Brian Chesky, co-founder and CEO of Airbnb Inc., at the Hope Global Forums annual meeting in Atlanta on Dec. 12, 2023.

Dustin Chambers | Bloomberg | Getty Images

My top 10 things to watch Thursday, May 9

1. Airbnb throws cold water on this quarter even as it raves about the next one. The vacation rental company reported first-quarter beats on the top and bottom lines on Wednesday but said sales for the second quarter will come in between $2.68 billion and $2.74 billion. Analysts expected $2.74 billion. Shares dropped 6% in extended trading.

2. Arm also left investors disappointed with its forward guidance, sending shares of the British chip designer down 8%. For the 2025 fiscal year, management said it expects revenue between $3.8 billion and $4.1 billion. Analysts were expecting revenue of $3.99 billion for the full year, according to LSEG data. But the company said it still expects to post revenue growth of at least 20%.

3. Brokerage firm Robinhood reported good quarterly numbers: Revenue was $618 million vs. consensus $548.6 million. Transaction-based sales rose 59% year over year to $329 million, driven by crypto revenue of $126 million (up 232%). Q2 is off to a strong start, with April the highest month of the year for net deposits and gold subscribers, the company said. EPS was 18 cents vs. consensus 5 cents. Multiple price target raises. Everyone else is losing? Schwab?

4. Tesla’s head of product launches Rich Otto quit on Wednesday, citing the recent layoffs that are “rocking the company and its morale,” according to his post on LinkedIn. His resignation comes as CEO Elon Musk said he expects to reveal Tesla’s robotaxi design on Aug. 8. Musk has promised a self-driving taxi for years but has yet to deliver it. Now we are hearing about his AI plans. What is going on?

5. Baird lowered its price target for Azek by a couple of bucks to $58 but kept its buy rating. There are lots of these kinds of calls — take PT down but reiterate buy because of rate cuts coming.

6. Wynn Resorts’ price target was raised to $128 from $124 at Barclays. Wynn reported a great quarter on Tuesday and went down anyway. It shouldn’t have and analysts who raised their price targets will ultimately be right. We reiterated our 1 rating and $125 price target.

7. Instacart is an unlikely success: The company posted first-quarter revenue of $820 million (vs. $794.5 million expected). Multiple price target boosts.

8. Trade Desk is much better, reported Q1 revenue of $491 million vs. consensus $480 million, EPS of 26 cents vs. consensus 21 cents. Citi raised its price target on shares to $112 from $110. Connected TV ads have reached an inflection point, strong guidance, and connected TV performance is very strong.

9. Affirm upgraded to buy from hold at JPMorgan. The stock is down too much, a baffling decline as the gross merchandise volume outlook was better than feared and it posted an operating margin beat.

10. Duolingo disappointment. The language-learning app showed user growth slowed most since 2022. Guidance was softer than expected. Shares dropped 14% in the aftermarket. Still, 54% year-over-year growth of daily active users is not too shabby.

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