Wall Street’s main stock indexes were a mixed bag after yesterday’s selloff and as investors weighed the prospects of more fiscal relief and pondered over inflation risks.
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The tech-heavy Nasdaq Composite Index fell 1.3% and the S&P 500 Index retreated 0.2%. The Dow Jones Industrial Average appreciated 0.5%.
Lyft jumped almost 8% after the ride-hailing company recorded its best week in terms of ride volume since the outbreak of the coronavirus pandemic. Specifically, Lyft reported that rideshare volume in the week ending Feb. 28 was the company’s best week since March 2020. Average daily ride volume in February rose 4% month-over-month compared to average daily rides volume in January. As a result, Lyft now expects first quarter ride volume to decline 1.2% quarter-on-quarter, an improvement from the 4% drop forecasted previously. Lyft revised its outlook and now projected an adjusted EBITDA loss of $135 million for the first quarter of 2021 versus the prior outlook of a loss of between $145 and $150 million.
In corporate earnings news, FuboTV plunged 14% as the sports television streaming platform’s loss widened in the fourth quarter. The company reported a 4Q loss per share of $2.47 that widened from the loss per share of $1.07 incurred during the same quarter last year. Analysts had expected a loss of $0.85 per share. Meanwhile, FuboTV reported its strongest 4Q sales in its history of $105.1 million that topped consensus estimates of $93.9 million. “Our record 547,880 paid subscribers streamed more sports, news and entertainment content than ever before. Building on this quarter and year, we remain focused on continued innovation and are excited about our growth opportunities for 2021, including the ongoing expansion of our advertising business and the development of our own sportsbook,” FuboTV’s CEO David Gandler said.
Ross Stores posted disappointing fourth-quarter results pushing its shares down 4%. Additionally, 1Q earnings guidance fell short of analysts’ expectations. Ross Stores reported 4Q earnings of $0.67, which declined 47.7% year-over-year and fell short of analysts’ estimates of $1 per share due to lower sales and operating margins. Revenues declined 3.7% to $4.25 billion in 4Q, which lagged the consensus estimate of $4.27 billion. Comparable store sales declined 6% as pandemic-led restrictions negatively affected the holiday selling season. The company’s CEO Barbara Rentler, said, “the upsurge of the virus resulted in lower traffic, especially in California, our largest state, where we were subject to more stringent occupancy and operating hour restrictions.”
Ambarella climbed more than 4% after reporting better-than-expected Q4 results. Adjusted earnings of $0.14 per share beat analysts’ estimates of $0.08, while revenues increased 9% to $62.1 million and exceeded consensus estimates of $57.7 million. The company forecasted Q1 revenues of between $67 million and $70 million, much higher than analysts’ expectations of $56.2 million.
In deal news, Las Vegas Sands announced the sale of its Las Vegas real estate properties and operations, for an aggregate $6.25 billion, as the casino operator shifts investments to Asia and pursues new growth prospects. The casino operator has inked agreements to sell properties including the Venetian Resort Las Vegas and the Sands Expo and Convention Center. Under the terms of the deal, funds managed by affiliates of Apollo Global Management, will buy subsidiaries that hold the operating assets and liabilities of the Las Vegas business for about $1.05 billion in cash and $1.2 billion in seller financing. VICI Properties Inc. will acquire subsidiaries that hold the real estate and real estate-related assets of the Venetian for about $4 billion in cash. Shares rose 1.7%.
In healthcare news, shares of KemPharm popped 50% after the US Food and Drug Administration (FDA) approved its treatment for attention deficit hyperactivity disorder (ADHD) in patients age six years and olderr. Specifically, the FDA approved KemPharm’s New Drug Application (NDA) for Azstarys, formerly referred to as KP415, a once-daily product for the treatment of ADHD. Following the FDA decision, Corium, a portfolio company of GPC, will lead the commercialization of Azstarys, and expects to make the treatment available in the US as early as in the second half of 2021.
