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Stock futures were mixed Thursday after disappointing retail sales data raised concerns about the pace of the U.S. economic slowdown.
Here are some of Thursday’s biggest stock moves:
Biggest Gains in Stocks
Taking over the digital world (NASDAQ:DWAC), a blank check company, increased by 27% after the SEC approved its merger with Trump Media & Technology Group. The company plans to announce the date of the extraordinary shareholders’ meeting soon. The SPAC has been trying to acquire Trump’s media company for over two years.
The Tripadvisor travel bag (NASDAQ: TRAVEL) increased by 7% after fourth-quarter results beat market estimates on both top and bottom lines. The company reported adjusted EBITDA of $84 million, or 22% of revenue, better than expected thanks to a favorable channel mix and disciplined marketing spending. Chief Financial Officer Mike Noonan said: “In 2024 we will continue to prioritize our segment strategies focused on long-term growth and profitability.”
Shake Shack’s (NYSE:SHAK) shares rose 16% following the burger chain’s strong performance in the fourth quarter. The company reported revenue and same-store sales that exceeded expectations. System-wide sales for the quarter increased 21.4%, while Same-Shack sales increased 2.8% from a year ago during the quarter, beating consensus expectations of +2%. Additionally, adjusted EBITDA was $31.4 million, a significant increase from the $19.6 million reported a year ago.
Supermicrocomputer (NASDAQ:SMCI) actions increased by more than 6% when Bank of America initiated coverage on the AI-focused server company. Analysts, led by Ruplu Bhattacharya, believe that AI-driven demand growth will benefit the company, with more than 50% of revenue tied to GPUs. The AI server market is expected to grow at an annual rate of 50% over the next three years, well above the 5.5% growth seen by the traditional server market over the past 17 years. Super Micro benefited from partnerships with Nvidia, AMD and Intel for CPU and GPU accelerators and designed its own chassis and motherboard. Analysts believe Super Micro’s ability to work with multiple new designs and technologies will be useful as it debuts myriad AI-related processors in the coming years.
Despite missing consensus in fourth quarter earnings due to industry challenges such as weak demand and consumer reluctance to invest in alternative energy, SunPower (NASDAQ:SPWR) action iincreased by 18% after securing $175 million in new capital funding 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 forecasting that it will be cash flow positive in the second half of 2024 and beyond.
Biggest stock losers
Despite beating earnings expectations in the second quarter and raising its dividend, Cisco (NASDAQ:CSCO) actions decreased by 5% after announcing weaker-than-expected guidance and plans for company-wide layoffs. Cisco expects third-quarter adjusted earnings per share of $0.84 to $0.86, below consensus of $0.92, and revenue of $12.1 billion to $12.3 billion, well below consensus. below consensus of $13.09 billion. Additionally, Cisco provided guidance for fiscal 2024, forecasting adjusted EPS of $3.68 to $3.74 versus consensus of $3.86, on revenue of $51.5 billion to $52.5 billion dollars versus the consensus of $54.41 billion. The company plans to lay off approximately 5% of its workforce to focus on growth areas, and expects to incur approximately $800 million in restructuring-related charges, primarily for severance and severance pay.
Twilio Shares (NYSE:TWLO) dropped by 13% following the company’s announcement of lower-than-expected revenue forecasts for the current quarter. Twilio expects first-quarter 2024 revenue to be between $1.025 billion and $1.035 billion, well below the consensus estimate of $1.05 billion. The company also expects adjusted earnings per share to be between $0.56 and $0.60, compared to a consensus of $0.54. CEO Khozema Shipchandler said: “We enter 2024 from a position of strength and the team is focused on further realizing our customer engagement vision for our customers.”
Flashing while charging (NASDAQ:BLNK) actions retreated by 7%, giving back a 32% gain from the previous session, led by strong fourth-quarter revenue projections that beat estimates. The builder of electric vehicle charging networks expects fourth-quarter revenue to top $42 million, beating the $34.3 million forecast. Additionally, revenue for fiscal 2023 is expected to exceed $140 million, exceeding the previously announced revenue target of $128 million to $133 million. The CEO said: “We are excited about our record fourth-quarter and full-year 2023 revenue growth. We have seen strong demand for both our equipment and our services. This is the result of consistent and systematic measures that we have adopted to strengthen our product portfolio and service offerings, supported by our vertical integration strategy and a dedicated customer support team.”