Spotify Surprises with Quarterly Profit
Shares of Spotify soared by 10.4% after the music streaming company reported a surprise profit in the third quarter, its first quarterly profit in over a year. The company attributed the profit of €65 million euros to cost-cutting measures, including lower market spend and layoffs, as well as increased subscription costs.
Coca-Cola Exceeds Expectations
Coca-Cola’s stock climbed 2.9% as the soda maker surpassed analysts’ expectations in the third quarter. The company earned 74 cents per share, adjusted, on revenue of $11.91 billion, beating estimates of 69 cents per share on $11.44 billion in revenue. Coca-Cola also raised its outlook.
DraftKings Receives Upgrade
DraftKings saw a 3.7% increase in its stock price following an upgrade to buy from neutral by MoffettNathanson. The firm highlighted DraftKings’ better-than-expected finances and outperforming revenue as reasons for the upgrade.
General Electric Beats Expectations
General Electric’s stock rose by 6.5% after surpassing Wall Street expectations for both earnings per share (EPS) and revenue in the third quarter. The industrial company also raised its full-year guidance, citing increased demand within its aerospace business.
Positive Earnings Reports from Tech Giants
Technology stocks such as Alphabet, Snap, and Microsoft experienced gains ahead of their earnings reports scheduled after the market closes. Snap’s stock climbed over 2%, while Google parent Alphabet saw a nearly 1.7% increase. Microsoft’s stock was up about 0.4%.
Bitcoin Breakout Boosts Coinbase
A breakout in the price of bitcoin led to a 6.3% boost in Coinbase’s stock and pushed other crypto equities higher. Bitcoin proxy Microstrategy gained 12.6%, while bitcoin miners Marathon Digital and Riot Platforms advanced more than 11% and 10%, respectively. Other trading platforms, including Robinhood and Block, also experienced gains.
Apollo Capital Commits Financing to Redfin
Redfin’s stock surged by 5% after Apollo Capital and affiliates agreed to provide up to $250 million in financing to the real estate brokerage through a loan. This agreement extends the timing of Redfin’s debt maturing into 2028.
TrueBlue Misses Expectations
Workforce solutions provider TrueBlue tumbled by 21.7% after posting a weak third-quarter report and providing lower-than-expected guidance for the current quarter. The company failed to meet consensus estimates from analysts on both revenue and earnings.
Agilysys Beats Expectations
Hospitality software developer Agilysys saw a surge of 25.4% in its stock price after surpassing earnings and revenue expectations in its latest quarter. The company also raised its full-year revenue guidance.
Braze Receives Upgrade
Costumer engagement stock Braze rose by 3.4% following an upgrade to buy from neutral by D.A. Davidson. The firm cited resilient growth and a move towards profitability as reasons for optimism about the stock.
The Trade Desk Receives Buy Rating
Shares of advertising technology company The Trade Desk advanced by 3.9% after Loop Capital initiated coverage with a buy rating. Loop Capital believes the company has a strong long-term growth story.
Positive Outlook for Planet Fitness
Gym chain Planet Fitness gained 2.9% after being named a fresh pick by Baird. The investment firm believes the stock has the potential for compelling upside if management can improve unit economics and drive growth starting in 2025.
Criteo Receives Buy Rating
Advertising technology stock Criteo traded 3.4% higher after KeyBanc initiated coverage with a buy rating. KeyBanc highlighted the company’s progress in the retail media space as a positive factor.
Barclays Upgrades Rio Tinto
Metal and mining stock Rio Tinto climbed 3.4% following an upgrade to overweight from equal weight by Barclays. The bank believes that the company’s shares are at an attractive level.
FMC Downgraded by Morgan Stanley
Chemical manufacturer FMC saw a decline of 3.5% after being downgraded to equal weight from overweight by Morgan Stanley. The bank expressed concerns about potential slowing sales growth for FMC.
JPMorgan Upgrades PVH
Apparel stock PVH experienced a 3.6% increase after JPMorgan upgraded the company to overweight from a neutral rating. The upgrade came as PVH focuses on enhancing desirability for its Calvin Klein and Tommy Hilfiger brands and implements foundational changes.
Hot Take: Mixed Results in Midday Trading
In midday trading, several companies made headlines with their quarterly earnings reports. Spotify surprised investors with its first quarterly profit in over a year, while Coca-Cola exceeded expectations. General Electric, 3M, and Agilysys also beat analysts’ forecasts, leading to stock price increases. However, Barclays reported a decline in profit, causing its U.S.-listed shares to tumble. The technology sector experienced gains as investors prepared for earnings reports from Alphabet, Snap, and Microsoft. Bitcoin’s breakout led to a boost in Coinbase’s stock and other crypto equities. Redfin received financing commitments, while TrueBlue and Hexcel disappointed with weak results. Overall, the midday trading session showcased a mix of positive and negative performances across different sectors.
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