Sweetgreen's Profit Push 🌿

Plus. Akamai’s weaker 2024 outlook.

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Today is Friday, May 10, 2024.

The Early Bird Index today is 71.09.

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Sweetgreen's Profit Push 🌿

Salad chain Sweetgreen (NYSE: SG) jumped 16.51% in after-hours trading on Thursday after posting better-than-expected financial results.

Financials: Sweetgreen reported a loss of 23 cents per share in the past quarter, which was worse than expected. But revenue reached $157.9 million, which was better than expected.

Details: Revenue grew 26% in the quarter. The restaurant-level profit margin expanded by 400 basis points to 18%, up from 14% in the prior year period.

Quote: “We remain confident that our strategy positions Sweetgreen for success today as well as for long-term, capital efficient, profitable growth.” - Jonathan Neman, CEO.

Stock Price: Sweetgreen is up over 100% in 2024. The stock has lost over half of its value since its 2021 IPO.

Final Thoughts: The company is still not profitable and there are concerns about consumer spending, but Sweetgreen is finding a way to grow and make investors happy.

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Notable Earnings Today: Enbridge (NYSE: ENB), DigitalOcean (NYSE: DOCN), Construction Partners (Nasdaq: ROAD), AMC Networks (Nasdaq AMCX), DNOW (NYSE: DNOW), Telus (NYSE: TU), TELUS International (NYSE: TIXT), Airsculpt Technologies (Nasdaq: AIRS), AlTi Global (Nasdaq: ALTI), ANI Pharmaceuticals (Nasdaq: ANIP), CRH (NYSE: CRH), Inspired Entertainment (Nasdaq: INSE), Sotherly Hotels (Nasdaq: SOHO), Sylvamo (NYSE: SLVM).

Notable IPOs Today: Zeekr Intelligent Technology Holding Limited (NYSE: ZK), Defiance Oil Enhanced Options Income ETF (Nasdaq: USOY).

Notable Equity Crowdfunding Campaigns Ending Today: Pixi Plus (Netcapital), Ruck Sox (Wefunder), Lightning Motorcycle (Netcapital), Joyhound Beer Company (Mainvest).

Notable Economic Events Today: Michigan Consumer Expectations / Consumer Sentiment (10:00 a.m.  ET), WASDE Report (12:00 p.m. ET), Federal Budget Balance (2:00 p.m. ET).

Akamai’s Weaker 2024 Outlook

Akamai Technologies (Nasdaq: AKAM) fell 10.68% in after-hours trading on Thursday after the cloud company reported mixed financial results.

Financials: Akamai reported earnings of $1.64 per share in the past quarter, which was better than expected. However, the revenue only reached $987 million, which was lower than expected.

Outlook: The company only expects revenue to be in the range of $967 million to $987 million in the current quarter and earnings per share to be in the range of $1.51 to $1.56. These projections were lower than anticipated.

Also: Akamai also lowered its guidance for the full year.

Quote: “Our updated full year 2024 guidance reflects the impacts of the strengthening U.S. dollar, a large social media customer optimizing costs and slowing traffic growth across the industry.” - Ed McGowan, CFO.

Stock Price: Akamai was down 12% this year before the results.

Final Thoughts: It’s tough to trust Akamai right now. A few days ago, the company acquired a security startup for $450 million. There are growth possibilities, but several challenges exist.

Zeekr’s IPO Arrives

Zeekr (NYSE: ZK), a China-based electric vehicle maker, is set to go public today.

Details: The company priced its IPO at $5.1 billion, which is at $21 per share. Zeeker hopes to raise $441 million.

Final Thoughts: IPO stocks can be risky. Some do well, but many go bust. Be careful.

Buyers Wanted: T-Mobile, Verizon in Talks to Carve Up U.S. Cellular (Wall Street Journal)

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.