Robinhood shares fell as its first-time profit was overshadowed by a drop in users and Anheuser-Busch InBev shares rose after it beat estimates on earnings despite a boycott. Here’s what investors need to know today.
1. Robinhood Posts Profit But Shares Fall After Drop in Users
Robinhood Markets (HOOD) posted a profitable quarter for the first time in the company’s history, despite a fall in trading activity with 10.8 million monthly active users, down by 1 million from the prior quarter. Its earnings came in at 3 cents per share on a revenue of $486 million, where analysts were looking for a loss of 1 cent per share, on revenue of $473 million. Shares of Robinhood fell more than 6% in pre-market trading.
2. AB InBev Defies Boycott to Beat Earnings Expectations, Maintain Outlook
Anheuser-Busch InBev SA (BUD) blew by quarterly profit expectations, reporting earnings of 5% compared with the 0.4% that analysts had expected, despite a boycott of Bud Light, and raised revenues 7.2% globally, with price hikes offsetting a 1.4% fall in volumes. The world’s largest brewer also reiterated its full-year and medium-term profit outlook, helping send shares of AB InBev higher by nearly 3% in pre-market trading.
3. PayPal Shares Drop as Operating Margins Miss Projections
Paypal Holdings (PYPL) shares dropped more than 7% in pre-market trading after the payment-technology company reported a second quarter operating margin of 21.4%, lower than the 22% outlook the company had offered previously. The company blamed the shortfall on its credit portfolio, where it generated less revenue than anticipated.
4. Qualcomm Shares Plunge After Fourth Quarter Outlook Falls Short
Shares of Qualcomm (QCOM) plummeted more than 8% in pre-market trading after it reported third-quarter earnings that beat analyst forecasts, but its fourth-quarter guidance failed to meet expectations. The smartphone chipmaker said it expected earnings of between $1.80 and $2 a share on revenue between $8.1 billion and $8.9 billion, short of analysts projections of $1.91 a share in earnings on $8.7 billion in revenue.
5. Initial Jobless Claims, Factory Orders Projected to Rise
Initial jobless claims for the week ending July 29 are expected to tick up slightly to 227,000 from 221,000 the week prior when that data is released at 8:30 a.m. ET. At 9:45 a.m. ET, the final July S&P services Purchasing Managers Index (PMI) is forecast to hold at 52.4, the same as the preliminary figure, while factory orders are projected to jump to 2.2% in June from 0.3% the month prior when it is released at 10 a.m. ET.