DigitalOcean's strong earnings and focused strategy on developer simplicity reveal a powerful growth model thriving in the shadow of cloud industry giants.
Leading edge card issuer Marqeta (NASDAQ: MQ) reported Q2 CY2025 results exceeding the market’s revenue expectations, with sales up 20.1% year on year to $150.4 million. Guidance for next quarter’s revenue was better than expected at $148.4 million at the midpoint, 1.8% above analysts’ estimates. Its GAAP loss of $0 per share was significantly above analysts’ consensus estimates.
Moving and storage solutions provider U-Haul (NYSE:UHAL) posted $1.63 billion of revenue in Q2 CY2025, up 5.3% year on year. Its GAAP profit of $0.73 per share was 4.3% above analysts’ consensus estimates.
Chip stocks are bouncing around in Wednesday's after-hours session after President Donald Trump announced plans to slap tariffs on semiconductor companies that aren't "building" in the U.S.
Pet company Central Garden & Pet (NASDAQ:CENT) missed Wall Street’s revenue expectations in Q2 CY2025, with sales falling 3.6% year on year to $960.9 million. Its non-GAAP profit of $1.56 per share was 9.3% above analysts’ consensus estimates.
Experiential tourism company Pursuit Attractions and Hospitality (NYSE:PRSU) reported Q2 CY2025 results topping the market’s revenue expectations, but sales fell by 69.2% year on year to $116.7 million. Its non-GAAP profit of $0.36 per share was 38.5% above analysts’ consensus estimates.
Shares of uniform rental provider Vestis Corporation (NYSE:VSTS) fell 7.4% in the afternoon session after the company reported disappointing third-quarter fiscal 2025 results that missed analyst expectations on both profit and revenue. The uniform and workplace supplies provider posted a net loss of one cent per share, reversing a profit from the same quarter last year and missing analyst estimates. Revenue fell 3.5% to $673.8 million, as customer losses outpaced new business wins. The financial pressure extended to profitability and cash flow, as gross profit dropped by 10.1% and free cash flow decreased significantly. These operational struggles also impacted the company's financial health, with its net leverage ratio increasing.
Shares of multinational media and entertainment corporation Paramount (NASDAQ:PARA)
fell 6.5% in the afternoon session after Needham advised investors to “move to the sidelines” due to uncertainty surrounding its upcoming merger with Skydance Media. The investment firm Needham reiterated its “Hold” rating, pointing to a lack of clarity on the company's ownership, leadership, and strategy following its merger with Skydance Media. This warning followed Paramount's mixed second-quarter results where revenues missed expectations.
Shares of B2B travel services company Global Business Travel (NYSE:GBTG)
jumped 13.2% in the afternoon session after the company reported second-quarter financial results that surpassed expectations and raised its full-year guidance. The company's revenue increased 1% year-over-year to $631 million, while adjusted EBITDA grew 4% to $133 million. In another positive development, the U.S. Department of Justice dismissed its lawsuit that challenged the acquisition of CWT. The strong performance prompted an analyst at Deutsche Bank to raise the price target on the stock while the firm maintained a 'Buy' rating. Management also announced plans to activate a $300 million share buyback program.
Shares of computer processor maker AMD (NASDAQ:AMD)
fell 6.7% in the afternoon session after its second-quarter earnings report showed that a large inventory charge related to U.S. export controls on its data center chips overshadowed record revenue. The semiconductor company posted a 32% year-over-year revenue jump to a record $7.7 billion. However, AMD also revealed an $800 million hit due to restrictions on its MI308 chip shipments to China. This charge pressured the company's profitability and caused its adjusted earnings per share of $0.48 to miss analyst expectations. The export curbs also squeezed the company's gross margin, which narrowed significantly from the previous year. Investors reacted negatively to the earnings miss and margin pressure, despite the strong sales figures.
Nvidia stock down as AMD and Super Micro disappoint, but still trading at a 3% discount to 52-week high. AMD beats revenue but misses earnings, Super Micro reports lower guidance. Chinese automakers ditching Nvidia chips.
The US stock market is currently experiencing a period of heightened volatility, with major indices showing mixed signals as investors grapple with economic uncertainties, evolving corporate earnings, and the lingering impact of trade policies. While the broader market has demonstrated resilience in recent months, certain key sectors, notably Technology, Utilities,
Shares of insurance holding company Kemper (NYSE:KMPR) fell 21.2% in the afternoon session after the company posted disappointing second-quarter financial results and received a subsequent analyst downgrade. The insurance provider reported adjusted earnings of $1.30 per share, which fell short of the $1.52 consensus estimate. The company attributed the earnings shortfall primarily to unfavorable developments in its commercial auto business. In response to the results, analysts at Piper Sandler downgraded the stock to "Underweight" from "Overweight" and slashed their price target to $50 from $75. The firm expressed concerns about Kemper's growth in policies and its underwriting profitability, suggesting that the company's near-term earnings may have peaked.
Shares of genetic testing company Myriad Genetics (NASDAQ:MYGN)
jumped 36.4% in the afternoon session after the company reported strong second-quarter earnings that surpassed analyst expectations and raised its full-year revenue forecast. The genetic testing firm announced revenue of $213.1 million, which sailed past analyst estimates of around $202 million. It also posted an adjusted profit of $0.05 per share, a significant turnaround from the minor loss that experts had predicted. A key driver for this outperformance was the company's hereditary cancer testing business, which grew 9% compared to the previous year. Bolstered by this momentum, Myriad Genetics lifted its full-year revenue guidance to a range of $818 million to $828 million and secured a new $200 million credit facility to fund its growth.
The latest corporate earnings season has sent ripples of concern through the financial markets, as several high-profile companies, including Walt Disney (NYSE: DIS), Advanced Micro Devices (NASDAQ: AMD), and Snap (NASDAQ: SNAP), have reported results that fell short of Wall Street's often-optimistic expectations. These misses are not isolated incidents but
U.S. stocks rebounded sharply on Wednesday, fully erasing last Friday's losses, as upbeat corporate earnings and renewed investor optimism outweighed concerns over escalating trade tensions.
As earnings season continues to wind down, the big event yesterday evening was Advanced Micro Devices (AMD), one of my larger short positions. This stock had in the span of just three months more than doubled in price.
