Major U.S. indexes opened lower on Wednesday as another busy day of earnings kicked off.
First-quarter earnings season is nearing an end but there were still plenty of twists and turns for investors.
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It was a case of two roads diverging for car-hailing companies Uber and Lyft. Uber shares tanked early Wednesday, dropping more than five percent after the company surprised investors with a quarterly loss, despite an increase in revenue, and a weak forecast for the next quarter.
Rival Lyft on the other hand, which reported strong earnings late Tuesday, saw shares jump more than eight percent Wednesday morning.
"We've had a solid start to the year and we're on track to deliver on our full-year financial goals with an improved outlook for our full-year free cash flow," said CFO Erin Brewer in a statement alongside the earnings report.
Also seeing a share-price surge in early trading was Reddit. The social-news website, famed for its many forums, went public in March and published its first earnings report on Tuesday after-hours, showing a revenue increase of 48 percent and an increaser in users. The stock was up more than 15 percent at one point pre-market Wednesday.
"It was a strong start to the year and a milestone quarter for Reddit and our communities as we debuted as a public company," said Steve Huffman, Reddit's co-founder and CEO.
Shares in Anheuser-Busch InBev, the brewer behind Bud Light, were up significantly (5 percent) after the company announced a 2.6 percent revenue increase, which it said was driven by a boost in Corona sales. The drinks giant reported a $200 million increase in profit.
The firm's overall growth came despite a 9.1 percent decline in revenue in the U.S., as boycotts of the light beer hampered sales.
In a statement accompanying the earnings report, CEO Michel Doukeris said: "The strength of the beer category, our diversified global footprint and the continued momentum of our megabrands delivered another quarter of broad-based top- and bottom-line growth."
Toyota shares closed down on Tuesday but opened marginally higher Wednesday as the carmaker, whose models include the hybrid Prius and Tacoma pickup truck, reported an almost 8 million Yen increase in sales revenues.
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"I would like to express our company's sincere gratitude to its Toyota, Lexus, and GR customers, as well as to all other stakeholders for their support. In the previous fiscal year, our diverse product lineup enabled us to provide our customers with many cars. We believe that this achievement is the result of years of determined product-centered management and the building up of our business foundation," remarked Toyota president Koji Sato.
Multinational e-commerce company Shopify announced a 23 percent increase in revenue but a $273 million net loss for the first quarter in an earnings report before the bell. Shares in the online-merchant platform dropped more than 19 percent once markets opened.
Homestay company Airbnb is set to release its earnings results after the bell on Wednesday.
Earnings Highlights To Watch This Week
- Thursday: Honda, ING, Warner Bros. Discovery, Warner Music Group
- Friday: Canadian energy multinational Enbridge, Soho House
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Joe Edwards is a Live News Reporter in Newsweek's London bureau.
