DKNG - Hot Stocks: CVNA DKNG surge on earnings news; LYFT TRUP drop

2023-05-05 17:54:36 ET

Bouncing back after losses posted earlier in the week, U.S. stocks soared on Friday, helped by Apple earnings and a strong jobs report. The Nasdaq led the advance, climbing by 2.3%.

Earnings news continued to provide a critical catalyst for individual stocks. Carvana ( CVNA ) and DraftKings ( DKNG ) both posted double-digit percentage gains following the release of their quarterly results.

On the other side of the spectrum, the release of quarterly updates sparked selling in Lyft ( NASDAQ: LYFT ) and Trupanion ( TRUP ).

Standout Gainer

Carvana ( CVNA ) received a boost from its latest earnings report , surging 24% after the online care dealer managed to beat expectations with its Q1 sales figure, despite a sharp drop from last year. The company also gave an upbeat forecast for the current fiscal period.

The company reported Q1 revenue that dropped 25%. However, the top-line total of $2.6B still narrowly topped analysts' projections. Meanwhile, CVNA predicted that it would achieve positive adjusted EBITDA in Q2.

Shares climbed $1.76 on the earnings news, closing the session at $8.96. Despite the sharp advance, the stock only returned to levels last seen in mid-April. With gains posted earlier in the year, CVNA is 94% higher for 2023.

Standout Decliner

The release of quarterly results sent Lyft ( LYFT ) spiraling, as investors worried about the firm's active rider statistics . Shares of the ride-hailing service dropped 19%.

The company reported Q1 headline numbers that came in better than expected, including revenue that rose 14% from last year to reach $1B. The company's loss came in narrower than analysts had feared.

However, LYFT reported 19.6M active riders in the quarter. This was below the 19.8M that experts had predicted.

Based on the results, LYFT dropped $2.06 to reach $8.63. The slide took the stock back towards a 2023 low reached in March, when shares recorded a close of $8.46. Over the past 12 months, LYFT has fallen about 58%.

Notable New High

Bolstered by better-than-expected quarterly results , DraftKings ( DKNG ) surged 15%, taking shares of the online betting platform to a fresh 52-week high.

The company beat expectations with its Q1 results, with revenue that surged 85% from last year. DKNG also projected that it would be roughly breakeven on adjusted EBITDA in Q2.

Investors cheered the financial figures, sending the stock to a new intraday 52-week high of $25.34. Shares moderated a bit before the end of trading, with the stock finishing at $24.58. This represented an advance of $3.27 compared to the previous day's close.

Looking longer-term, DKNG has climbed about 35% over the past month. Shares have surged more than 120% so far in 2023.

Notable New Low

Trupanion ( TRUP ) plummeted to a new 52-week low, dragged down by a wider-than-projected quarterly loss . Shares slumped almost 20% during the session.

Even with revenve that climbed a better-than-projected 24% from last year, the pet insurance firm failed to meet expectations with its Q1 loss. The firm reported an adjusted EBITDA loss of $4.9M compared to an adjusted EBITDA profit of $1.2M in the same period last year.

TRUP dropped $7.07 on the day to close at $28.88. Shares also touched an intraday 52-week low of $23.35. On a longer timeline, the stock has fallen 37% in 2023 and 55% over the past 12 months.

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