US markets opened higher on Wednesday after the latest figures from the US Labor Department showed that inflation climbed ahead of analyst expectations in April. The Consumer Price Index rose by 8.3% compared to the same month last year, piling pressure on the US Federal Reserve to step in with monetary policy measures.
Gold, oil and Bitcoin were all trading higher on Wednesday morning
Here are today's trending stocks:
Roblox (NYSE: RBLX)
Online gaming platform Roblox is hitting the headlines on Wednesday morning after unleashing its latest earnings update.
The release made for negative reading, with revenue and loss per share both falling short of analyst expectations. The company also cautioned that losses are expected to continue across the coming quarters, with the business being hit by higher costs and player numbers falling back from pandemic highs.
Even so, Roblox’s share price has shot up since the opening bell, having climbed by more than 20% at the time of writing. The stock price is still down over the past week, indicating that investors likely anticipated a worse earnings update from the gaming giant.
Wendys Co (NYSE: WEN)
This famous Ohio-based hamburger outfit appears to have lost some investor confidence this morning after a disappointing set of earnings.
Wendys reported first-quarter revenue growth of more than 6%, but this fell short of analysts’ expectations. Adjusted profits per share were also lower than anticipated, with the business having been held back in the period by higher costs for supplies and labor.
Even so, the company sought to emphasize that the three-month period had seen it open 90 new restaurants, leaving it on track to reach its planned net unit growth goal of 5 to 6 percent for the year.
The fast-food chain’s share price was down by nearly 10% in early trading on Wednesday.
Chicken Soup for the Soul Entertainment (NASDAQ: CSSE)
This streaming specialist has seen its share price pushed into the green on Wednesday after announcing a new acquisition. The business has confirmed it has agreed a deal to snap up video rental outfit Redbox.
The company said the acquisition would create a business with more than 38,000 kiosks nationwide, extensive digital capabilities, and access to millions of targeted customers, including nearly 40 million Redbox Perks members.
CSSE chairman and CEO, William J Rouhana Jr., commented:
“Today marks a transformative moment for Chicken Soup for the Soul Entertainment and an inflection point for the ad-supported streaming industry. Our acquisition of Redbox will accelerate the scaling of our business as it combines complementary teams and services to create the streaming industry’s premier independent AVOD.”
The company’s shares were up by 4.29% at the time of writing.
Fiverr International Ltd (NASDAQ: FVRR)
Freelance work marketplace Fiverr has seen its share price tank on Wednesday morning as investors were disappointed by the firm’s earnings update. Record revenues may have impressed but the company updated its full-year guidance to reflect what it called the uncertain macro environment across the full year.
Adjusted EBITDA is now seen as falling between $10.0m and $17.0m, far below previous guidance of between $27.0m and $33.0m. Meanwhile, revenue guidance was cut by nearly $30m.
Fivver president and CFO, Ofer Katz, said:
“Our solid results in the first quarter demonstrate the resilience of our business and ability to execute amid volatile macro conditions. We are very pleased with the ongoing momentum in Fiverr Business and the exciting upmarket opportunities ahead of us. Our strong balance sheet and disciplined financial strategy provides a solid foundation for us to continue investing for growth and long-term shareholder value.”
FVRR stock was down by nearly 20% on Wednesday morning.
MicroStrategy Incorporated (NASDAQ: MSTR)
This business intelligence, mobile software, and cloud-based services provider has seen its share price dip after the opening bell. It comes after media reports suggested that the company’s crypto strategy has placed it in a high degree of peril.
MicroStrategy’s business model entails snapping up and holding on to large amounts of Bitcoin, but the cryptocurrency’s value is currently hovering around the $31,000 that constitutes the average price at which it has bought up the digital currency.
Early trading on Wednesday has seen the company’s share price drop by more than 6%.