Hot Stocks: Online Gaming Stocks Fall; ROKU, RDFN Plunge on Earnings; APPN increases


Stocks suffered another day of losses on Friday, adding a modest pullback to the substantial drop from the previous day. Geopolitical and general tension Concerns about the direction of the market in the face of impending rate hikes kept investors on the sidelines.

The selloff hit online gaming stocks, which were dragged down by a disappointing forecast from DraftKings. Golden Nugget online game (NASDAQ: GNOG)Rush Street Interactive (NYSE: RSI) and Penn National Gaming (NASDAQ: PENN) everything came under pressure.

Roku (NASDAQ: ROKU) and Redfin (NASDAQ: RDFN) both also suffered massive declines. Each fell in the wake of its respective earnings report, with the weak indications prompting investors to rush into stocks.

Looking at some of the day’s most notable winners, Appian (NASDAQ: APPN) posted a double-digit percentage gain following the release of better-than-expected results. Earnings also gave Sealed Air a boost (NYSE: SEE)which set a new 52-week high.

Focus on the sector

As industry heavyweight DraftKings delayed its profit plan, online gambling stocks generally lost ground as investors continued to lose patience with the companies’ inability to turn the growing trend. sports betting on the Internet in net success.

DKNG lost nearly 22% the day after its fourth quarter results included a disappointing 2022 forecast. loss for 2022. The company has forecast an adjusted EBITDA loss of $825-925 million for the year.

With this forecast, many DKNG peers also lost ground. Golden Nugget Online Gaming (GNOG) posted a drop of more than 21%. Rush Street Interactive (RSI) fell almost 7%, while Penn National Gaming (PENN) fell 4%.

Outstanding Winner

Shares of Appian (APPN) benefited from better than expected earnings and guidance. On the news, the stock jumped 13%, although it remains close to recent 52-week lows.

The enterprise software maker reported a narrower fourth-quarter loss than analysts had expected. Revenue also beat expectations, rising nearly 29% to $105 million.

The firm also predicted a loss of between $0.12 and $0.15 per share for the first quarter. Analysts were expecting a bigger loss, targeting a level of around $0.19 per share. The APPN’s revenue forecast also exceeded the current consensus, with a figure of between $106 million and $108 million.

APPN rallied $6.37 to end the session at $55.65. Even with the lead, the stock remains within a recent trading range, hovering around a 52-week low at $46.85.

The shares had topped $225 at the start of last year. The stock is now down 73% in the past 12 months.

Outstanding loser

Disappointing earnings and dismal forecasts sparked a wave of Roku (ROKU) stock selling. The stock fell 22%, adding to a long-term decline that began in the middle of last year.

For its latest quarter, the streaming TV provider and electronics maker beat earnings expectations but fell short on the revenue side, despite a 33% year-on-year lead last.

Looking ahead, the company forecast first-quarter revenue of about $720 million, below analysts’ forecast of $756 million. The company also pointed to a likely EBITDA figure of $55 million. In providing its forecast, the company highlighted the continuing problems in the supply chain.

ROKU fell $32.25 to end at $112.47. Although it pared some of its losses, the stock set a 52-week intraday low of $102.60 during the session.

Longer term, stocks rebounded from March 2020 to February 2021. Although they lost momentum from there, the stock recorded a close of $479.50 as recently as July, with a 52-week high of $490.76.

However, as the company’s growth outlook appeared to stagnate and Wall Street turned away from more speculative stocks, ROKU fell out of favor, falling steadily in the second half of 2021 and into 2022.

ROKU is now down about 67% over the past six months.

Notable new peak

Sealed Air (SEE) climbed 3% on strong earnings and upbeat forecasts. With the advance, the stock set a new 52-week high.

While its fourth-quarter revenue was slightly lower than analysts expected, the packaging maker reported 14% revenue growth and delivered an adjusted EBITDA figure that climbed by 18% over last year to $330 million.

Looking ahead, SEE, which makes products like Bubble Wrap, forecast revenue of $5.8 billion to $6.0 billion for 2022. Analysts were targeting a figure of around $5.78 billion.

SEE ended Friday’s session at $69.31, a gain of $1.97 on the day. Earlier in the session, the stock hit a 52-week intraday high of $70.37.

With the advance, the stock has moved above a recent trading range to add to the gains seen in 2021. SEE is now up nearly 59% over the past year.

New notable low

Shares of Redfin (RDFN) cratered despite the release of fourth quarter results that beat expectations on news data. The soft advice sparked a 20% selloff, with the stock hitting a new 52-week low.

Real estate brokerage beat forecasts with its quarterly earnings and revenue, posting a revenue growth rate of over 160%. However, RDFN released a forecast that included a dramatic sequential increase in its net loss.

The firm forecast a net loss in the first quarter of $115 million to $122 million. That compares with a loss of $27 million recorded in the fourth quarter.

RDFN fell $5.78 to close at $22.86. The shares pared their losses at the close, but set a 52-week intraday low of $20.44 at the start of the day.

After a strong rally in 2020 and early 2021, the stock has come under intermittent selling pressure since hitting a 52-week high of $98.44 last February. RDFN has now lost about 76% of its value over the past year.

Looking for more of Wall Street’s biggest winners and losers? Go to the On The Move section of SA.


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