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Stocks in focus: Affirm, Under Armour, Zillow

Yahoo Finance's Ines Ferre breaks down how Affirm, Under Armour, and Zillow stocks are performing after recent earnings reports.

Video Transcript

- All right, let's shift gears now to the trending tickers on this Friday morning with Yahoo Finance's Ines Ferre who's been watching all of the market action. A lot of movers including, obviously, those that reported earnings. Affirm, Under Armor, I understand, on your radar.

INES FERRE: Yeah, that's right. Let's take a look at Affirm firm right now. The stock is down about 11%. You can see that on our YFi interactive board.

Yesterday, Affirm, to back up for a second about how their quarterly results were released, they inadvertently tweeted a small portion of those results. Gross merchandise volume more than doubled, revenue up 77%. Then the company released its full results before the market closed.

Its revenue outlook missed expectations and that's why you saw the stock tanking. It actually closed 21% lower yesterday and now today, seeing another 11% drop. Affirm firm has a partnership with Amazon and that's expected to be a growth driver, but there's been some questions in Wall Street around the revenue from that partnership with Amazon, specifically what's called the take rates.

And essentially, that's a yield on each transaction. As far as street reactions concern, Jefferies downgraded this stock to under-perform. DA Davidson, though, upgraded the stock to a buy. And we had on Michael Linford, CFO of Affirm who just spoke with Julie Hyman and Brian Sozzi, and he said, look, acquiring more customers is definitely the focus.

Scaling the company is the focus ahead of reaching short term profitability. So scaling the network on the consumer counts and also on the merchant counts. He said that those investments pay off over time.

Looking at Under Armor, that stock is also under pressure. This is after the company reported its quarterly results beating on the top and the bottom line, as you can see there. But management speaking about the supply chain issues and basically the material impact that this will have on the spring and summer season and maybe beyond that. Gross margin is expected to be down in the current quarter and supply constraints are likely going to reduce revenue by about 10 percentage points.

- And as we're also watching shares of Zillow here actually getting a pop in this session, despite the company posting an $881 million loss, and that now extinct, we should say, home flipping business.

INES FERRE: Yeah, Zillow seeing its biggest daily gain in a year right now. Revenue came in above expectations for the company. Its loss per share came in better than expected. Its first quarter revenue outlook came in better than what the Street had been expected.

And you may be seeing a pop here also because Zillow has been getting rid of some of its inventory. That inventory in part because of its part of that iBuying program. And selling properties has been faster than expected for the company and they've received more money for some of these properties. So the net impact really of winding down that inventory, restructuring costs, the iBuying operations, that's expected to end up being cash flow positive.