On Wednesday, there were more well-known corporations announcing layoffs. After announcing a cost-cutting initiative, DoorDash (NYSE:DASH) saw a rise in lunchtime trade.
Workday (WDAY) and Intuit (INTU) both went up in trading during the day after their respective quarterly updates were released.
On the negative side, an analyst downgrade caused Carvana (CVNA) to lose ground during intraday trading.
Following the news that the delivery app is laying off 1250 employees, DoorDash (DASH) gained momentum during lunchtime trading. The company’s CEO said that the problem was caused by the company’s growth due to the pandemic, which made them “not as strict as we should have been in managing our staff growth.” The gig economy stalwart’s stock increased 5% after the news.
Another midday winner was Intuit (INTU), which increased 4% in response to earnings news. The software developer for TurboTax outperformed expectations on both its top and bottom lines in the first quarter. The company said that its Credit Karma business “continued to get worse,” but the rise happened anyway, even though the company’s revenue estimate was low.
In the meantime, Workday (WDAY), which soared 14% on better-than-expected Q3 results, rallied in response to the earnings news. Revenue went up by 20% to $1.6 billion, with subscription revenue going up by 22% to $1.43 billion. The business also disclosed a $500 million stock buyback.
Following a bearish analyst statement, Carvana (CVNA) lost momentum, sliding 6% during intraday trading. With concerns over its liquidity position, Bank of America downgraded the online car dealer from Buy to Neutral.
“The company has good inventory levels, strong consumer demand, and a lack of auto production in North America.” “We think it is well-positioned for high levels of steady growth over the long term and see upside potential in the near term.” However, given its substantial debt load, liquidity problems are serious. According to analyst Nat Schindler, CVNA
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