Stock market today: Stocks fall as investors rotate out of tech into Jackson Hole
On Thursday, Uber Technologies Inc . (NYSE:UBER) experienced a decline in its stock value despite reporting a notable 24% year-over-year growth in Fixed-Price Mobility Gross Bookings for the fourth quarter of 2024. Management’s commitment to maintaining over 20% growth in the first half of 2025 was overshadowed by the company’s first EBITDA within guidance range since the fourth quarter of 2021, rather than above it, which has been the trend in previous quarters. This outcome, along with increased sales and marketing expenses, contributed to the initial negative response from investors. However, Uber’s Delivery segment continued to perform well, with EBITDA surpassing expectations once again in Q4.
DoorDash Inc. (NYSE:NASDAQ:DASH) maintained robust Gross Order Volume (GOV), demonstrating impressive revenue growth of 24.17% over the last twelve months. The company’s strong financial position is evident with an overall health score of "GOOD" according to InvestingPro analysis. The Q1 EBITDA guidance, while not as high as some had hoped, did not detract from the control DoorDash appears to have over its earnings, with the potential for investments across various markets and categories to yield returns over time. The company’s stock has shown remarkable momentum, gaining nearly 58% over the past six months, though current valuations suggest it may be slightly overvalued. Post-earnings, analysts have slightly adjusted their 2025 EBITDA expectations from the $2.8-3.0 billion range to $2.7 billion but remain confident in the company’s long-term strategy. With 13 additional ProTips and comprehensive analysis available on InvestingPro, investors can access deeper insights into DoorDash’s financial health and growth prospects.
Lyft Inc. (NASDAQ:LYFT) has seen a continued acceleration in Sales and Marketing growth, driven by consumer incentives, while driver incentives have moderated. This strategy has helped mitigate the impact of expense growth on the profit and loss statement. However, Lyft’s Q1 guidance for Gross Bookings growth, assuming a low single-digit plus pricing headwind, raises questions about potential unit economic challenges due to pricing pressures, especially if supply-side efficiencies become harder to achieve.
Analysts have a more positive outlook on Instacart (NASDAQ:CART)’s parent company, CART, despite a post-earnings sell-off triggered by a Q1 miss on incremental margins. The company’s smaller grocery and restaurant order margins were dilutive, prompting questions about the defensiveness of CART’s strategy amidst competitive dynamics. Nevertheless, the core weekly shop growth remains stable, and the stock is believed to be undervalued.
eBay Inc. (NASDAQ:EBAY) has been at the center of discussions regarding the sustainability of its UK C2C take rate cut and its impact on margins. While Q1 Gross Merchandise Volume (GMV) guidance did not meet expectations, management’s reassurance of a stable year-over-year margin outlook provided some relief. However, investors are still weighing the balance between growth and profitability as eBay continues to invest in improving the shopping experience and focusing on key categories and R&D.
Etsy Inc . (NASDAQ:ETSY) reported weaker core Gross Merchandise Sales (GMS) year-over-year in Q4, attributed to declining traffic and conversion rates. The company’s marketing spend has increased without significantly improving the GMS trajectory, indicating a need for product development to boost long-term frequency gains. Etsy has not set a margin floor for 2025, suggesting an expectation of margin compression as investments in product initiatives continue.
Wayfair Inc . (NYSE:W) saw better-than-expected growth in the U.S. during Q4, but also faced rising customer acquisition costs. The company asserts that the increase in advertising expenses, which accounted for 13.7% of revenue, is temporary and will yield returns in future quarters. Nonetheless, the pressure on unit economics in 2025 may intensify, despite a positive outlook for Q1 gross margins and EBITDA growth supported by fixed cost leverage.
Zillow Group Inc . (NASDAQ:ZG) remains focused on the pace of existing home sales and the company’s ability to surpass industry growth. While Zillow’s margins have been less influential on its stock performance, the company is recognized for its operating leverage in 2025. However, the potential for margin growth may be challenged by the incremental revenue coming from the Mortgage segment, which is currently likely incurring losses. Zillow aims to achieve positive GAAP Net Income in 2025 and has provided guidance on stock-based compensation leverage. For a comprehensive analysis of all companies mentioned in this article, including detailed financial metrics, Fair Value calculations, and expert insights, consider exploring InvestingPro’s extensive research reports, covering over 1,400 US stocks with actionable intelligence for smarter investing decisions.
In other recent news, Domino’s Pizza (NYSE:DPZ) reported mixed fourth-quarter 2024 results, with slower-than-expected growth in U.S. comparable sales but stronger international sales. Barclays (LON:BARC) analyst Jeffrey Bernstein raised Domino’s price target to $420, though he maintained an Underweight rating due to valuation concerns and tempered growth projections. Domino’s anticipates a pickup in U.S. sales growth for 2025, driven by new product launches and expanded third-party partnerships. Meanwhile, DoorDash agreed to a $16.75 million settlement with the New York Attorney General over deceptive pay practices affecting delivery workers. The settlement requires DoorDash to revise its payment practices and ensure transparency in tip distribution.
Additionally, Truist Securities reiterated a Buy rating on DoorDash, with a $235 price target, citing strong marketplace performance and potential profitability improvements. Loop Capital also raised its DoorDash price target to $235, highlighting the company’s growth momentum and strategic market positioning. RBC Capital increased its price target for DoorDash to $230, praising the company’s robust fourth-quarter performance and expansion efforts. These developments reflect the ongoing dynamics and strategic adjustments within the food delivery and restaurant sectors.
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