Applied Materials, DraftKings, Airbnb, Twilio, Palo Alto Networks, Wynn Resorts, and Roku experienced significant stock market movements following the release of their latest financial results. Applied Materials witnessed a steep decline of nearly 7% after forecasting lower-than-expected revenue, while DraftKings' fourth-quarter performance fell short of analysts' projections. Conversely, Airbnb exceeded expectations, leading to a 14% rally in its stock.
Airbnb reported robust fourth-quarter results, earning 73 cents per share on revenue of $2.48 billion. This performance surpassed the expectations of analysts who had projected $1.27 per share and $1.77 billion in revenue, according to FactSet. The strong showing helped bolster investor confidence, driving Airbnb's stock up by 14% in trading.
In contrast, Twilio's shares dropped nearly 14% due to weak earnings guidance for the first quarter. The company expects earnings between 88 cents and 93 cents per share, falling short of the 99 cents per share anticipated by analysts surveyed by LSEG. This guidance has prompted a negative reaction in the market.
Palo Alto Networks also faced a decline, with its shares dropping 3% after reporting free cash flow of $509.4 million for its fiscal second quarter. This figure was below the $694.9 million forecasted by analysts polled by FactSet, resulting in a cautious response from investors.
Meanwhile, Wynn Resorts enjoyed a positive outcome as its fourth-quarter results exceeded estimates, causing its stock to surge by 10%. The company reported adjusted earnings of $2.42 per share on revenue of $1.84 billion, marking a strong performance that resonated well with investors.
Roku also experienced a significant boost, with its shares rising nearly 14% after announcing fourth-quarter results that surpassed analysts' expectations. Although Roku reported a loss of 24 cents per share, its revenue reached $1.2 billion, providing a positive outlook for the streaming company.