Faces Challenges in Fourth Quarter
Etsy experienced a 4% decline in its stock after the company issued a warning regarding a potential decrease in gross merchandise sales during the fourth quarter. CEO Josh Silverman acknowledged the challenging environment for consumer discretionary spending, expressing the tough situation facing the online-shopping site.
Novo Nordisk Reports Impressive Third-Quarter Results
Novo Nordisk saw a substantial increase in its third-quarter earnings and revenue, driven by the high demand for its weight-loss drugs. The drugmaker's U.S.-listed shares climbed 2.5%, further solidifying its success in the market.
Upcoming Earnings Reports
Several companies are scheduled to release their earnings reports on Thursday. Investors and analysts will closely monitor the performance of Apple, Eli Lilly, Moderna, Palantir Technologies, ConocoPhillips, Starbucks, Booking Holdings, Block, Regeneron Pharmaceuticals, Shopify, Monster Beverage, DraftKings, Coinbase Global, and Paramount Global Paramount Global.