Stock futures including the S&P 500 are trading lower which suggests the markets might experience a pullback today. The weakness was attributed to the mixed earnings results of major retailers. The S&P 500 Index has seen futures contracts move lower after it ended at a record high for the fifth consecutive day on Aug. 16.
Shares of retail giant $WMT-Walmart are down 0.11% in pre-market, at the time of writing after the big-box retailer posted Q2 results that surpassed Wall Street estimates. Walmart also raised its guidance for 2021. The federal benefits received by individuals as well as strong e-commerce revenue helped Walmart increase comparable sales in the U.S. by 5.5%. However, this figure was lower than the 9.9% growth witnessed in the prior year's quarter.
Alternatively, $HD-Home Depot missed consensus estimates in Q2 as comparable sales rose 4.5% year over year, lower than forecasts that expected a 5.5% growth. Home Depot's miss might also suggest that housing market activity is decelerating after the company saw a strong uptick in sales just after the onset of COVID-19. Home Depot stock is down 3.5% in pre-market trading, at the time of writing.
Roblox stock is down 7.2% post-earnings after earnings and revenue miss
Shares of Roblox have are down over 7% in pre-market today after the company missed earnings and revenue estimates in the June quarter. It reported revenue of $454.1 million compared to the Wall Street forecast of $689.2 million. The company also reported a loss per share of $0.25 compared to estimates of earnings of $0.23 per share.
Roblox managed to increase its net bookings by 35% year over year to $665.5 million. The company also ended Q2 with record operating and free cash flow despite a negative net income figure.
Another stock that is trending in pre-market is investor favorite, $TSLA-Tesla. The electric vehicle giant was down 4.3% yesterday and declined by 2.1% at the time of writing. This weakness in TSLA stock can be attributed to Bernstein analyst Toni Sacconaghi who explains that Tesla is not valued as an automobile company.
According to Sacconaghi the valuation per car delivered by Tesla is 50x higher compared to legacy auto manufacturers. Despite its envious growth profile, the analyst believes Tesla stock is overvalued at current prices.
Reddit stocks: AMC, CLOV, and BB remain popular
According to the Utradea Reddit dashboard, the top three stocks that remain popular among users of the social media platform include $CLOV-Clover Health, $AMC-AMC Entertainment, and $BB-BlackBerry. Clover Health stock is down 1.9% while AMC Entertainment and BlackBerry have fallen by 2.2% and 0.3% respectively in pre-market today.