Toast (TOST) stock rises after beating fourth-quarter earnings estimates but announces plans to lay off 550 employees.
Nike (NKE) will also be implementing layoffs, cutting 2% of workers from its global workforce.
Lastly, Yelp Inc. (YELP) shares move lower Friday morning on its weak full-year guidance for 2024.
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Editor's note: This article was written by Luke Carberry Mogan.
Video Transcript
- We're about 30 minutes into the trading day. Let's take a look at how things are shaping up. Stocks lower after producer prices came in hotter than expected, adding to the trend we saw in CPI earlier this week showing inflation may be stickier than anticipated.
Also taking a look at some individual trending tickers.
Shares of restaurant software company Toast jumping today after announcing it's-- in its fourth-quarter report it will cut 10% of its workforce. That's about 550 employees, the company joining the long list of tech names slashing headcount. Toast reported better-than-expected results in the quarter, but growth continued to slow from its 2021 surge.
And another company announcing job cuts, Nike also looking at that stock currently off about 4%. That's after announcing it will cut 2% of its total workforce in an effort to slash costs amid demand pressures, that sluggish consumer demand story still also worrying Oppenheimer, the firm downgrading Nike to perform from outperform, saying they are, quote, "Increasingly concerned about the company's top-line trends over the next few quarters."
Also looking at Yelp, those shares falling after issuing weaker-than-expected guidance for its first quarter as well as the full year in 2024, the company warning that macroeconomic pressures and softer demand impacting its restaurant and retail segments. Yelp did have a very strong 2023 though, with revenue hitting a record $1.34 billion and net income tripling compared to a year ago.
