Movers: Akamai, Bumble, Lyft, Marqeta, Penn Entertainment, Rivian, WeWork

Scott Peters
09 Aug, 2023
New York City

Lyft Inc declined 6.9% to $10.76 after the ride-hailing company released its quarterly results. 

Stock jumped after the company reported adjusted earnings per share of 16 cents and revenue of $1.02 billion, meeting estimates set by some analysts. 

But the stock turned lower after investors reassessed the company's fiscal fourth quarter revenue outlook which fell short of some analysts' estimates. 

Revenue increased 3% to $1.02 billion from $990.7 million and net loss shrank to $114.2 million from $377.2 million and diluted loss per share fell to 30 cents from $1.08 a year ago. 

Active riders in the second quarter rose 8.2% to 21.5 million from 19.9 million and average revenue per active rider fell 4.8% to $47.51 from $49.89 a year ago. 

Rivian Automotive Inc was nearly unchanged at $24.80 after the maker of electric vehicles narrowed its quarterly loss and revised higher its production target. 

Rivian said second quarter revenue jumped to $1.1 billion from $364 million and net loss shrank to $1.2 billion from $1.7 billion and diluted pre share declined to $1.27 from $1.89 a year ago. 

The company forecasted 2023 production target of 52,000 from the previous estimate of 50,000 and higher than 25,000 from a year ago. 

The company delivered 12,640 vehicles in the second quarter, sharply higher than 4,467 vehicles a year ago. 

WeWork Inc plunged 9.9% to 19 cents after the company said in an SEC filing that it may consider restructuring its debt including bankruptcy amid weak membership rates. 

Consolidated revenue in the second quarter rose to $844 million from $815 million and net loss shrank to $349 million from $577 million and diluted loss per share was 21 cents from 76 cents a year ago. 

Average revenue per physical member increased 4% to $502 in the second quarter and physical membership declined to 587,000 from 589,000 but occupancy rate rose to 72% from 70% a year ago. 

Company management is struggling to improve liquidity and profitability over the next year by cutting operating and capital expenditures, renegotiating lease payments and control churn rate and seek new capital through debt and securities sales. 

On May 5, 2023, the Company closed on its previously announced debt exchange and restructuring transactions. 

As of June 30, the company had $680 million of liquidity, consisting of $205 million of cash and $475 million of capacity under its delayed draw, first lien notes, of which $175 million were drawn in July.

PENN Entertainment Inc jumped 19% to $29.64 after the company signed a 10-year deal with ESPN to create ESPN Bet, a sports betting site. 

As a part of the deal, Penn agreed to pay ESPN $1.85 billion in cash. 

Bumble Inc decreased 1.8% to $17.67 after the online dating platform reported better-than-expected revenue and earnings in the second quarter. 

Total revenue in the second quarter increased to $259.7 million from $219.2 million and net income swung to $6.7 million from a loss of $3.4 million and diluted earnings per share was 5 cents compared to (3 cents) a year ago.  

However, the company's current quarter adjusted earnings outlook fell short of some investors. 

Bumble forecasted third quarter revenue between $274 million and $280 million and adjusted operating earnings between $71 million and $73 million. 

The company forecasted total 2023 revenue between $1.05 billion and $1.07 billion and adjusted operating earnings margin growth of at least 100 basis points. 

Marqeta Inc soared 15.9% to $5.75 after the payment processing company reported mixed quarterly results. 

Total processing volume in the second quarter surged 33% to $53.6billion from $40.4 billion a year ago. 

Revenue in the second quarter rose 24% to $231 million from $186.6 million and net loss expanded to $58.8 million from $44.4 million and net loss per share rose to 11 cents from 8 cents a year ago. 

The payment platform extended its deal with Block's Cash App card payment processing services for four more years. 

The company also struck a multi-faceted partnership deal with Brazil-based Fitbank to expand in the region and help other fintech companies to process payments. 

Akamai Technologies Inc soared 6.8% to $101.42 after the cyber security and internet infrastructure company reported better-than-expected second quarter earnings. 

Second quarter revenue increased 4% to $936 million from $903 million and net income rose 7% to $129 million from $137.8 million and diluted earnings per share fell to 84 cents from 85 cents a year ago. 

The company repurchased 1.6 million shares for an average price of $83.97 per share and a total of $137 million. 

The company also revised higher its full-year 2023 estimates and guided its third quarter revenue between $937 million and $952 million and full-year revenue between $3.765 billion and $3.795 billion.