SNAP, ARM, FIG, LYFT and more

Key Market Moves: What SNAP, ARM, FIG, and LYFT Mean for Investors Today

Watching after-hours trading is like checking the scoreboard after a big game—what happens can shape the next day’s play for investors. When companies report good or bad news after the market closes, it can cause big jumps or drops in their stock prices, which affects portfolios and even whole sectors.

Big Winners: Companies on the Rise

  • Snap: Shot up 26% after announcing a $500 million buyback and strong revenue guidance. Plus, AI startup Perplexity will pay Snap $400 million to bring new search tools to Snapchat.
  • Arm Holdings: Rose 3% after beating profit and revenue estimates, earning 39 cents per share on $1.14 billion in revenue. Their next quarter looks even stronger.
  • Figma: Up nearly 6% after beating revenue forecasts and raising its outlook for 2025 to over $1 billion.
  • Lyft: Climbed 3% on better-than-expected profits—11 cents per share versus the expected 8 cents.
  • Dutch Bros: Gained 4% after earnings and revenue topped forecasts. They also raised their full-year outlook, a good sign for growth.
  • Applovin: Jumped 6% after strong quarterly results, with $1.16 billion in adjusted earnings and a positive outlook for the next quarter.
  • Devon Energy: Up 1% after beating both earnings and revenue estimates, reporting $1.04 per share and $4.33 billion in revenue.

Bears Bite Back: Companies Falling

  • e.l.f. Beauty: Dropped over 22% despite beating profit estimates. Revenue missed forecasts and their yearly sales outlook disappointed investors.
  • Fortinet: Fell 11% even after beating earnings expectations, due to lowering its full-year sales guidance.
  • Hubspot: Slumped 12% despite beating both earnings and revenue estimates. Investors may be worried about future growth.
  • DoorDash: Plunged 15% after missing profit estimates, though revenue was higher than expected.
  • Duolingo: Sank 17% even with better-than-expected revenue and a raised annual outlook. Investors were spooked by weak fourth-quarter booking estimates.

Mixed Moves: Not All Good or Bad

  • Robinhood: Slipped 2% even after stronger earnings and revenue. The stock is still up over 470% in the past year, which might make investors cautious about more gains.
  • Qualcomm: Fell about 2% despite beating expectations. Their outlook for next quarter is solid, but investors may have wanted more.
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Why This Matters for Investors

After-hours trading can be unpredictable. A company might beat expectations but still see its stock drop if investors worry about the future. Or, a positive announcement—like Snap’s buyback—can send shares soaring. These moves can impact not just individual stocks, but entire sectors like tech, energy, and consumer goods.

For example, according to a Nasdaq study, after-hours price changes often predict the next day’s market direction, especially after big earnings surprises.

Pros: Reasons for Optimism

  • Strong earnings can signal healthy companies and sectors.
  • Buybacks, like Snap’s, often show management believes the stock is undervalued.
  • Upbeat guidance can attract more investors and boost confidence.

Cons: Reasons for Caution

  • Disappointing sales or weak outlooks can hurt stock prices, even if profits look good today.
  • Stocks that have already soared, like Robinhood, may face profit-taking or skepticism about further growth.
  • After-hours moves can be exaggerated due to lower trading volume, making prices swing more than during the regular session.

Investor Takeaway

  • Stay calm after big after-hours moves—wait for the full market reaction before making changes.
  • Look for trends across sectors; tech, consumer, and energy stocks all reacted differently this time.
  • Use earnings season to spot strong management teams and companies with solid future guidance.
  • Remember that after-hours price swings can be temporary. Focus on long-term fundamentals, not just short-term noise.
  • Keep learning: Watch how after-hours trading affects your portfolio and use it as a lesson for future investing decisions.

For the full original report, see CNBC

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