Shares of SoFi Technologies (SOFI, Financial) soared in premarket trading as the company reported Q4 earnings and revenue that surpassed consensus estimates. The financial services company also provided an optimistic outlook for the year, expecting significant growth in its tech platform and financial services segments. SoFi anticipates its tech platform and financial services revenue to increase by at least 50%, with lending revenue projected to be 92%-95% of 2023 levels. The company's guidance for 2024 includes GAAP EPS of $0.07-$0.08 and adjusted EBITDA of $580M-$590M, exceeding analyst expectations. SoFi also forecasts a 30% year-over-year growth in membership.
ZIM Integrated Shipping Services (ZIM, Financial) saw its shares jump nearly 10% after an upgrade from Jefferies to a Buy rating. The brokerage firm cited a shift from cash burn to "significant" cash generation for the shipping company, thanks to rising spot rates and extended Red Sea diversions that are expected to tighten capacity. ZIM's high spot, high cost, and high leverage platform, previously a concern, now positions it to capitalize on the current market conditions.
iRobot (IRBT, Financial) shares plummeted by 20% following the mutual agreement with Amazon (AMZN, Financial) to terminate the planned $1.4 billion acquisition. The termination, due to regulatory hurdles, will result in a $94 million fee paid by Amazon to iRobot. Additionally, iRobot announced a workforce reduction of 31% and the departure of its CEO, Colin Angle. Amazon's shares saw a slight uptick of 0.3% in premarket trading.
Alaska Airlines (ALK, Financial) is under scrutiny after a part of one of its planes, manufactured by Boeing (BA, Financial), fell off after takeoff. Investigations suggest that bolts meant to secure the part were missing when the jet left Boeing's factory. This incident has raised concerns about potential lapses in Boeing's production processes at its Renton, Washington facility.
Morgan Stanley's consumer survey highlighted inflation as the primary concern for most people, with 59% worried about rising prices. Political divisiveness and household finances were also among the top concerns. The survey reflects consumer behavior and attitudes towards the current economic and political landscape.
Cardlytics (CDLX, Financial) announced a successful resolution to its dispute with Shareholder Representative Services LLC regarding the Bridg merger and earnout payments. Cardlytics agreed to a settlement involving a cash payment and issuance of common stock, and also reported preliminary Q4 revenue and adjusted EBITDA, indicating a positive outlook for FY 2023.
Unity Software (U, Financial) received a reaffirmation of its Buy rating from Bank of America, with expectations of faster growth and improved profitability. Despite recent challenges, the bank believes Unity is well-positioned to compete in the mobile game market and is on track to meet its $1 billion EBITDA target.
AbbVie (ABBV, Financial) was upgraded to Outperform by William Blair ahead of its Q4 earnings report. The upgrade reflects a positive valuation setup and confidence in the company's growth prospects, despite increased competition for its leading drugs.
Builders FirstSource (BLDR, Financial) was upgraded to Buy by Bank of America Securities, with expectations of profit growth driven by an increase in single-family home construction. The company is expected to benefit from a forecasted rise in housing starts in 2024.
Goldman Sachs predicts that the 2s10s Treasury yield curve will continue to steepen and exit inversion territory by the third quarter of 2024. The firm expects the Federal Reserve to cut interest rates, leading to a decline in the 2-year yield and a stabilization of the 10-year yield.
New Fortress Energy (NFE, Financial) reported a favorable ruling from U.S. Customs and Border Protection, allowing the transportation of LNG from its offshore Mexico facility to U.S. locations without violating the Jones Act. This development enables New Fortress to sell and deliver LNG to various U.S. markets, including Puerto Rico.
Oil prices experienced volatility after a drone strike by Houthi terrorists in Jordan killed three U.S. service members, raising geopolitical tensions. Brent and WTI crude prices fluctuated, reflecting the potential impact of the attack on global oil markets.
