Stocks making the biggest moves premarket: Penn Entertainment, Lyft, WeWork and more

Market Insider

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Rick Smith, CEO of Axon Enterprises.
Adam Jeffery | CNBC

Check out the companies making headlines before the bell Wednesday.

WeWork — The stock plunged 25.7% after WeWork said in an SEC filing that there’s doubt about the company’s ability to keep operating amid by weaker-than-expected membership rates. WeWork warned of measures such as a potential bankruptcy or restructuring or refinancing its debt. Its share price, which was below $1 since early this year, dropped to $0.05 in premarket trading.

Carvana — Online used-car retailer Carvana added 7.4% before the bell. Carvana expects adjusted EBITDA for the third quarter to be above $75 million, which is higher than its prior guidance and analysts’ expectations of $46.4 million, according to StreetAccount. The company, which announced a debt restructuring agreement in July, has seen its stock price soar more than 850% so far this year buoyed by short sellers rushing to cover their bets.

Lyft — Shares lost almost 6% premarket after the ride-hailing company announced its second-quarter earnings. Lyft posted revenue of $1.02 billion, in line analyst estimates, according to Refinitiv. Meanwhile, adjusted per share earnings came in at 16 cents, beating estimates of a loss of 1 cent per share.

Penn Entertainment — Shares of the entertainment and casino company gained more than 15% in early morning trading after Disney’s ESPN announced a 10-year deal with Penn to create ESPN Bet, a sports betting site. As part of the deal, Penn will pay ESPN $1.5 billion in cash. Disney’s stock price gained more than 1.8% on news of the deal.

Axon Enterprise — Shares of the military technology developer advanced 13.8% in premarket trading after reporting a beat on earnings and revenue for the second quarter. Axon posted earnings per share of $1.11, flying past analysts’ expectations of 62 cents, according to StreetAccount. Revenue came out at $374.6 million, while analysts expected $350.5 million. JPMorgan upgraded the stock to outperform and assigned a $235 price target, which suggests 34% upside.

Bumble — Dating platform Bumble slid 2.8% even after the company beat expectations for its second quarter on both lines. But Bumble offered weak expectations for adjusted EBITDA in the current quarter. 

DraftKings — The sports betting company saw its shares fall about 4.6% after Disney-owned ESPN announced a partnership with its rival Penn Entertainment on a gambling sportsbook.

Toast — Shares of the restaurant management software platform popped 14% after the company posted second-quarter earnings that topped expectations. Earnings per share of 19 cents surpassed a Street Account estimate of 1 cent per share. Toast reported $978 million in revenue, also exceeding expectations of $943.1 million.

Marqeta — Shares of the payments platform company jumped nearly 19% after Marqeta announced it struck a four-year deal to continue servicing Block’s CashApp. The company also reported a mixed second quarter. Marqeta lost 11 cents per share on $231 million of revenue. Analysts surveyed by Refinitiv were expecting a loss of 9 cents per share on $219 million of revenue.

Akamai Technologies — The cybersecurity company gained 6.4% in premarket trading after it raised its full-year guidance and reported earnings for the second quarter that surpassed Wall Street’s expectations.

— CNBC’s Hakyung Kim, Yun Li, Alex Harring and Jesse Pound contributed reporting.

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