Jobs report, Twilio plunge, DoorDash rise and more: Friday's 5 things to know
Investors will be carefully watch the stock reactions to the latest results from Twilio, DoorDash and Block
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Here are the key events taking place on Friday that could impact trading.
JOBS REPORT: This week’s key economic report, October’s employment data out at 0830 ET Friday morning, will give investors additional insight into the impact that higher borrowing costs are having on growth.
Economists surveyed by Refinitiv say the U.S. economy likely added 200 thousand new nonfarm jobs in October.
That’s down from 263 thousand the previous month and would mark the weakest job growth since December 2020.
HIRING MAY HAVE SLOWED IN OCTOBER, BUT STILL SOLID
A sign advertises for help The Goldenrod, a popular restaurant and candy shop, in York Beach, Maine. ((AP Photo/Robert F. Bukaty, File) / AP Newsroom)
"We expect to see slower hiring in the October employment report. Payrolls growth is unlikely to match the recent pace," said Bankrate.com senior economic analyst Mark Hamrick. "Since the beginning of 2021, the U.S. economy has added an average of 501k jobs a month. The unemployment rate recently at 3.5% is likely to rise whether in this forthcoming reading or in future months."
TWILIO DROP: Shares are down 20% in premarket trading after the provider of programmable communication tools said fourth quarter revenue is expected to come in between $995 million to $1,005 million, compared with the analyst estimate of $1.07 billion.
The logo of communication company Twilio is displayed at the Collision conference in Toronto, Ontario, Canada. ( REUTERS/Chris Helgren / Reuters Photos)
Organic growth is expected to be 18% to 19% compared to 32% year-over-year in the third quarter.
TWILIO SLASHING 11% OF WORKFORCE IN RESTRUCTURING
On a per-share basis, the San Francisco-based company said it had a loss of $2.63. Losses, adjusted for stock option expense and asset impairment costs, came to 27 cents per share.The results beat Wall Street expectations.
The company posted revenue of $983 million in the period, also exceeding Street forecasts.
DOORDASH SURGE: Shares are 11% higher in premarket trading after the food delivery company said orders surged to a record high in the third quarter as people stuck to their pandemic-era habits despite rising inflation and steeper prices, helping it beat Wall Street targets for revenue.
UBER, LYFT AND DOORDASH REACT TO BIDEN'S GIG WORKER RULE
The DoorDash app is shown on a smartphone. ((AP Photo) / AP Newsroom)
DoorDash saw a 30% rise in gross order value — the total value of all app orders and subscription fees — to $13.53 billion.
It forecast fourth-quarter gross order value of between $13.9 billion and $14.2 billion, and reiterated full-year expectations for the key industry metric.
The company's revenue rose 33% to $1.70 billion in the third quarter, surpassing analysts' estimates of $1.63 billion, according to IBES data from Refinitiv.
BLOCK BEAT: Shares are 14% higher in premarket trading after the company said on a per-share basis, it had a loss of 2 cents. Earnings, adjusted for one-time gains and costs, came to 42 cents per share. The results beat Wall Street expectations.
The average estimate of 11 analysts surveyed by Zacks Investment Research was for earnings of 23 cents per share.
The mobile payments service provider posted revenue of $4.52 billion in the period, also beating Street forecasts. Nine analysts surveyed by Zacks expected $4.48 billion.
EARNINGS REPORTS: A busy week for third-quarter earnings concludes Friday morning with results from integrated health care services firm Cardinal Health, electric utility Duke Energy, chocolate giant Hershey, and sports betting giant DraftKings.