US OPEN: Wall Street opens mixed on Thursday, Lyft and Zillow skyrocket after the earnings

• Wall Street has mixed open on Thursday
• Lyft shares skyrocket after beating expectations and announcing a strategic partnership for autonomous vehicles
• Zillow Group shares surge after strong Q3 results

US equities open higher, with the Nasdaq 100 leading gains, up 0.71%. S&P 500 is gaining 0.21% with the Russell 2000 down only 0.2%. In Europe the indices are green today. Polish W20 is leading with 3.33% gain, followed by German DAX40 (+1.36%) and Spanish SPA35 (+0.91%). French CAC40 gains 0.67%, while British UK100 is flat.

Lyft shares jumped 28% to $18.41 after beating Q3 revenue expectations and announcing a strategic partnership for autonomous vehicles. Zillow Group shares surged 18% after reporting strong Q3 results and narrowed losses. Duolingo shares fell over 5% to $300 in after-hours trading despite beating Q3 earnings expectations, as subscriber growth slightly missed estimates only to recover at the start of session. Albemarle shares slightly higher after reporting a substantial Q3 loss amid plunging lithium prices.

Current volatility observed on Wall Street. Source: xStation 

The Nasdaq-100 index, represented by the US100 contract, is currently trading just above the prior high of 20,895.2, which serves as initial support for bulls. For bears, the key support levels are the recently surpassed high and the mid-October high. If these levels break, bears could target the 50-day SMA.

The RSI shows signs of bullish divergence and is forming a cup and handle pattern. If it reaches the 70-point level, it may signal strong bullish momentum. The MACD provided a buy signal yesterday, and the 50-day SMA is widening above the 100-day SMA following a bullish crossover, reinforcing underlying bullish momentum. Source: xStation 5

News:

• Zillow Group (Z.US) shares surged 18% after reporting strong Q3 results and narrowed losses. The real estate technology firm posted revenue of $581 million, up 17% year-over-year, outperforming the broader real estate industry's 2% transaction value growth. Despite ongoing housing market challenges, the company maintained its full-year guidance for double-digit revenue growth and provided Q4 revenue guidance of $525-540 million. The stock has gained 40% since naming former COO Jeremy Wacksman as CEO in August, benefiting from falling U.S. mortgage rates which recently dropped to 6.91% from their 2024 peak of 7.52%. 

Q3 Results:

• Revenue: $581M, +17% YoY
• Net Loss: $20M vs $28M last year
• Q4 Guidance: $525-540M
• Stock Performance: +40% since CEO appointment

• Lyft (LYFT.US) shares jumped 28% to $18.41 after beating Q3 revenue expectations and announcing a strategic partnership for autonomous vehicles. The ride-hailing company reported revenue of $1.52 billion, up 32% year-over-year and above the $1.44 billion consensus, though it missed earnings estimates. The company achieved record active riders of 24.4 million and announced partnerships with Mobileye, May Mobility, and Nexar to launch autonomous vehicle services in Atlanta by 2025. A new DoorDash collaboration will provide exclusive benefits to DashPass members using Lyft. 

Q3 Earnings:

• Revenue: $1.52B vs $1.44B expected
• EPS: -$0.03 vs $0.20 expected
• Active Riders: 24.4M, +9% YoY
• Gross Bookings: $4.1B, +16% YoY

• Albemarle (ALB.US) shares slightly higher after reporting a substantial Q3 loss amid plunging lithium prices. The world's largest lithium producer posted a net loss of $1.11 billion ($9.45 per share) compared to a profit of $302.5 million last year, as lithium prices dropped 71%. In response, the company announced significant cost-cutting measures, including a 6% workforce reduction expected to save $300-400 million annually, and halved its 2025 capital budget to $800-900 million. Despite near-term challenges, the company noted record North American EV sales in Q3 and expects EV prices to match traditional vehicles by next year. 

Q3 Results:

• EPS: -$9.45 vs -$0.44 expected
• Revenue: $1.4B vs $1.37B expected
• YTD Performance: -20.91%
• Cost Savings Target: $300-400M annually

• Duolingo (DUOL.US) shares fell over 5% to $300 in after-hours trading despite beating Q3 earnings expectations, as subscriber growth slightly missed estimates to recover at the start of session. The language learning platform reported EPS of $0.49 on revenue of $192.6 million, significantly above consensus estimates of $0.35 and $189.2 million respectively. The company reached 37.2 million daily active users, up 54% year-over-year, and provided upbeat Q4 revenue guidance of $204 million. Management highlighted strong adoption of its AI-powered Video Call feature and Duolingo Max subscription tier, though paid subscribers of 8.6 million fell short of the 8.66 million expected. 

Q3 Results:

• EPS: $0.49 vs $0.35 expected
• Revenue: $192.6M vs $189.2M expected
• Daily Active Users: 37.2M, +54% YoY
• Paid Subscribers: 8.6M, +47% YoY

Other news coming from individual S&P 500 index companies. Source: Bloomberg Financial LP