Palantir Technologies experienced a 3.8% drop in Thursday's premarket trading, continuing a downward trend following a significant 10% decline in the previous session. This movement comes amid broader market volatility, influenced by recent reports that Defense Secretary Pete Hegseth has advised Pentagon officials to prepare for an 8% annual reduction in the U.S. defense budget over the next five years. Such cuts could potentially impact defense contractors, including companies like Palantir that provide data analysis services to government agencies.
In contrast, Shake Shack shares surged 10.8% in premarket trading after the company reported stronger-than-expected quarterly earnings. The company's revenue reached $3.12 billion, surpassing FactSet's estimate of $3.07 billion, boosting investor confidence and increasing market interest in the fast-casual restaurant chain.
Cheesecake Factory also reported impressive financial results, with earnings of $1.04 per share, excluding items, and a revenue of $921 million. Both figures exceeded forecasts of 92 cents per share and $913 million in revenue, respectively. The positive earnings report reflects the company's ability to outperform market expectations despite challenging economic conditions.
Meanwhile, Builders FirstSource saw its shares pull back by 4.5% after announcing fourth-quarter revenue of $3.82 billion, which fell short of the consensus forecast of $3.89 billion from analysts polled by FactSet. The miss in revenue expectations contributed to the stock's decline as investors reassessed their positions.
Hasbro recorded earnings of 46 cents per share, excluding items, and generated $1.1 billion in revenue. These results outstripped the anticipated figures of 34 cents per share and $1.03 billion in revenue predicted by analysts, according to FactSet. The better-than-expected performance helped stabilize Hasbro's market position amidst fluctuating investor sentiment.
In other developments, Klaviyo's shares dropped 6.8% after issuing weak guidance for current-quarter operating income, projecting between $25.5 million and $28.5 million, which failed to meet the consensus forecast of $32 million from analysts polled by FactSet. This disappointing outlook weighed heavily on investor confidence.
Clearwater Analytics reported strong earnings for the fourth quarter, with 13 cents per share, excluding items, and $126.5 million in revenue, leading to an impressive 18% surge in the company's stock. This robust performance reassured investors and highlighted Clearwater's potential for continued growth.
Carvana faced an approximate 8% tumble following mixed fourth-quarter results, which sparked concerns about the company's future prospects. Similarly, Walmart experienced an 8% decline after issuing weaker-than-expected guidance, reflecting potential challenges ahead for the retail giant.
Wayfair and Alibaba provided some positive news for investors. Wayfair's fourth-quarter revenue exceeded analyst expectations, resulting in a 4% increase in the company's stock. Alibaba witnessed a more dramatic rise with shares trading over 11% higher after the Chinese e-commerce giant reported quarterly results that surpassed analyst predictions.
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