Pre-Bell|Nasdaq Futures Gained 25 Points; Sea Soared 10% and This Short-squeezed Stock Surged 600% in 2023

Tiger Newspress2023-03-07

U.S. stock futures traded marginally higher on Tuesday as traders await Federal Reserve Chair Jerome Powell’s latest comments on the state of the economy.

Market Snapshot

At 7:45 a.m. ET, Dow e-minis were up 4 points, or 0.01%, S&P 500 e-minis were up 4.25 points, or 0.10%, and Nasdaq 100 e-minis were up 24.25 points, or 0.20%.

Pre-Market Movers

Meta Platforms, Inc.​ -- Stocks rose nearly 1.5% in premarket trading. It plans to cut thousands of employees as soon as this week in a new round of layoffs, Bloomberg reported. The parent company of Facebook and Instagram cut more than 11,000 employees, or 13% of its workforce in November, saying at the time it wanted to ensure it was operating efficiently.

Rivian Automotive, Inc.​ -- Stocks crashed over 7% in premarket trading. It plans to sell green bonds worth $1.3 billion as weakening demand and lofty costs tighten a cash crunch around electrical vehicle makers.

Troika Media Group Inc.​ -- Stocks surged over 18% in premarket trading and gained over 600% this year. As of Feb. 15, there were a total of 12.89 million shares of TRKA sold short with a total value of $3.08 million. That’s equivalent to a short interest as a percentage of float of 36.3%, which rose by 87.4% compared to the reading on Jan. 31.

Sea Ltd​ -- Stocks soared over 10% in premarket trading. Its Q4 total GAAP revenue was US$3.5 billion, up 7.1% year-on-year; total gross profit was US$1.7 billion, up 29.5% year-on-year, total net income turned positive to US$422.8 million, as compared to US$(616.3) million for the fourth quarter of 2021.

Nutanix Inc.​ -- Stocks fell over 5% in premarket trading after issuing preliminary fiscal second-quarter revenue and billings that topped analysts' expectations but also saying that it doesn't expect to be able to file its 10-Q on time because of a matter with "certain evaluation software from one of its third-party providers."

Atlassian Corporation PLC​ -- Stocks rose over 2% in premarket trading. The company would be laying off 500 workers, or about 5% of its workforce.

GRINDR INC -- Stocks crashed nearly 15% in premarket trading. It said fourth-quarter revenue rose to $54.5 million from $45 million a year earlier but profit in the period dropped to $5.2 million from $6.5 million. It expects revenue to increase 25% in fiscal 2023 from about $195 million in 2022.

Weight Watchers International Inc -- Stocks jumped over 14% in premarket trading. It reached a deal to acquire digital health company Sequence for $106 million in cash and stock. Sequence members pay $99 a month for services that include telehealth appointments with doctors, who can prescribe Ozempic, Wegovy, Mounjaro and other weight-loss medications. WW also issued a fiscal first-quarter sales forecast that was below estimates.

Market News

  • Alphabet is reportedly telling its workers that it will further respond to a growth slowdown by trimming the number of senior promotions is gives out this year.
  • Meta Platforms, Inc. is planning a fresh round of layoffs and will cut thousands of employees as soon as this week, according to people familiar with the matter. Itslashed 11,000 workers in what was its first-ever major layoff.

    Coinbase Global, Inc. says it’s not responsible for losses stemming from a security breach, according to an account holder who sued in an attempt to recover $96,000 that he says was stolen from him.

    Pinduoduo Inc. subsidiary Temu, the Boston-based budget shopping app operator, will start operations in Australia and New Zealand next Monday, weeks after it achieved record-high sales in the United States.

    Grab Holdings on Monday said it prepaid $600 million in debt ahead of a 2026 maturity, taking advantage of excess cash on its balance sheet. It completed the transaction last week, bringing its debt under an outstanding term loan to $517 million, down from the previous balance of $1.117 billion. Grab also has about $200 million in other bank debt.

    Sea Ltd's net income was $426.8 million in the fourth quarter, analysts expected a loss of $434 million on average. Revenue growth slowed dramatically but sales still exceeded estimates, rising 7.1% to $3.5 billion.

    Rivian Automotive, Inc. plans to sell green bonds worth $1.3 billion, it said on Monday, as weakening demand and lofty costs tighten a cash crunch around electrical vehicle makers.

    The Justice Department and Department of Transportation are expected to take action as soon as Tuesday to block JetBlue Airways’s $3.8 billion takeover of Spirit Airlines Inc., according to people familiar with the case.

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