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Coffee With Greta: Shaking It Off

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DJIA Futures: +98 (+0.3%)

SPX Futures: +22 (+0.4%)

NASDAQ Futures: +98 (+0.6%)

Good morning friends!

Futures are rising as traders attempt to shake off Tuesday’s inflation-fueled tumble.

Let’s get right to it!

Airbnb Slips After Earnings

Airbnb (ABNB) shares are down 4.2% ahead of the open despite beating Q4 revenue expectations. 

Here’s how the vacation rental company’s results compared to analysts’ estimates: 

  • Loss per share: $0.55, not comparable to estimates
  • Revenue: $2.22 billion vs $2.16 billion expected

Nights of accommodation and experiences booked rose 12% year over year to 98.8 million. 

Airbnb said it expects that growth rate to moderate in Q1. 

The company forecast Q1 revenue between $2.03 billion and $2.07 billion, up 12% to 14% from a year ago. 

Lyft Surges On Q4 Beat, Strong Guidance

Lyft (LYFT) shares are rallying 21.9% in premarket trade after beating Q4 expectations and issuing better-than-expected guidance. 

Here’s how the ride-hailing service’s results compared to analysts’ estimates: 

  • Adjusted EPS: $0.18 vs $0.08 expected
  • Revenue: $1.22 billion, as expected

Revenue increased 4% year over year while gross bookings jumped 17% to $3.7 billion. 

Lyft initially made a mistake in its earnings press release, saying it expected 5% margin growth in 2024. 

That prompted the stock to surge more than 60% in after-hours trade on Tuesday.

But the CFO corrected that mistake during the earnings call, saying they expect 0.5% growth. 

The adjusted profit margin as a percentage of bookings is anticipated to be 2.1% this year vs 1.6% in 2023. 

Lyft expects gross bookings in Q1 to be between $3.5 billion and $3.6 billion, beating expectations for $3.46 billion. 

Robinhood Soars On Surprise Profit

Robinhood (HOOD) shares are up 14.9% ahead of the open after reporting a surprise profit in Q4. 

Here’s how the online brokerage’s results compared to analysts’ estimates: 

  • EPS: $0.03 vs $0.01 loss expected
  • Revenue: $471 million vs $455 million expected

Monthly active users rose to 10.9 million from 10.3 million in Q3. 

Average revenue per user also rose to $81 from $80. 

Robinhood cited those metrics as signs that retail traders are returning to the market. 

Mortgage Demand Drops As Rates Surge

Homebuyers pulled back last week as mortgage rates jumped higher. 

The Mortgage Bankers Association reported total application volume dropped 2.3% last week from the previous week. 

Purchase applications dropped 3% weekly and 12% year over year. 

Refinance applications fell 2% weekly and were still up 12% compared to the same week a year ago. 

The decrease in activity came as the average 30-year fixed contract rate rose to 6.87% from 6.80%, the highest since early December.

Rates have since pushed back above 7% this week after the hotter-than-expected CPI data on Tuesday.

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