Stock markets are appropriately bidding shares higher in companies that posted strong revenue and guidance. They are dumping losers before their prospects worsen.
Winners
Block (SQ) is a winning stock today as it opens up by 7%. The fintech app firm expects 2024 adjusted EBITDA of $2.76 billion. In Q2, gross profit will be in the range of $2.165 billion to $2.185 billion. Its plans to invest 10% of its gross profit in bitcoin (BTC-USD) products is appealing. Investors may buy SQ stock and gain BTC exposure. Earlier in the week, PayPal (PYPL) posted quarterly results, adding to its uptrend momentum.
Zoetis (ZTS), a vaccine manufacturer for companion animals and livestock, posted revenue growing by 10.0% Y/Y to 42.2 billion. After raising its full-year 2024 revenue target to up to 10.5%, ZTS stock added 5.51% on Thursday. Expect the stock to return to the $200 level.
Losers
Markets punished speculators who bought Cloudflare (NET) stock before the earnings report. NET stock lost 13.8% last night despite posting revenue growth of 30.5% Y/Y to $378.6 million. Markets do not like the net loss of $35.54 million before adjustments that include $69.7 million in stock-based compensation.
The firm forecasts 60 to 61 cents a share in non-GAAP EPS in 2024.