My top 10 things to watch Friday, Feb. 10
1. The hangover from market gains earlier this year and a realization that travel and leisure are the last remaining strengths of this economy are hitting stocks. Bond yields are up early Friday, so the Dow Jones Industrial Average, the S&P 500 and the Nasdaq are set to open lower. The Dow is on track for back-to-back weekly losses. The S&P 500 and Nasdaq are pacing to break multiweek winning streaks.
2. Expedia (EXPE): Weak quarter. Travel or weather, which one is the blame? Management says the latter hurt fourth-quarter results. The company says 2023 began with record app usage.
3. Lyft (LYFT) shares are losing a third of their value early Friday after the ride company’s weak forward guidance. Updated non-GAAP results calculation required by the SEC shows a Q4 adjusted EBITDA loss of $248.3 million versus a $47.6 million loss in the year-ago quarter.
4. PayPal (PYPL) delivers a mixed fourth quarter and says CEO Dan Schulman will retire. A search for his successor is underway. PayPal announced job cuts last week. Piper Sandler likes the margin improvement at PayPal but shows no real enthusiasm. JPMorgan raises price target to $103 per share from $95.
5. Cloudflare (NET) beats with quarterly results. Some analyst price-target increases but not enough since they’re all around where the cloud stock is already trading. Shares had a brutal 2022, and they’ve bounced nearly 30% so far this year.
6. Deutsche Bank (DB) lowered to underperform from neutral (sell from hold) at Bank of America. Wow, between Credit Suisse (CS) and DB there has to be something good for JPMorgan (JPM).
7. Morgan Stanley downgrades Affirm (AFRM) to equal weight from overweight (hold from buy); cuts price target to $15 per share from $46 in a catch-up call on the decimated buy now, pay later company. Pricing missteps and consumer behavior changes weighed on quarterly results and guidance.
8. Stifel upgrades VF Corp (VFC) to buy from hold. Is the stock’s six-session losing streak as of Thursday’s close buyable? I say WHY? Better-than-expected quarter earlier this week. But big dividend cut. Guidance range narrowed by the company behind Vans, The North Face and Timberland brands.
9. RL (RL) gets price target increase at $135 per share from $115 at Credit Suisse. This, I like. Amazing quarter this week at the company formerly named Ralph Lauren.
10. Bank of America lowers price target on Mattel (MAT) to $21 per share from $26. Worried about toy weakness. Mattel’s stock, while little changed early Friday, sank more than 10% Thursday after a rough quarter.
(See here for a full list of the stocks in Jim Cramer’s Charitable Trust.)
As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade.
THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH OUR DISCLAIMER. NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
