A Triple Triumph: 3 Market Leaders Break Into Profitability — Here's Who Defied The Odds

The second quarter’s earnings season ushered a wave of surprises in the stock market, with three high-profile companies reaching a crucial milestone – turning profitable for the first time.

The rising stars capturing investors’ attention are Robinhood Markets, Inc. HOOD, Uber Technologies, Inc. UBER, and Wayfair Inc. W.

How Did Uber, Robinhood And Wayfair Report In Q2?

Uber announced $0.18 earnings per share (EPS), comfortably above analysts’ expectations of a $0.01 loss. This was Uber’s first profitable quarter in company history. Despite reaching an all-time high of $9.23 billion for the quarter, sales fell just shy of the projected $9.33 billion.

Robinhood surprised the market by announcing an EPS of $0.03, beating the consensus estimate of $(0.01). Revenues for the firm also excelled, reaching $486 million, beating Street projections by $13 million.

Wayfair reported an EPS of $0.21, well above the consensus estimate of $(0.732). Wayfair’s revenues also surprised to the upside, coming in at $3.17 billion compared to the expected $3.1 billion.

Stocks Reactions

Uber and Robinhood faced some initial backlash from the market, with their stocks dropping 3% and 8%, respectively.

Despite several analysts raising their price targets, the lower-than-expected sales outcome dampened market excitement for Uber.

Robinhood declined owing to a 5% drop in transaction-based income in the second quarter compared to the previous year, as well as a drop in monthly active users (MAUs) to 10.8 million, or around 3.2 million less than the previous year.

The real star was Wayfair, jumping over 20% after its Q2 results. While active customers for the period fell on a year-on-year basis, net revenue per active customer increased, and costs declined, leading to improved profit margins.

Wayfair‘s extraordinary surge may also be attributed to a short squeeze. The company currently screens as the most shorted stock in the Russell 1000 Index, with a short-to-float ratio of 47.38%, as reported by Benzinga Pro.

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Chart: Wayfair Soars 22% After Q2 Results, Jumps To May 2022 Highs

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