Market Morning Update: Key Company Movements
As trading activity kicks off, several companies have made headlines due to their latest earnings reports and outlooks. Below is a summary of notable stock movements and earnings announcements affecting these firms:
Key Company Updates
MongoDB Faces Sharp Decline
Database software developer MongoDB experienced an 18% drop in share price following a disappointing forecast for fiscal year 2026. The company projects adjusted earnings per share to be between $2.44 and $2.62, falling short of the $3.34 per share forecasted by analysts. Additionally, projected revenue ranges from $2.24 billion to $2.28 billion, compared to the consensus estimate of $2.32 billion.
Marvell Technology Reports Modest Earnings
Marvell Technology saw its shares decrease by 18% despite exceeding earnings expectations for the fourth quarter, reporting adjusted earnings of 60 cents per share on revenue totaling $1.82 billion. Analysts had anticipated earnings of 59 cents per share on $1.80 billion in revenue. Barclays noted that elevated expectations due to positive results from other suppliers in Amazon’s supply chain may have contributed to the fallout.
JD.com Surges on Solid Earnings
In contrast, shares of JD.com, a Chinese e-commerce giant, rose by 5% after delivering fourth-quarter earnings and revenue that outpaced Wall Street projections. Furthermore, JD.com’s board approved a cash dividend for the fiscal year ending December 31, 2024, further bolstering investor confidence.
Zscaler Rises After Positive Report
Zscaler, a cloud security firm, experienced a 3% increase in share value following its fiscal second-quarter results. The company reported adjusted earnings of 78 cents per share on revenue of $648 million, outperforming analysts’ expectations of 69 cents per share on revenue of $636 million.
Challenges for Rigetti Computing
Conversely, Rigetti Computing saw its stock drop over 12% after its fourth-quarter results fell short of analyst expectations. The company reported a loss of 68 cents per share on revenue of $2.3 million, while analysts had predicted a loss of only 7 cents per share and revenue of $2.5 million.
Retail Sector Updates
Macy’s Revenue Misses Expectations
Macy’s shares declined by 3% as the retailer’s fourth-quarter revenue of $7.77 billion did not meet the anticipated $7.87 billion. The company also provided a weak outlook for the upcoming fiscal year, projecting adjusted earnings between $2.05 and $2.25 per share, lower than the $2.29 per share that analysts were expecting.
Positive Growth for Veeva Systems
Despite the mixed news in the retail sector, Veeva Systems shares increased by over 5.5% following strong fourth-quarter earnings and revenue that exceeded analyst predictions. The company also issued optimistic guidance for the current quarter.
Grindr’s Loss Impacts Shares
Grindr, the social networking and dating app for the LGBTQ community, witnessed shares decrease by more than 8% after announcing a full-year net loss of $131.0 million—significantly larger than the $55.8 million loss experienced the previous year.
Other Notable Movements
Amazon and Alibaba Trends
Shares of Amazon retreated over 1.8% after gaining 2.2% in the previous session, reflecting a downward week-on-week trajectory. On the other hand, shares of Alibaba increased by 1% following the unveiling of an AI reasoning model expected to compete with DeepSeek’s offerings.
Victoria’s Secret Guidance Lowers Optimism
Victoria’s Secret experienced a more than 4% share drop after the retailer issued guidance suggesting first-quarter revenues would range from $1.3 billion to $1.33 billion, compared to the $1.39 billion anticipated by analysts. The company cited economic uncertainties and consumer confidence shifts as contributing factors.
Overall, today’s market reflects a mix of optimism and caution as companies navigate challenging economic conditions while striving to meet or exceed market expectations.
