| | | | A discount retailer is climbing nearly 6% on strong sales growth, a quantum computing firm is gaining ground as revenue and bookings top forecasts, and a smart fitness equipment maker is soaring on a fresh $3.6M investment. Read on to know more. | |
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| | | | | What to Watch | Earnings: | DocuSign, Inc. (DOCU): Aftermarket Ulta Beauty, Inc. (ULTA): Aftermarket Rubrik, Inc. (RBRK): Aftermarket ServiceTitan, Inc. (TTAN): Aftermarket Semtech Corporation (SMTC): Aftermarket Mach Natural Resources LP (MNR): Aftermarket EverCommerce Inc. (EVCM): Aftermarket | Economic Reports: | Initial jobless claims [March 8]: 8:30 a.m. Producer price index [Feb]: 8:30 a.m. Core PPI [Feb]: 8:30 a.m. |
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| | Discount Retail | Dollar General Shares Edge Up On Strong Sales Despite Weak Q4 Earnings | | Dollar General (NYSE: DG) reported a sharp decline in fourth-quarter earnings, missing analyst expectations, but its revenue has increased year-over-year. | The company’s stock is up 5.5% in premarket trading. | For the quarter ending January 31, Dollar General posted earnings per share of $0.87, significantly lower than the $1.83 reported a year earlier. | The result also fell short of the analyst consensus of $1.51, according to FactSet. | Net sales for the quarter are $10.30 billion, up from $9.86 billion a year ago, and slightly exceeding analyst expectations of $10.26 billion. | Comparable-store sales are up 1.2%, also exceeding expectations of a 0.9% increase. | Looking ahead to fiscal 2025, Dollar General forecasts earnings per share between $5.10 and $5.80, which is also below analysts' projected $5.90. | The company expects net sales to increase by approximately 3.4% to 4.4% over the year. | Same-store sales growth is projected between 1.2% and 2.2%, closely aligning with analyst estimates of 1.8%. | The discount retailer continues to navigate a challenging retail environment, balancing rising costs and shifts in consumer spending. |
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| | Financial Services | Moomoo Parent Futu Holdings Reports Strong Q4 Growth | | Futu Holdings Limited (NASDAQ: FUTU) reported a 113% year-over-year surge in fourth-quarter net income, driven by record trading volumes fueled by heightened investor interest in artificial intelligence and cryptocurrency stocks. | Shares of the financial services firm are up 4.0% in early trade. | For the quarter ending December 31, Futu is posting a net income of HK$1.87 billion (US$240.7 million), significantly higher than HK$877 million a year earlier. | Revenue is also up 86.8%, reaching HK$4.43 billion (US$570.6 million), as all business segments experienced robust growth. | Trading activity on Futu’s platform reached an all-time high during the quarter, with total trading volume hitting HK$2.89 trillion in Q4—more than triple the previous year’s level and up 51.5% from Q3. | U.S. stock trading volume climbed 36.1% sequentially to HK$2.08 trillion, while Hong Kong stock trading volume more than doubled quarter-over-quarter to HK$754.5 billion. | CEO Leaf Hua Li highlighted how AI stocks previously unknown to users became some of the most-traded names on the platform due to their strong performance and increasing public confidence in AI’s long-term impact. | Futu’s wealth management division also expanded, with total client assets growing 92.6% year-over-year to HK$110.9 billion. The company ended 2024 with 2.4 million paying clients, a 41% increase from the previous year, and expects to add 800,000 more in 2025. | For the full year, Futu reported a 27% rise in net income to HK$5.43 billion (US$699.4 million) on revenue of HK$13.59 billion (US$1.75 billion), up 35.8% from 2023. |
