Check out the companies making headlines in extended trading: Rivian — The electric vehicle manufacturer experienced a modest rise of nearly 2% in its stock value, despite falling short of expectations on both earnings and revenue for the third quarter. Rivian’s adjusted loss stood at 99 cents per share, with total revenue reaching $874 million. This performance disappointed analysts, who had forecasted a loss of 92 cents per share alongside revenue of $990 million, as noted by LSEG. Pinterest — Shares plummeted by 11% following the social media platform’s alarming guidance for fourth-quarter revenue. Pinterest projected revenues to decline between $1.125 million and $1.145 million, with the median estimate of $1.135 million falling below the $1.143 million anticipated by analysts, according to LSEG. Although Pinterest surpassed expectations for both earnings and revenue in the third quarter, the forward outlook dampened investor sentiment significantly. Block — Shares dipped by 2% after the fintech company announced a miss in its third-quarter revenue figures. Block’s reported sales totaled $5.98 billion, undercutting analysts’ predictions, which positioned revenue at approximately $6.24 billion. Conversely, Block’s adjusted earnings of 88 cents per share managed to beat estimates by a single cent, showcasing resilience amid broader challenges. Airbnb — Shares of the popular online homestay platform fell by nearly 3%. With third-quarter earnings of $2.13 per share, Airbnb fell just short of the consensus forecast by 1 cent, per LSEG. Meanwhile, quarterly revenue reached $3.73 billion, slightly exceeding analysts’ expectations of $3.72 billion, although investor concerns lingered. Akamai Technologies — Shares slid by 6% as the cloud computing giant revealed disappointing full-year guidance. Akamai announced its adjusted earnings expectations will range between $6.31 and $6.38 per share, with anticipated revenue between $3.966 billion and $3.991 billion. Analysts surveyed by FactSet had hoped for higher earnings of $6.43 per share alongside revenue of $3.99 billion. DraftKings — The sports betting firm’s stock tumbled by 4% following guidance that failed to meet expectations. DraftKings forecasted its fourth-quarter adjusted earnings before interest, taxes, depreciation, and amortization would fall within the range of $240 million to $280 million, missing the analysts’ forecast of $340 million to $420 million, as reported by LSEG. Sweetgreen — The salad chain suffered a staggering drop of more than 10% after not meeting expectations for both revenue and earnings in the third quarter. Sweetgreen reported losses of 18 cents per share, surpassing the analysts’ predictions of a narrower loss at 13 cents per share, according to LSEG. Additionally, their revenue of $173 million came in short of the anticipated $175 million. Toast — Shares of the restaurant management software firm surged by an impressive 19% after delivering strong guidance for the fourth quarter. Toast’s outlook projected adjusted EBITDA at between $90 million and $100 million, well above the $74.8 million estimated by analysts. The company also exceeded expectations in its third-quarter results for both revenue and earnings. Expedia Group — Shares of the travel services company climbed by 3%. Expedia’s adjusted earnings for the third quarter were reported at $6.13 per share, surpassing analysts’ expectations of $6.04 per share, as noted by LSEG. Although its revenue of $4.06 billion narrowly missed the analysts’ forecast of $4.11 billion, the announcement of Chief Financial Officer Julie Whalen stepping down from her position added uncertainty to the outlook. Arista Networks — The computer networking company saw its share value drop by 6% even as it reported third-quarter results that exceeded estimates. Arista Networks revealed adjusted earnings of $2.40 per share with revenue at $1.81 billion, surpassing analysts’ expectations of earnings at $2.08 per share and revenue at $1.74 billion. Furthermore, the company’s fourth-quarter revenue guidance was also stronger than anticipated. Lucid Group — Shares of the electric vehicle manufacturer increased by 6% after narrowly beating analysts’ projections in the third quarter. Lucid reported an adjusted loss of 28 cents per share, with revenue reaching $200 million during the period, which exceeded analysts’ expectations of a loss of 30 cents per share and revenue of $198 million. The company also reaffirmed its target to produce approximately 9,000 vehicles this year, indicating a 6.8% increase from 2023. Capri Holdings — The luxury brand owner, which includes Jimmy Choo, saw its stock decline by 7% following disappointing results from the fiscal second quarter. Capri reported adjusted earnings of 65 cents per share on revenue amounting to $1.08 billion, falling short of the Street’s expectations of 75 cents per share and $1.18 billion in revenue, according to LSEG. Revenue also lagged for its luxury brands Michael Kors and Versace. — CNBC’s Darla Mercado, Lisa Kailai Han and Alex Harring contributed reporting.
### Interview with Market Analyst Jane Doe on After-Hours Trading Trends
**Interviewer:** Welcome, Jane! It’s great to have you here to discuss the latest movements in after-hours trading. Let’s dive right in. Rivian made headlines with a modest rise despite missing earnings and revenue expectations. What do you think explains this paradox?
**Jane Doe:** Thank you for having me! Rivian’s slight increase in stock price, despite disappointing results, could reflect a few factors. Investors might be looking beyond the current quarter’s figures and focusing on the potential of the electric vehicle market as a whole. Additionally, sometimes stocks can react positively to news not directly related to earnings, like future partnerships or product developments.
**Interviewer:** Absolutely, that makes sense. Now, Pinterest experienced quite a drop of 11% following a bleak revenue forecast. How significant is forward guidance in influencing stock prices?
**Jane Doe:** Very significant! Forward guidance can often impact investor sentiment more than the actual quarterly results. In Pinterest’s case, even though they exceeded earnings expectations, the warning about declining future revenues suggests a downward trend that unnerves investors. It’s a classic example of how expectations can sometimes overshadow good short-term performance.
**Interviewer:** Speaking of disappointing forecasts, Block’s shares dipped after missing revenue expectations, though they beat earnings estimates slightly. What should investors take from that mixed bag?
**Jane Doe:** Block’s situation highlights the complexity of evaluating a company’s performance. While missing revenue targets is a concern, beating earnings can indicate cost management or operational efficiency. Investors should look for the reasons behind these discrepancies—are they isolated issues or part of a larger trend?
**Interviewer:** Airbnb’s shares fell even with strong revenue exceeding expectations, but only slightly missing the earnings consensus. What does this tell you about the current state of the hospitality market?
**Jane Doe:** It suggests that the market is jittery. Even a minor miss can trigger sell-offs, especially in markets where there are lingering pandemic effects. Investors are looking for strong signals of recovery and growth in travel, so just meeting expectations isn’t enough right now; they want to see clear, robust indicators of a rebound.
**Interviewer:** Let’s touch on the more positive side: Toast’s shares surged by 19%. What lessons can other companies learn from their success?
**Jane Doe:** Toast’s significant jump is really about executing well and guiding future performance higher than analysts’ expectations. It shows that investors reward companies that not only perform well but also provide a solid, reassuring outlook. Other companies should aim to maintain clear communication about their growth strategies and manage investor expectations effectively.
**Interviewer:** Lastly, do you see any overall trends in after-hours trading that investors should be aware of?
**Jane Doe:** Yes, definitely! A common trend is that the market becomes increasingly sensitive to guidance and future forecasts, especially in uncertain economic times. This could lead to heightened volatility, as investors react quickly to any news, whether good or bad. Long-term investors should keep an eye on these short-term fluctuations but also focus on the broader market context.
**Interviewer:** Thank you so much, Jane! Your insights are invaluable and help clarify the intricacies of after-hours trading.
**Jane Doe:** My pleasure! It’s always great to share insights on how markets are reacting to current events. Thank you for having me!
