Fortinet, Hilton, Target: Trending Tickers
Cybersecurity firm Fortinet (FTNT) topped fourth-quarter earnings forecasts on an 8.5% rise in revenue and billings.
Hospitality giant Hilton Hotels & Resorts (HLT) exceeded earnings estimates for the operator's latest quarter. However, the company issued a muted 2024 outlook citing softening travel demand conditions.
Retail titan Target (TGT) is reportedly developing a paid subscription program to compete with Amazon Prime (AMZN) and Walmart+ (WMT), according to Bloomberg.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Angel Smith
Video Transcript
BRAD SMITH: I'm Brad Smith alongside Seana Smith. We're about 30 minutes into the trading day. Let's take a look at how things are shaping up right now. Stocks rising this morning as investors digest a fresh inflow of quarterly earnings, with debate over the timing of interest rate cuts. That still hums in the background.
SEANA SMITH: All right, let's take a look at some of those individual movers. Fortinet jumping this morning on the heels of its quarterly results. Now we're looking at shares of just about 2%, have been up about 10% in pre-market trading. Now, the cybersecurity company beating the Street's expectations, reporting stronger than expected revenue and billings. That grew 8.5% results. Defying some of the fears of an ongoing slowdown after cyber spending continued to slow last year.
BRAD SMITH: And Hilton, shares moving to the upside right now by about 6/10 of a percent. The hotel operator posted a beat on both the top and bottom line reported softer 2024 guidance, thanks to higher expenses and signs of slowing demand for leisure travel across the US. For a deeper dive, though, into the company's latest earnings report, I'll speak with Hilton CEO Chris Nassetta at 11:50 AM Eastern time today. You do not want to miss that.
SEANA SMITH: We surely do not. And then, we're also taking a look at Target seeing a nice pop this morning. The retailer reportedly weighing the idea of rolling out a new paid membership program that competes with the likes of Amazon Prime and also Walmart Plus. This is according to Bloomberg. You're looking at a move of nearly 2% here, about 30 minutes into the trading day.
But this has been rumored now for some time. There has been talk that Target should have a subscription service similar to its rivals, given the fact that Walmart and Amazon has been so successful with many of those subscribers, those recurring types of orders. So I think if Target is able to execute this, and if, in fact, this report is true, it could be good news here then for shareholders.
BRAD SMITH: I am so surprised that this hasn't already been in the market. I mean, I've practically purchased-- I mean, furnished an entire apartment from Target-- a previous one, not this current one. But Target-- Tar-jay-- has some very valuable stuff for the apartment dwellers here in New York City. But no doubt, it's a larger question of what type of pricing mechanism they would put on this, what the rewards profile would be, and the redeemability of many of those compared to some of the other offerings that are currently in market from either Costco and the membership program that you've got there, or Walmart as you mentioned a little bit more, analogous or synonymous.
SEANA SMITH: Yeah, and also just points to the fact that they're looking for ways to stem some of the losses or the declines that the business has seen. We talk a lot about the fact that consumers are under pressure. They're no longer spending the bulk of their money here on discretionary items. Instead they're being forced to only spend on consumer staples. Target, one of the companies that have been challenged just a bit, given that shift that we've seen in spending. So something like this, a subscription service that really is centered more around staples could potentially boost the business.
BRAD SMITH: Some sort of guaranteed revenue, at least in those line items.