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| | | | Quantum Computing | D-Wave Shares Jump Despite Larger Q4 Loss as Revenue Tops Forecasts | | D-Wave Quantum (NYSE: QBTS) reported a wider-than-expected loss for the fourth quarter, but its stock is up 4.3% in premarket trading because its revenue and bookings are both up. | For the quarter ending December 31, the quantum-computing firm posted a loss of $0.08 per share, missing analysts' expectations of a $0.06 loss. | However, revenue reached $2.3 million, slightly surpassing the Wall Street estimate of $2.2 million, according to FactSet. | Full-year revenue is flat at $8.8 million, in line with projections. | Bookings, however, saw a notable jump to $23.9 million, marking an increase of $13.4 million compared to 2023. | The company added five major clients, including four government and research institutions and one Forbes Global 2000 company. | Looking ahead, D-Wave expects its first-quarter revenue to exceed $10 million, driven largely by the sale of a D-Wave Advantage quantum computer. | CEO Alan Baratz emphasized the company’s mission to bring quantum computing solutions to organizations today, highlighting record bookings and a strong cash position. |
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| | Social Media | Weibo Beats Revenue Estimates, Stock Edges Higher | | Weibo Corporation (NASDAQ: WB) reported fourth-quarter 2024 revenue slightly above analyst expectations, with the company’s stock rising 3.5% in premarket trading. | For the quarter ending December 31, Weibo posted revenue of $456.8 million, surpassing the consensus forecast of $453.11 million. | Adjusted earnings per share are $0.40, aligning with market expectations. | Advertising and marketing revenue is down 4% year-over-year to $385.9 million, largely due to weakness in the online gaming sector. | However, value-added services jumped 18% to $71.0 million, fueled by increased demand for membership services and gaming-related offerings. | CEO Gaofei Wang highlighted the company's solid overall performance, noting steady advertising results and strong momentum in value-added services throughout the year. | User engagement remained strong, with monthly active users reaching 590 million in December 2024, while daily active users climbed to 260 million. | Additionally, Weibo’s board has approved an annual dividend policy, with a $200 million payout planned for fiscal 2024. | The move signals confidence in the company’s financial position as it looks to maintain growth in a shifting digital landscape. |
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| | Movers and Shakers | | Interactive Strength Inc. [TRNR] - Last Close: $1.42 | Interactive Strength Inc. is a fitness technology company specializing in smart fitness equipment and digital training solutions under its CLMBR and FORME brands. | Its shares are up 9% in premarket after Interactive Strength secured a $3.6 million investment through convertible notes from an institutional investor, further supporting its M&A strategy, including the pending Sportstech acquisition. | My Take: TRNR is down 50% YTD and hasn’t made profits since its inception. It might be best to adopt a wait and watch approach here. |
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| Aveanna Healthcare Holdings Inc. [AVAH] - Last Close: $3.74 | Aveanna Healthcare Holdings Inc. is a home healthcare services provider specializing in pediatric and adult care. | Its shares are rising 9% in early trading after Aveanna reported a dramatic turnaround in Q4 2024, swinging from a $25.7 million loss to a $29.2 million net profit. | Revenue increased 8.6% year-over-year to $519.9 million, while adjusted EBITDA surged 42.8% to $55.2 million. | My Take: The company also provided an optimistic 2025 outlook, projecting further revenue and profit growth. However, it’s struggled in the past with profitability so it might be best to keep a close watch on this stock for now. |
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| Freightcar America, Inc. [RAIL] - Last Close: $6.23 | FreightCar America, Inc., is a manufacturer of railcars for the freight transportation industry. | Its shares are rising 13% in premarket after posting a strong Q4, swinging to an adjusted profit of $0.21 per share from a $0.16 loss a year earlier. | Revenue increased to $137.7 million, and the company provided a positive 2025 outlook, expecting revenue between $530 million and $595 million. | My Take: FreightCar America has made a solid turnaround after a disastrous Q3, but it remains to be seen if it can sustain the momentum. Keep this stock on your radar. |
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| | | | That’s all for today. Thank you for reading. If you have any feedback, please reply to this email. | Best Regards, | — Adam Garcia Elite Trade Club |
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