STOCK MARKET NEWS: Fed signals more rate hikes, Tesla’s California surprise, Nvidia forecast

Lucid Group Inc on Wednesday forecast 2023 production well short of analysts' expectations and reported a major drop in orders during fourth quarter, sending the electric carmaker's shares down 11% after hours.

Lucid said it expects to produce 10,000 to 14,000 luxury electric vehicles this year, up from 7,180 cars last year. Analysts on average expected the company to make 21,815 cars, according to Visible Alpha.

The company, backed by Saudi Arabia's sovereign wealth fund, Public Investment Fund (PIF), delivered 4,369 cars last year, far lower than the 7,180 units it produced.

The company said it had more than 28,000 orders as of Feb. 21, down 6,000 reservations from the second quarter, after it delivered about 1,900 vehicles and saw cancellations.

Chip designer Nvidia Corp forecast first-quarter revenue above Wall Street estimates on Wednesday, expecting the artificial intelligence boom to drive up sales of its data center chips, sending its shares up nearly 7% in extended trading.

The world's largest supplier of graphics processing units (GPUs) is ramping up production of its data center chip, also used in artificial intelligence — a priority now for large tech companies from Microsoft to Alphabet's Google.

Analysts believe Nvidia is best placed to capitalize on this boom as it dominates roughly 80% of the GPU market.

GPUs are used to speed up certain tasks in a computer as well as improve the quality of visuals in games.

The company forecast current-quarter revenue of $6.50 billion, plus or minus 2%. Analysts on average expect $6.33 billion in revenue, according to Refinitiv data.

Revenue in the quarter ended Jan. 29. was $6.05 billion, compared with analysts' average estimate of $6.01 billion.

Dutch Bros reported fourth quarter revenue grew 44.1% to $201.8 million, topping the analyst estimate of $195.76 million.

Company-operated shop revenues increased 53.7% to $175.5 million, as compared to $114.2 million in the same period of 2021.

The net loss for the three months ended Dec. 31 was $(2.8) million as compared to $(8.2) million in the same period of 2021.

Earnings per share was 3 cents, lower than the estimate of 7 cents.

Reuters contributed to this report.

Ecommerce company EBay Inc on Wednesday forecast first-quarter revenue above Wall Street estimates on hopes that cost-conscious shoppers would be attracted towards its used and refurbished product category in the face of a looming recession.

Shares of the San Jose, California- based company rose nearly 2% in trading after the bell.

The company forecast current-quarter revenue between $2.46 billion and $2.50 billion.

Analysts are expecting $2.37 billion.Ebay's innovation, which includes a shift to expanded categories of collectibles, refurbished products as well as luxury goods such as watches, handbags and sneakers is helping it to drive sales at a time when economic uncertainty is weighing on most businesses. The company has also raised its game by investing in motors parts and accessories.

However, gross merchandise volume (GMV), a widely watched figure for the e-commerce industry's performance, fell 12% to $18.2 billion in the fourth quarter.

EBay posted revenue of $2.51 billion for the quarter ended Dec. 31, compared with analysts' estimate of $2.47 billion, according to Refinitiv IBES data.

Net income fell to $672 million, or $1.23 per share for the Sept-Dec period, from $1.97 billion, or $3.25 per share, a year earlier.

The supervisory board of SAP SE has nominated Punit Renjen to stand for election as a new member of the supervisory board and proposes Renjen as the designated successor to Chairman Prof. Dr. Hasso Plattner.

With this decision, Plattner and the Supervisory Board initiate the succession process.

The next step is for shareholders to decide upon Renjen's candidacy at the annual general meeting on May 11, 2023.

Plattner's term expires in May 2024.

Plattner co-founded SAP in 1972 – together with Dietmar Hopp, Claus Wellenreuther, Klaus Tschira, and Hans-Werner Hector – and has served as chair since 2003.

Bumble Inc beat fourth-quarter revenue estimates on Wednesday, as more people subscribed to its dating app during the holiday season in search of companionship.

The company reported revenue of $241.6 million in the quarter ended Dec. 31, compared with analysts' estimate of $235.9 million, according to Refinitiv data.

Total paying users increased 14.4% to 3.4 million, compared to 3.0 million. The net loss was $159.2 million or (65.9)% of revenue, compared to net loss of $13.9 million, or (6.7)% of revenue.

For the first quarter 2023 Bumble expects:

• Total revenue in the range of $238 to $243 million.

• Bumble App revenue of $190 to $193 million.

• Adjusted EBITDA in the range of $53 to $56 million.

Tesla CEO Elon Musk made a surprise appearance with California Gov. Gavin Newsom.

Electric-vehicle maker Tesla Inc will make its global engineering headquarters in California, Chief Executive Elon Musk and California Governor Gavin Newsom announced on Wednesday.

Tesla in December 2021 moved its corporate headquarters from Silicon Valley’s Palo Alto, California, to Austin, Texas, where it is operating a new car factory. Musk's SpaceX rocket company also has a launch site in the southern tip of Texas.

Billionaire Musk himself moved from Los Angeles to the Lone Star State, which does not have state income tax.

But the company's first factory was in the San Francisco Bay Area city of Fremont, and Musk said on Wednesday that it would produce more than 600,000 vehicles this year.

California remains a key source of talent for tech companies , and the Tesla engineering headquarters will be in a former Hewlett Packard building in Palo Alto. "This is a poetic transition from the company that founded Silicon Valley to Tesla," Musk said.

