Rick Smith, CEO of Axon Enterprises.
Adam Jeffery | CNBC
Discover the latest news in the stock market before the market opens on Wednesday.
WeWork — The stock plummeted by 25.7% after WeWork disclosed in an SEC filing that doubts exist regarding the company’s ability to sustain operations due to lower-than-expected membership rates. WeWork mentioned potential actions such as bankruptcy, restructuring, or debt refinancing. In premarket trading, the stock price, which had been below $1 since the start of this year, fell to $0.05.
Carvana — Online used-car retailer Carvana gained 7.4% in premarket trading. Carvana expects its adjusted EBITDA for the third quarter to exceed $75 million, surpassing prior guidance and analysts’ forecasts of $46.4 million according to StreetAccount. Short sellers racing to cover their bets have propelled the company’s stock price up over 850% this year. Additionally, Carvana announced a debt restructuring agreement in July.
Lyft — Shares of the ride-hailing company declined by nearly 6% during premarket trading after the release of its second-quarter earnings. Lyft’s revenue reached $1.02 billion, in line with analysts’ estimates from Refinitiv. Meanwhile, adjusted earnings per share amounted to 16 cents, surpassing estimates of a 1-cent loss per share.
Penn Entertainment — The entertainment and casino company witnessed a surge of over 15% in early morning trading following the announcement of a 10-year deal between Disney’s ESPN and Penn to establish ESPN Bet, a sports betting site. As part of the agreement, Penn will pay ESPN $1.5 billion in cash. Disney’s stock price increased by 1.8% after news of the deal.
Axon Enterprise — Shares of the military technology developer surged by 13.8% in premarket trading after reporting better-than-expected earnings and revenue for the second quarter. Axon’s earnings per share reached $1.11, surpassing analysts’ expectations of 62 cents according to StreetAccount. Revenue amounted to $374.6 million, exceeding analysts’ forecast of $350.5 million. JPMorgan upgraded the stock to outperform and set a $235 price target, suggesting a 34% upside.
Bumble — Dating platform Bumble declined by 2.8% even after beating expectations for the second quarter on both revenue and earnings. However, Bumble provided weak expectations for adjusted EBITDA in the current quarter.
DraftKings — Shares of the sports betting company fell approximately 4.6% after Disney-owned ESPN announced a partnership with its competitor Penn Entertainment for a gambling sportsbook.
Toast — Shares of the restaurant management software platform surged by 14% after the company reported better-than-expected earnings for the second quarter. Toast achieved earnings per share of 19 cents, surpassing the StreetAccount estimate of 1 cent per share. The company reported $978 million in revenue, surpassing expectations of $943.1 million.
Marqeta — Shares of the payments platform company jumped nearly 19% after Marqeta announced a four-year deal to continue serving Block’s CashApp. The company also reported mixed second-quarter results, with a loss of 11 cents per share on $231 million of revenue. Analysts surveyed by Refinitiv had expected a loss of 9 cents per share on $219 million of revenue.
Akamai Technologies — The cybersecurity company gained 6.4% in premarket trading after raising its full-year guidance and reporting second-quarter earnings that exceeded Wall Street’s expectations.
— Contributed reporting by CNBC’s Hakyung Kim, Yun Li, Alex Harring, and Jesse Pound.
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