The second quarter’s earnings season ushered a wave of surprises in the stock market, with three high-profile companies reaching a crucial milestone – turning profitable for the first time.

The rising stars capturing investors’ attention are Robinhood Markets, Inc. (NASDAQ:HOOD), Uber Technologies, Inc. (NYSE:UBER), and Wayfair Inc. (NYSE:W).

How Did Uber, Robinhood And Wayfair Report In Q2?

Uber announced $0.18 earnings per share (EPS), comfortably above analysts’ expectations of a $0.01 loss. This was Uber’s first profitable quarter in company history. Despite reaching an all-time high of $9.23 billion for the quarter, sales fell just shy of the projected $9.33 billion.

Robinhood surprised the market by announcing an EPS of $0.03, beating the consensus estimate of $(0.01). Revenues for the firm also excelled, reaching $486 million, beating Street projections by $13 million.

Wayfair reported an EPS of $0.21, well above the consensus estimate of $(0.732). Wayfair’s revenues also surprised to the upside, coming in at $3.17 billion compared to the expected $3.1 billion.

Stocks Reactions

Uber and Robinhood faced some initial backlash from the market, with their stocks dropping 3% and 8%, respectively.

Despite several analysts raising their price targets, the lower-than-expected sales outcome dampened market excitement for Uber.

Robinhood declined owing to a 5% drop in transaction-based income in the second quarter compared to the previous year, as well as a drop in monthly active users (MAUs) to 10.8 million, or around 3.2 million less than the previous year.

The real star was Wayfair, jumping over 20% after its Q2 results. While active customers for the period fell on a year-on-year basis, net revenue per active customer increased, and costs declined, leading to improved profit margins.

Wayfair‘s extraordinary surge may also be attributed to a short squeeze. The company currently screens as the most shorted stock in the Russell 1000 Index, with a short-to-float ratio of 47.38%, as reported by Benzinga Pro.

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Chart: Wayfair Soars 22% After Q2 Results, Jumps To May 2022 Highs

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