The company made its public market debut at a time when technology stocks have slipped out of favor. Facebook Inc. shares have dropped about 12% this week as the company acknowledged its mishandling of user data, and less-than-stellar earnings have driven down other tech stocks. The Cboe Volatility Index has jumped since Wednesday as President Trump announced about $50 billion in tariffs against China over intellectual property violations.
Why Dropbox shares are soaring after it reported earnings
In fact, with shares of Tesla in afternoon trading soaring about 17% to around $298 per share, those who short the stock, or bet it will go down, were losing an estimated $1.4 billion, according to S3 Analytics estimates. Tesla closed Thursday at $299.68, up 17.67% for the session.
Ahead of Wednesday's Q3 earnings, Ark sold 150,000 Tesla shares. However, the investment group told CNBC that its "conviction in Tesla has not changed." Tesla is still the top holding in Ark's exchange-traded funds.
Dropbox reported results for the fourth quarter in February and posted sales and earnings that topped the market's expectations. The company grew sales 19% year over year in the period to reach $446 million, and adjusted earnings for the period came in at $0.16 per share. The average analyst targets, as polled by Refinitiv, had earnings of $0.14 per share on revenue of $443 million. The company's paying-user base of 14.3 million also topped the market's target for 14.2 million in the period.
At the top of the S&P 500, Deere soared nearly 9% after a strong fiscal first-quarter earnings beat, with revenue falling less than expected. Pinnacle West Capital (PNW) jumped 2.5% on earnings, moving higher in a buy range above a 99.91 buy point.
Coca-Cola (KO) traded effectively flat early Friday, after the company warned the impact of China's coronavirus slowdown would translate to a 2- to 3-point decline in unit case volume, a 1- to 2-point dent in organic revenue and a 1- to 2-penny decrease in earnings per share for its first quarter. The company held its full-yuear guidance steady. China's is Coke's third largest market globally.
Health insurance broker eHealth (EHTH) soared 6.2% higher after a strong fourth-quarter report and as Cantor Fitzgerald raised the stock's price target to 185, from 150. Database software innovator Dropbox (DBX) sailed up 19% on an earnings beat and a new, $600 million share repurchase program. Thinly traded Ducommum (DCO) vaulted 18% higher, jumping toward a buy point, as B. Riley upgraded the stock to buy following above-forecast fourth-quarter results late Thursday.
Colfax (CFX) muscled up 3.7% after reporting a better-than-expected 45% jump in earnings and a 55% revenue gain in its fourth-quarter report. The maker of welding supplies and medical devices has been testing support at its 10-week line, technically holding below a 36.73 buy point, after initially clearing that entry in December.
Texas Roadhouse (TXRH) roped an early 7% gain. The steak and barbecue restaurant chain received a handful of price target hikes after reporting late Thursday its earnings growth accelerated to a 45% gain in the fourth quarter, easily beating analyst targets. The company said it would open 30 new locations in 2020.
Other IPOs will have meteoric rises despite a lack of earnings. This is because investors are looking at other metrics to gauge growth. Shopify (SHOP) is a good example of this; shares of this stock appreciated over 500% before the company reported a positive quarter (see below). Investors instead paid attention to other metrics, such as revenues and gross profits. Exceedingly strong customer base growth was also viewed as a positive.
In yet other cases, new issues will skyrocket with no sign of earnings or sales, such as some of the winning Medical Products companies that came public this year. (Think SWAV or SOLY.) These companies are pouring capital into research and development and are oftentimes years away from producing a device. Investors are instead sold on the possibilities and excitedly buy up shares.
Recruiting seems easy. Most people think that a recruiter calls a candidate, shares a job description, and before long, the applicant is interviewing and on their way toward getting a job offer. The reality is far different. Search professionals spend an inordinate amount of time and effort chasing after potential candidates. A recruiter scours LinkedIn profiles, taps into their network for leads and initiates cold reach out to people who look like they may be a good fit for the job.
Apple stock rose 2.7% after the tech giant reported better-than-expected first-quarter results, with revenue hitting a record high following a surge in services and iPhones growth. Iphone sales generated a whopping $47.9 billion bringing total revenue to $89.58 billion versus $77.3 billion expected. 2ff7e9595c