Dick’s Sporting Goods is acquiring outdoor retailer Moosejaw from Walmart. The acquisition expands Dick's outdoor portfolio — currently led by its specialty retailer, Public Lands — and reaffirms its commitment to the long-term business opportunity in the growing multibillion-dollar outdoor category.

Moosejaw, founded in Michigan in 1992, operates a highly successful e-commerce platform, has a loyal customer base, strong vendor relationships with leading outdoor brands and a passionate workforce.

Moosejaw also operates brick-and-mortar locations in Arkansas, Colorado, Illinois, Kansas, Michigan and Missouri. 

The deal is expected to close in March 2023.

Wix.com Ltd. on Wednesday reported a loss of $39 million in its fourth quarter.

On a per-share basis, the Tel Aviv, Israel-based company said it had a loss of 67 cents. Earnings, adjusted for stock option expense and non-recurring costs, were 61 cents per share.

The results exceeded Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of 8 cents per share.

The cloud-based web development company posted revenue of $355 million in the period, also exceeding Street forecasts. Nine analysts surveyed by Zacks expected $351.7 million.

For the year, the company reported a loss of $424.9 million, or $7.33 per share. Revenue was reported as $1.39 billion.

For the current quarter ending in March, Wix.com said it expects revenue in the range of $367 million to $371 million.

Wingstop Inc. on Wednesday reported fourth-quarter earnings of $17.6 million.

The Addison, Texas-based company said it had profit of 59 cents per share. Earnings, adjusted for non-recurring costs, came to 60 cents per share.

The results topped Wall Street expectations . The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of 42 cents per share.

The restaurant chain posted revenue of $104.9 million in the period, also surpassing Street forecasts. Eight analysts surveyed by Zacks expected $101.7 million.

For the year, the company reported profit of $52.9 million, or $1.77 per share. Revenue was reported as $357.5 million.

Microsoft announced in a blog on Wednesday it was taking its chatbot technology to its Bing and Edge Internet browser’s smartphone apps.

According to the world's largest software marker, 64% of searches occur on mobile phones, and "we are releasing all new Bing and Edge mobile apps to serve as your copilot for the web even when you are away from your desktop."

Microsoft’s new artificial intelligence capabilities could give them a leg up on Google’s recently launched Bard, an experimental conversational AI service and app that draws on information from the web to provide fresh, high-quality responses.

Microsoft is up over 5.% year-to-date and Google up more than 2%.

Intel Corp said on Wednesday it would lower its quarterly dividend as a part of its strategy to improve capital amid uncertain times.

The company had in January warned it would lose money in the first quarter as two of its most important markets — personal computers and data centers — were weakening after two years of strong growth during the pandemic-led remote work.

Intel has committed to reduce $3 billion in costs this year and between $8 and $10 billion in savings by the end of 2025.

The company, which reaffirmed its first-quarter forecast issued in January, said it will cut the quarterly dividend to $0.125 per share, or 50 cents annually.The dividend will be payable on June 1 to stockholders of record on May 7.

Amazon.com Inc said on Wednesday it had completed its $3.5 billion takeover of primary care provider One Medical, a day after a U.S. Federal Trade Commission (FTC) official announced that the agency would not challenge the deal.

The acquisition , announced last July, gives the online retailer a virtual health offering as well as offices for in-person medical services for the first time.

It reflects Amazon's long-held ambition to greatly simplify how consumers navigate healthcare in the United States, a lofty goal it has yet to realize even as the company has rolled out a virtual pharmacy and other programs.I

In a statement, Amazon's Chief Executive Andy Jassy said the deal would help the company improve, speed up and personalize care for patients. "If you fast forward 10 years from now, people are not going to believe how primary care was administered," he said.

La-Z-Boy topped Wall Street revenue and profit estimates.

Fiscal third quarter consolidated sales were flat at $572.72 million; analysts expected $529.57 million.

Written same-store sales for the retail segment increased 3%.

Net income for the three months ended Jan. 28 was $39.23 million, up from $28.74 million.

Adjusted earnings were 91 cents​​ per share for the quarter ended in January. The mean expectation of three analysts for the quarter was for earnings of 66 cents per share.

Reuters contributed to this report.

Fiat, Ram and Peugeot maker Stellantis beat profit forecasts on Wednesday due to strong car prices and greater-than-expected merger benefits, but warned of pricing pressure as industry-wide supply chain problems ease.

Automakers globally have been hit by several supply problems stemming from the global coronavirus pandemic, with the worst a shortage of semiconductor chips that has hit their production.

Amid strong demand, that shortage has allowed carmakers to raise prices and Stellantis said its full-year 2022 operating profits had jumped 29%, despite a 2% drop in vehicle deliveries.

Stellantis's adjusted second-half earnings before interest and tax (EBIT) grew 17% to 10.95 billion euros, topping a consensus estimate of 9.63 billion euros in a Reuters poll of analysts.

The margin on adjusted EBIT was 12% in the second half, down from 14.1% in the first six months of the year. But the company still met its target for a "double digit" margin last year.It reiterated the same margin target for 2023, as well as one for positive cash flows.

Walmart customers continue to wrestle with high food inflation which is showing little signs of abating.

Starbucks is rolling out a new line of drinks called Oleato with two key ingredients.

Citigroup is less pessimistic on the U.S. economy in a new updated forecast.