This week, quarterly reports were published of such companies as Palantir Technologies, Rivian Automotive, Peloton Interactive, and Affirm Holdings. And Wells Fargo was heard to have decreased the rating of General Motors. Let's see how the shares of these corporations reacted to the news.

Palantir Technologies’ report undermined its stock quotes

On Monday 9 May, the American developer of software for data analysis, Palantir Technologies, presented its Q1 2022 report. Experts noted a serious decrease in the number of state contracts.

Compared to Q1 2021, Palantir Technologies' earnings saw a 30.8% growth to $446.4 million, which is $2.5 million more than analysts had forecast. The net loss dropped by 17.9% to $101.4 million and the loss per share fell 28.6% to $0.05.

Palantir Technologies expects earnings to grow 25% in Q2, which is 4% less than the consensus forecast. This is the lowest growth index of quarterly earnings since the company entered the exchange.

The stock quotes of Palantir Technologies Inc. (NYSE: PLTR) reacted to the statistics by plummeting 21.31% to $7.46. The price kept falling for two more sessions in a row, to finally rise 9.39% to $7.34 on 12 May.

Rivian Automotive: disappointing quarterly report and news from Ford

On 9 May, another quarterly report for Q1 2022 was shared by electric car manufacturer Rivian Automotive. Earnings in January–March reached $95 million, which was under the expectations of Wall Street analysts who had forecast $133 million.

Net loss reached $1.59 billion, skyrocketing 284%. Revised loss per share amounted to $1.43 against the consensus forecast of $1.49.

The stock price of Rivian Automotive (NASDAQ: RIVN) was undermined not only by the massive rise in its net loss but also by the news that Ford Motor was offloading 8 million out of the 102 million Rivian shares it is holding.

On Monday, trades in Rivian shares closed with a decline of 20.88% to $22.78. A further decline of 9.61% to $20.6 was recorded on 11 May. However, on the next day, the stock quotes rebounded, surging 17.96% to $24.3.

Peloton Interactive report: loss narrowed by 8,700%

On Monday 10 May, Peloton Interactive presented a report for Q3, financial 2022. The corporation owns a large interactive fitness platform and sells workout equipment.

Compared to January–March 2021, the earnings of the company dropped by 14% to $964.3 million, while net loss increased 8,704% to $757.1 million, and loss per share rose 7,466% to $2.27.

On 10 May, a disappointing quarterly report sent the shares of Peloton Interactive Inc. (NASDAQ: PTON) down 8.7% to $12.9. Note that the stock prices had been falling for three sessions in a row even before the report, losing a total of 24.5%. However, on Thursday, the shares rebounded, surging 10.37% to $13.62.

Wells Fargo decreased GM rating

On Wednesday 11 May, after the trading session closed, Wells Fargo analyst Colin Langan changed the rating of the car manufacturer General Motors from “above market average” to “below market average”. Moreover, Langan changed the target stock price of the company from $74 to $33.

Wells Fargo estimates that GM alongside other large car manufacturers can reach the peak of profits in 2022. However, the expenses of the inevitably increasing production of electric cars will only be increasing.

On 12 May, the stock quotes of General Motors Company (NYSE: GM) reacted to the change in the rating by a decline of 4.59% to $35.56. This became the most serious drop in these shares over 52 weeks.

Affirm Holdings: loss narrows by 81%

While waiting for the report for Q3, financial 2022, the shares of Affirm Holdings Inc. (NASDAQ: AFRM) recorded a 41.4% loss over the first three trading sessions of this week. However, after the report was published, they surged 23.31% to $18.04.

The US financial company working with loans reported an earnings increase in January–March of 53.8% to $354.8 million. Wall Street had forecast a result of $344 million. The net quarterly loss of Affirm Holdings narrowed by 81% to $54.7 million and the loss per share shrank 84% to $0.19.

Affirm Holdings expects earnings for Q4, financial 2022 to reach $345–355 million, and $1.33–1.34 billion over the whole year. The company has extended its contract with Spotify and signed an agreement with Stripe.

Summing up

This week, quarterly reports for January–March were published by Palantir Technologies, Rivian Automotive, Peloton Interactive, and Affirm Holdings. The shares of the first three companies on the list reacted by a decline, while the shares of the last one reacted by growth. The stock of General Motors lost almost 5% after Wells Fargo decreased its rating and target share price.


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