Stem Shares Plummet Amidst Dismal Earnings and Lowered Forecast

U.S. stock futures surged on Friday, with Dow futures up over 250 points. However, pre-market trading saw significant declines for several major stocks. Stem, Inc. plummeted 18.7% after disappointing Q1 results and lowered revenue guidance. Sprout Social, Inc., Cloudflare, Inc., Trupanion, Inc., Adient plc, and BigBear.ai Holdings, Inc. also experienced substantial losses ranging from 10.1% to 25.2%.

Stem Shares Nosedive on Dismal Earnings and Lowered Guidance

Pre-market trading witnessed a sharp decline in Stem, Inc. (STEM) shares after the company released disappointing first-quarter financial results and reduced its revenue forecast for fiscal year 2024 (FY24).

Stem's quarterly loss per share reached 46 cents, significantly exceeding market estimates of 21 cents. The company's quarterly sales of $25.47 million fell short of consensus estimates of $57.11 million, according to Benzinga Pro.

As a result of these underwhelming figures, STEM shares plummeted by 18.7% to $1.55 in pre-market trading.

Broad-Based Sell-Off in Pre-Market Trading

Stem's poor performance was not an isolated incident. Several other notable stocks recorded significant losses in pre-market trading.

Sprout Social (SPT) shares plunged by 25.2% to $36.00 after the company reported below-expectation first-quarter revenue figures.

Cloudflare (NET) suffered a 14% decline to $76.50 following the release of its first-quarter financial results and FY24 revenue guidance that fell short of estimates.

Trupanion (TRUP) shares retreated by 13% to $20.68 in pre-market trading after the release of its first-quarter results.

Adient (ADNT) dipped by 12.3% to $26.51 after announcing its second-quarter results and lowering its FY24 outlook.

BigBear.ai Holdings (BBAI) shares fell by 12.1% to $1.52 following the release of worse-than-expected first-quarter financial results.

Expedia Group (EXPE) shares declined by 10.1% to $121.92 after the company lowered its full-year guidance.

Open Text Corporation (OTEX) shares retreated by 9.8% to $32.00 after releasing its third-quarter results. BMO Capital downgraded the stock from Outperform to Market Perform and lowered its price target from $50 to $38.

Fortinet (FTNT) shares dropped by 8.3% to $59.81 after reporting its first-quarter financial results.

Custom Truck One Source (CTOS) shares fell by 7.5% to $4.5304 after the company reported below-expectation first-quarter financial results and reduced its FY24 revenue outlook.

Cryoport (CYRX) shares declined by 6.7% to $16.00 after B. Riley Securities analyst Yuan Zhi downgraded the stock from Buy to Neutral and lowered the price target from $22 to $19.

Fluor Corporation (FLR) shares fell by 6.4% to $38.57 following weak first-quarter earnings.

Coinbase Global (COIN) shares declined by 4.4% to $218.80 after the release of its first-quarter earnings.

These pre-market losses indicate a cautious sentiment among investors as they analyze the latest earnings reports and economic data. The performance of these stocks in regular trading hours will provide further insights into market reaction to the recent developments.