Stock futures were mixed on Thursday after disappointing retail sales data raised concerns about the pace of the U.S. economy’s slowdown.
Here are some of Thursday’s biggest stock movers:
Movers and Shakers
Winners Galore
Digital World Acquisition (NASDAQ:DWAC), a blank-check firm, surged 27% after the SEC approved its merger with Trump Media & Technology Group. The company expects to announce the date of the special stockholder meeting soon. The SPAC has been trying to acquire Trump’s media company for over two years.
The travel stock Tripadvisor (NASDAQ:TRIP) soared by 7% after its Q4 results surpassed market estimates on both top and bottom lines. The company reported adjusted EBITDA of $84M, or 22% of revenue, which came in better than expected due to a favorable channel mix and disciplined marketing spend. Chief Financial Officer Mike Noonan said, “In 2024, we will continue to prioritize our segment strategies which focus on long-term growth and profitability.”
Shake Shack’s (NYSE:SHAK) shares climbed 16% following the burger chain’s impressive Q4 performance. The company reported revenue and same-store sales that surpassed expectations. System-wide sales for the quarter jumped by 21.4%, while Same-Shack sales were up 2.8% from a year ago during the quarter, which exceeded the consensus expectation of +2%. Additionally, adjusted EBITDA came in at $31.4M, a significant increase from the $19.6M reported a year ago.
Super Micro Computer (NASDAQ:SMCI) shares rose over 6% as Bank of America initiated coverage on the artificial intelligence-focused server company. Analysts, led by Ruplu Bhattacharya, believe that AI-driven demand growth will benefit the company, with over 50% of revenues tied to GPUs. The market for AI servers is expected to grow at a 50% annual clip over the next three years, well above the 5.5% that the traditional server market has grown over the past 17 years. Super Micro has benefited from partnerships with Nvidia, AMD, and Intel for CPUs and GPU accelerators and has designed its own chassis and motherboard. The analysts believe that Super Micro’s ability to work with multiple new designs and technologies will serve it well as myriad AI-related processors debut in the next several years.
Despite missing the consensus mark in Q4 earnings due to industry challenges like weak demand and consumer reluctance to invest in alternative energy, SunPower’s (NASDAQ:SPWR) stock increased by 18% after securing $175M in new capital financing from TotalEnergies and Global Infrastructure Partners. CEO Peter Faricy and CFO Beth Eby emphasized the company’s focus on profitability and free cash flow, with SunPower expecting cash flow to be positive in the second half of 2024 and beyond.
Losses in the Mix
Despite beating earnings expectations in the second quarter and increasing dividends, Cisco’s (NASDAQ:CSCO) shares dropped by 5% after the announcement of weaker-than-expected guidance and plans for company-wide layoffs. Cisco anticipates Q3 adjusted EPS between $0.84 and $0.86, below the consensus of $0.92, and revenue in the range of $12.1B to $12.3B, much below the consensus of $13.09B. Additionally, Cisco provided FY2024 guidance, forecasting adjusted EPS between $3.68 and $3.74 vs. the consensus of $3.86, with revenue between $51.5B and $52.5B compared to the consensus of $54.41B. The company plans to lay off approximately 5% of its workforce to concentrate on growth areas, expecting to incur approximately $800M in charges related to the restructuring, primarily for severance and termination benefits.
Shares of Twilio (NYSE:TWLO) plunged by 13% following the company’s announcement of lower-than-expected revenue guidance for the current quarter. Twilio expects Q1 2024 revenue to be between $1.025 billion and $1.035 billion, falling short of the consensus estimate of $1.05 billion. The company also forecasts adjusted earnings per share to be in the range of $0.56 to $0.60, compared to a consensus of $0.54. CEO Khozema Shipchandler stated, “We enter 2024 from a position of strength, and the team is focused on further delivering on our customer engagement vision for our customers.”
Blink Charging (NASDAQ:BLNK) shares retreated 7%, giving back the 32% gain from the previous session, driven by strong Q4 revenue projections exceeding estimates. The builder of charging networks for electric vehicles anticipated 4Q revenue to surpass $42 million, exceeding the $34.3M consensus. Additionally, FY2023 revenue is projected to exceed $140M, surpassing its previously announced revenue target of $128M to $133M. CEO stated, “We are excited about our record-breaking fourth-quarter and full-year 2023 revenue growth. We saw strong demand for both our equipment and services. This is the result of consistent and systematic steps that we took to strengthen our product portfolio and service offerings, supported by our vertical integration strategy and dedicated customer service team.”
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