Markets Defused aims to give an easy-to-understand and straightforward recap of the day’s most engaging stock market news.
- Arm outlook underwhelms traders
- Robinhood revenues see big crypto boost
- Airbnb stock slips on softer spring forecast
- Bud Light owner is shaking off boycott impact
Arm ‘smashed’ forecasts but stock slumped on softer outlook
Arm Holdings Plc's (NASDAQ:ARM) forecasts for its new financial year underwhelmed, despite the most recent quarter easily exceeding expectations.
Revenue in Arm’s fourth-quarter came in at $928 million, up from $633 million in the same period last year and comfortably above the $866 million predicted by analysts. Net income for the period totalled $224 million, meanwhile on a per share basis earnings (adjusted) for the quarter was reported at 36 cents, versus 30 cents forecast by Wall Street.
Looking to its current quarter, the first three months of its new financial year, Arm told investors it expects between $875 million and $925 million, with earnings predicted at 32 to 26 cents per share – which was still upbeat compared to the $857.5 million analyst forecast.
For the current financial year, however, a more cautious guidance of $3.8 billion to $4.1 billion for revenue, with the bottom-end undershooting the market’s consensus expectation of $3.99 billion.
Evidently, the reaction from traders shows just how high hopes have been pinned in the semi-conductor sector which has been lead by Nvidia and lots of AI-related buzz.
In New York, during ‘afterhours trading’, Arm shares were down $8.47 or 7.99% changing hands at $97.60.
Robinhood financial results boosted by crypto trading
Robinhood Markets Inc (NASDAQ:HOOD) was on the up in Wednesday’s late deals after reporting upbeat financials for its first quarter.
The performance comes amidst a recent revival in Bitcoin and cryptocurrency markets, along with soaring investor interest in the top-tier tech stocks – the so-called ‘Magnificent Seven’ which comprise: Nvidia, Meta, Tesla, Amazon, Google-parent Alphabet, Microsoft and Apple.
At the same time US stock benchmarks have also been pushing record highs, and the gold price has seen all-time record levels.
It is against this backdrop that Robinhood, an app that’s very popular with ‘retail’ investors, reported record quarterly revenue of $618 million, with crypto trading accounting for some $126 million of the tally.
It reported net income of $157 million for the quarter, versus a $511 million loss for the same period a year ago. On a per share basis, it equated to 18 cents.
The company comfortably beat Wall Street forecasts for the quarter, which were pitched at $549 million for group revenue and just 6 cents per share earnings.
Airbnb disappoints traders with spring outlook
Airbnb Inc (NASDAQ:ABNB, ETR:6Z1) stock fell in Wednesday’s late dealing with the property-rental app firm disappointing investors with softer-than-expected forward guidance.
The company claimed it was seeing ‘robust’ demand for travel, and pointed to the Paris Olympics among its potential catalysts for bookings this summer.
It said that it is expecting growth will accelerate in its third quarter, but for its second quarter (its current quarter) the company projected revenue between $2.68 billion and $2.74 billion – with the range coming in beneath Wall Street forecasts pitched at a $2.74 billion consensus.
Results for Airbnb’s first quarter featured $2.14 billion of revenue, up 18% against last year’s total of $1.82 billion, whilst the platform’s net income came in at $264 million, up from $117 million in 2023.
Earnings for the quarter arrived at $424 million and on a ‘per share’ basis those earnings equated to 41 cents.
Wall Street had anticipated a $2.06 billion revenue total for the quarter, and analysts had pencilled in earnings forecasts of $326 million and just 24 cents per share.
Bud Light owner is shaking off boycott impact
Anheuser-Busch InBev (NYSE:BUD) enjoyed a 4% rally in Wednesday’s trading session after the Bud Light parent comfortably beat market estimates, supported by higher beer prices which helped it score record revenues across the global group.
In the United States the culture-war hangover continues, with sales down 9%, but in Brazil and South Africa the brewer saw record numbers, meanwhile, in Europe, sales growth was reported in “high single-digits”.
Across the business margins are being boosted by recent falls in the prices of key raw materials like barley.
Similarly positive results were seen in recent days for rival beer groups Carlsberg and Heineken.