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Today's News
The U.S. Federal Reserve enacted a quarter-point interest rate cut, bringing the federal funds rate to 4.50%-4.75%. This move aligns with the Fed's dual mandate of balancing employment and inflation risks. Fed Chair Jerome Powell affirmed that the recent election results, which saw Donald Trump return to the presidency, would not influence monetary policy. The decision follows a previous 50 basis point cut in September, reflecting ongoing efforts to manage economic growth and inflation.
Rivian Automotive (RIVN, Financial) saw a slight uptick in its stock price after reporting its third-quarter results. Despite a 35% drop in revenue to $874 million due to production disruptions and a challenging consumer environment, the company is working to resolve a component shortage affecting its Enduro motor system. Rivian produced 13,157 vehicles and delivered 10,018 in Q3. The company's adjusted EBITDA improved to -$757 million from -$902 million a year ago.
Vistra (VST, Financial) shares rose 7.8% after the company reported a 54% year-over-year revenue increase to $6.28 billion for Q3, surpassing analyst expectations. The company raised its full-year profit guidance and authorized an additional $1 billion in stock buybacks. Vistra is also in discussions to upgrade nuclear plants to boost power output, reflecting its strategic focus on sustainability and growth.
Arista Networks (ANET, Financial) experienced a 6% rise in its stock as it reported better-than-expected third-quarter results and announced a stock split. The company's revenue increased by 20% year-over-year to $1.81 billion, driven by cloud computing and AI investments. Arista's strong performance underscores its leadership in next-generation data centers.
Airbnb (ABNB, Financial) rallied in post-market trading following a Q3 earnings report that exceeded expectations. The company's gross booking value rose by 10% year-over-year to $20.1 billion, driven by increased nights and experiences booked. Revenue also saw a 10% increase to $3.73 billion, despite a drop in net income due to previous tax asset adjustments.
Pinterest (PINS, Financial) stock fell 15% after hours despite beating Q3 financial expectations. Revenues grew 18% to $898 million, and non-GAAP earnings per share rose to $0.40. However, concerns over future guidance and tougher comparisons led to investor apprehension, impacting the stock's performance.
Block (SQ, Financial) saw an 11% decline in after-hours trading following soft Q4 guidance and a Q3 revenue miss. The company expects Q4 adjusted EBITDA of $725 million, below analyst estimates, and continues to target long-term growth objectives. Despite matching EPS expectations for Q3, the company's outlook weighed on investor sentiment.
CloudFlare (NET, Financial) shares dropped 9.05% despite reporting a Q3 Non-GAAP EPS of $0.20, beating estimates. Revenue increased by 28.2% year-over-year to $430.1 million. The company's financial outlook for the fourth quarter anticipates continued revenue growth, though operational losses remain a concern for investors.
AFFIRM (AFRM, Financial) reported a Q1 GAAP EPS of -$0.31, surpassing expectations by $0.03. Revenue increased by 40.7% year-over-year to $698.5 million. Despite the positive earnings surprise, shares fell by 4.19% as investors weighed the company's financial outlook and strategic initiatives.
DraftKings (DKNG, Financial) reported a Q3 Non-GAAP EPS of -$0.17, exceeding expectations by $0.07. However, revenue of $1.1 billion fell short of estimates, leading to a revision in its fiscal year 2024 revenue guidance. The company remains optimistic about future growth, projecting significant revenue increases for fiscal year 2025.
GigaCloud Technology (GCT, Financial) posted impressive Q3 results, with Non-GAAP EPS of $1.15 beating estimates by $0.48. Revenue surged by 70.2% year-over-year to $303.32 million. The company's marketplace growth and increased active buyers contributed to its strong financial performance.
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