News of the day for August 9, 2023.
Shares of Penn Entertainment surged after it struck a branding deal with ESPN and shares of online loan provider Upstart dove after its lower-than-expected quarterly revenue forecast. Here’s what investors need to know today.
1. Penn Entertainment Strikes Deal with ESPN on Sportsbook App Branding
Shares of Penn Entertainment (PENN) surged more than 13% after striking a deal with ESPN to brand its sportsbook as ESPN Bet. The move comes as ESPN parent Disney (DIS) has been trying to find strategic investors for the sports-media company. Disney shares traded 0.9% higher in pre-market trading ahead of releasing its earnings report after markets close today.1
2. Upstart Shares Dive After Lower-than-Expected Earnings, Revenue Forecasts
Burdened by a tougher lending environment, shares of fintech company Upstart Holdings (UPST) plunged 19% in pre-market trading after it delivered a lower-than-expected forecast for its current quarter. Upstart projected $140 million in third-quarter revenue, lower than the $155 million analysts were anticipating, while its $5 million in projected adjusted earnings also fell short of the $9.6 million analysts expectated.2
3. Sony Raises Sales Guidance on Strong PlayStation, Entertainment Sales
Sony Group Corp. (SONY) raised its full-year guidance for sales by 6% and net income by 2% after it reported strong sales for its PlayStation 5 gaming system and its entertainment operations. The Japan-based conglomerate cut its guidance for its image sensors used in smartphones, citing a slower-than-expected recovery in China’s market for the devices. Sony shares traded 0.2% higher in the pre-market.3
4. Lyft Shares Fall After Continued Losses, Slow Revenue Growth
Shares of ride-sharing service Lyft (LYFT) fell more than 7% in pre-market trading after it reported second-quarter earnings that narrowed its losses to $114.3 million from $377.2 million a year ago. The company also reported growing its year-over-year quarterly revenue 3% to $1.02 billion, which was lower than 14% quarterly revenue growth recently reported by its competitor Uber.4
5. Rivian Shares Move Up on Narrowed Losses, Higher Production Forecasts
Electric vehicle maker Rivian Automotive (RIVN) beat analyst forecasts for earnings while raising its full-year production outlook to 52,000 for the year, better than the 50,000 it had previously reported. Rivian reported a loss of $1.08 per share from revenue of $1.1 billion, while analysts were looking to see a per-share loss of $1.43 on revenue of $1.1 billion. Shares of Rivian traded 1.2% higher in the pre-market.5
Article Source
- Wall Street Journal. “ESPN Strikes $2 Billion Sports-Betting Deal With Penn Entertainment.”
- MarketWatch. “Upstart stock sinks as tough lending landscape drives downbeat earnings outlook.”
- Bloomberg. “Sony Hikes Outlook as Games Help Offset Smartphone Weakness.”
- Barron’s. “Lyft Stock Drops. New CEO’s Reset Plan Doesn’t Look Like a Threat to Uber Yet..”
- Barron’s. “Rivian Raises Production Forecast as Results Surprise Wall Street.”
- https://www.investopedia.com/5-things-to-know-before-markets-open-august-9-2023-7574400
