Biggest stock movers today: SHOP, SMCI, LUMN, and more

Stock futures continued to edge higher on Wednesday as the Bank of Japan’s stance eased investor concerns about potential interest rate hikes.

Here are some of Wednesday’s biggest stock movers:

Biggest stock gainers

• Shopify (NYSE:SHOP) surged 22% after surpassing Q2 earnings reports with revenue growing about 21% Y/Y, or 25% adjusted for the sale of its logistics businesses. Gross merchandise volume rose 22% to $67.2B, surpassing the consensus of $65.7B. Monthly recurring revenue increased 25% to $169M, with Shopify Plus contributing significantly. Gross profit climbed 25% to $1B, with a gross margin of 51.1%, up from 49.3% last year, driven by the absence of logistics businesses’ dilutive impact and changes in pricing plans. Free cash flow reached $333M, up from $97M a year ago. For Q3, the company expects revenue growth at a low-to-mid-twenties rate, a gross margin increase of about 50 bps, and a free cash flow margin to be similar to 2Q24.
• Following mixed Q2 results, Lumen Technologies (NYSE:LUMN) stock skyrocketed over 45% in premarket trading on Wednesday, building on a 93% surge the prior day. While Lumen lowered its adjusted EBITDA forecast for 2024, it significantly boosted its free cash flow projection from $100M-$300M to $1.00B-$1.20B. This optimistic outlook follows the company’s recent announcement of $5B in new contracts, driven by advancements in artificial intelligence, coupled with potential $7B in additional sales to capitalize on the growing demand for AI-related services.
• Upstart Holdings (NASDAQ:UPST) stock surged more than 22% after the company reported better than expected Q2 results and issued strong guidance for Q3. CEO Dave Girouard attributed the company’s improvements to AI advancements, a revived funding supply, and operational efficiency. For Q3, the company anticipates revenue of $150M, above the consensus of $135.3M and adjusted EBITDA of -$5M vs. -$9.3M reported in Q2 and the Visible Alpha consensus of -$12.2M. Additionally, the company expects positive EBITDA in Q4.
• The New York Times (NYSE:NYT) shares soared 9% after exceeding Q2 expectations, driven by continued subscriber growth. The company added 300,000 digital subscribers in Q2, up from 210,000 in Q1, surpassing analyst expectations and bringing its total subscriber count to 10.84M. For Q3, the company expects subscription revenues to increase by 7% to 9%.

Biggest stock losers

• Super Micro Computer (NASDAQ:SMCI) shares slipped 7% after the artificial intelligence server company reported mixed FQ4 results. The company also announced a 10-for-1 stock split, effective October 1. For FY2025, the company expects to generate sales between $26B and $30B, above the consensus of 23.6B.
• Following mixed Q2 results, Airbnb (NASDAQ:ABNB) shares declined by about 16%. Despite achieving 11% Y/Y revenue growth, the adjusted EPS of $0.86 fell from $0.98 the previous year and missed the consensus estimate of $0.91. For Q3, the company expects an 8%-10% revenue increase to $3.67B-$3.7B, below the anticipated $3.84B, due to slower Y/Y growth in Nights and Experiences Booked compared to Q2. Latin America and Asia Pacific remain the fastest-growing regions, but there are signs of shorter booking lead times globally and declining demand from U.S. guests. The average daily rate (ADR) is projected to rise modestly year-over-year in Q3. Adjusted EBITDA is expected to match Q3 2023 nominally, but the adjusted EBITDA margin will likely decrease compared to Q3 2023.
• Despite a strong Q2 performance, Lyft (NASDAQ:LYFT) shares dropped nearly 12% as the company missed the gross bookings estimate. Q2 highlights included a 17% Y/Y increase in gross bookings, a 41% rise in revenue, and a positive free cash flow of $256.4M. Key metrics also showed positive trends, with Active riders up 10% and Rides up 15%. The company posted a net income of $5, up from a loss of $26.5M a year earlier. However, Lyft’s Q3 outlook disappointed investors with gross bookings projections between $4B-$4.10B vs. the consensus of $4.14B, an expected adjusted EBITDA range of $90M-$95M, and a decrease in adjusted EBITDA margin to 2.3% from 2.6% currently.