Connect with us
  • tg

Uncategorized

Upstart stock plunges again after admitting it won’t hit disappointing forecast

letizo News

Published

on

Upstart Holdings Inc. disappointed investors with its guidance in May, and faces Wall Street’s wrath once again after admitting Thursday it came up well short of the mark.

Upstart
UPST,
+1.96%

disclosed late Thursday that executives expect second-quarter losses and revenue to come in well short of targets they forecast in May, when the company’s disappointing forecast led to shares being cut by more than half in a single session. After disclosing preliminary results, shares dove more than 14% in after-hours trading Thursday.

Upstart, which lends money while leveraging artificial intelligence to make loan decisions, revealed that revenue for the second quarter is now expected to be roughly $228 million, after originally guiding for sales of $295 million to $305 million. Analysts had been estimating second-quarter sales of $335 million before Upstart provided guidance, and had since brought down that target to $298 million, according to FactSet.

The lending company’s second-quarter loss is now expected to be $27 million to $31 million, after executives previously guided for breakeven to a loss of $4 million. Analysts polled by FactSet still expected Upstart to produce a small profit of less than $1 million despite that guidance, a reduction from expectations of $24 million in profit before the guidance.

For more: Upstart earnings highlighted ‘perfect storm of headwinds’

“Our revenue was negatively impacted by two factors approximately equally,” Chief Executive Dave Girouard said in a prepared statement. “First, our marketplace is funding-constrained, largely driven by concerns about the macroeconomy among lenders and capital market participants. Second, in Q2, we took action to convert loans on our balance sheet into cash, which, given the quickly increasing rate environment, negatively impacted our revenue.”

Upstart went public in December 2020, pricing its initial batch of shares at $20 apiece. The stock has never traded that low on the public markets, however — it opened at $26 on the first day of trading and eventually moved as high as more than $400 last fall.

Those gains have disappeared. After its May earnings report and forecast, Upstart shares dove more than 56% in a single session, then fell another 16.7% the following day to hit a 52-week low of $25.43.

Shares have bounced back a bit since, topping $50 at times in June, but they closed Thursday at $33.74 and were trading for less than $29 in extended trading following the news. Shares have declined 77.7% so far this year through Thursday’s close, as the S&P 500 index
SPX,
+1.50%

has declined 18.1%.

Executives expect to fully report second-quarter financial results on Aug. 8.

Uncategorized

BofA Securities maintains Amazon.com at ‘buy’ with a price target of $154.00

letizo News

Published

on

Continue Reading

Uncategorized

Six people in critical condition, one still missing after Paris blast – prosecutor

letizo News

Published

on

5/5

© Reuters. French firefighters and rescue forces work after several buildings on fire following a gas explosion in the fifth arrondissement of Paris, France, June 21, 2023. REUTERS/Gonzalo Fuentes

2/5

PARIS (Reuters) – Six people remained in a critical condition and one person was believed still missing on Thursday, one day after a blast ripped through a street near Paris’ historic Latin Quarter, the city’s public prosecution office said. “These figures may still change,” prosecutor Maylis De Roeck told Reuters in a text message, adding that around 50 people had been injured in the blast, which set buildings ablaze and caused the front of one to collapse onto the street. Of two people initially believed missing, one has been found in hospital and is being taken care of, the prosecutor said, adding: “Searches are ongoing to find the second person.” Authorities have not yet said what caused the explosion, which witnesses said had followed a strong smell of gas at the site. The explosion led to scenes of chaos and destruction in the historic Rue Saint Jacques, which runs from the Notre-Dame de Paris Cathedral to the Sorbonne University, just as people were heading home from work. It also destroyed the facade of a building housing the Paris American Academy design school popular with foreign students. Florence Berthout, mayor of the Paris district where the blast occurred, said 12 students who should have been in the academy’s classrooms at the time had fortunately gone to visit an exhibition with their teacher.
“Otherwise the (death toll) could have been absolutely horrific,” Berthout told BFM TV. She said three children who had been passing by at the time were among the injured, although their lives were not in danger.

Continue Reading

Uncategorized

4 big analyst cuts: Alcoa & DigitalOcean shares drop on downgrades

letizo News

Published

on

© Reuters.

Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Alcoa, DigitalOcean, Teleflex, and Xcel Energy.InvestingPro subscribers got this news in rapid fire. Never be left in the dust again.Alcoa stock drops on Morgan Stanley downgrade Alcoa (NYSE:) shares fell more than 3% pre-market today after Morgan Stanley downgraded the company to Underweight from Equalweight and cut its price target to $33.00 from $43.00, as reported in real time on InvestingPro.The firm sees a significant decline in consensus estimates, and as negative earnings revisions materialize, it believes the stock will face downward pressure and underperform.The analyst’s estimates for EBITDA in Q2, 2023, and 2024 are substantially lower than the consensus. The stock is currently trading above its historical average. The firm said its downward revisions in earnings estimates and price target are attributed to the company’s high operating leverage to aluminum prices.DigitalOcean stock plunges on downgradePiper Sandler downgraded DigitalOcean (NYSE:) to Underweight from Neutral with a price target of $35.00. As a result, shares plunged more than 5% pre-market today.The company reported its last month, with revenue beating the consensus estimate, while EPS coming in worse than expected. Furthermore, the company provided a strong outlook, which was above the Street estimates.2 more downgradesTeleflex (NYSE:) shares fell more than 3% yesterday after Needham downgraded the company to Hold from Buy, noting that UroLift expectations may still be too high.According to Needham, their checks indicate that urologists are reducing their use of UroLift due to its retreatment rates, reimbursement cuts, and increasing use of competing procedures. This is also supported by their Google Trends data analysis, which indicates decreasing search interest in UroLift.BMO Capital downgraded Xcel Energy (NASDAQ:) to Market Perform from Outperform and cut its price target to $64.00 from $69.00 to reflect the lower-than-expected terms of the company’s regulatory settlement in Colorado.Amid whipsaw markets and a slew of critical headlines, seize on the right timing to protect your profits: Always be the first to know with InvestingPro.Start your free 7-day trial now.

Continue Reading

Trending

©2021-2024 Letizo All Rights Reserved