AppLovin soars after Q1 results and Q2 guidance exceed estimates

Blue Owl Capital Corp falls after cutting its dividend

Blue Owl Capital Corp reported lower than expected total investment income in Q1 and declared a dividend of $0.31 per share, down from an announced $0.37 in Q4.

Shares are down nearly 4% in premarket trading.

The business development company managed by Blue Owl Capital is front and center when it comes to worries about private credit, an asset class that’s faced a surge in redemption requests as investors worry about deteriorating loan quality.

This report follows Blue Owl Capital’s results last week, where the firm highlighted strong fee-related earnings and continued capital commitments — effectively, that other parts of their business were more than offsetting any conniptions in private credit. Executives sought to downplay the redemption concerns, describing the recent waves as more "headline driven, not fundamental driven.”

Nonetheless, sentiment toward the asset class remains fragile. Brown University announced last Friday that it is cutting its stake in OBDC by roughly 53%, slashing exposure to one of Blue Owl’s flagship listed credit vehicles even as it maintained holdings in the parent manager.

Hyunsoo Rim2h

DoorDash jumps on better-than-expected Q1 earnings, Q2 order outlook

DoorDash is up more than 10% in premarket trading Thursday after the delivery company beat Q1 earnings estimates and gave a stronger-than-expected Q2 gross order value outlook.

While revenue in the first quarter jumped 33% year on year to $4.04 billion, falling short of analysts estimates of $4.14 billion, earnings per share came in at $0.42 to top the $0.36 estimate. Gross order value — the total dollar value of all orders completed on the platform — rose 37% to $31.6 billion, also above the $31.5 billion expected.

DoorDash said order growth was driven mainly by more its consumer base growing, plus a boost from its acquisition of the British delivery app Deliveroo, which is “seeing the highest growth rates it has in the past four years,” CEO Tony Xu said on yesterday’s earnings call.

The second quarter is “off to a good start” with strong demand, CFO Ravi Inukonda said, and DoorDash now forecasts gross order value of $32.4 billion to $33.4 billion, ahead of analyst estimates of $32.43 billion at the midpoint. The company also expects $770 million - $870 million in adjusted EBITDA, with the midpoint falling short of the $830 million expected. DoorDash cited more than $50 million in expected costs from its driver gas-relief program amid the Iran war-driven surge in oil and gas prices, though it plans to offset at least some of that by “adjusting investment in other areas,” per the statement.

Doordash continues to invest heavily in AI tools and newer categories like electronics, apparel and auto parts, as well as restaurant reservation features through SevenRooms, which it acquired last year.

J. Edward Moreno2h

Snap ends Perplexity deal, says advertising business took a hit from “geopolitical headwinds” in Q1

Snapis down some 10% in premarket trading after its first quarter earnings results hit estimates but pointed to cracks in its advertising business and said it ended an AI deal.

Snap reported reported $1.26 billion in advertising revenue for the first quarter, which was a hair under the $1.27 billion analysts polled by FactSet were penciling in, and included a “$20 to $25 million impact from the geopolitical headwinds in the Middle East experienced during March.”

It reported $1.53 billion in total revenue for the first quarter, which was in line with estimates, and $0.10 adjusted earnings per share — broadly in-line with expectations. Subscriptions, while still a relatively small chunk of revenue, are fueling the company’s sales growth as its advertising business stagnates.

The company told investors it expects revenue in the second quarter to land between $1.52 billion and $1.55 billion, also line with analysts’ estimates, but warned “large advertisers in North America remained a headwind.” That guidance also assumes no contribution from its $400 million deal with Perplexity, which it announced in November and said has now ended “amicably.”

Luke Kawa & J. Edward Moreno15h

Arm Holdings drops after blistering run, as executives say they don’t yet have the supply to meet surging demand

Arm Holdings fell in premarket trading on Thursday after executives said they do not currently have the supply to meet soaring demand for its data center CPUs, which were launched in late March.

Shares initially jumped after the bell yesterday after ARM said it has line of sight to more than $2 billion of customer demand for its AGI CPUs booked across fiscal 2027 and fiscal 2028, “more than double what we stated at launch.” The company said it already has 50% market share for CPU compute among top hyperscalers.

“Soon the data center will be Arm’s largest business,” the company said.

But executives said the company hasn’t yet secured the supply to meet that $2 billion demand. It maintained its AGI CPU revenue outlook of $1 billion “while we pursue supply chain capacity,” its Chief Financial Officer Jason Child told analysts. It also expects to report adjusted earnings per share at $0.40, compared to $0.38 estimates.

The company's shares had been on a blistering run into earnings, gaining 65% in the last month — this morning's dip leaves most of those gains intact.

The company posted an otherwise ho-hum set of quarterly results. For the fourth quarter of its 2026 financial year, Arm reported:

$1.49 billion in revenue, above the $1.47 billion analysts polled by FactSet were expecting. The beat was driven by growth in its licensing segment while its royalties segment missed expectations.
Earnings per share of $0.60, above the $0.58 the Street was penciling in.

Matt Phillips15h

FanDuel parent Flutter rises after reporting better-than-expected Q1 sales and earnings

Flutter Entertainment rose in aftermarket trading Wednesday after reporting better-than-expected Q1 earnings and revenue. The rally recouped losses during regular trading hours that followed a CNBC report on the departure of Amy Howe, the CEO of Flutter’s FanDuel sports betting unit.

Flutter reported:

Q1 revenue of $4.30 billion vs. Wall Street expectations for $4.24 billion.
Adjusted earnings per share of $1.22 vs. the $1.09 forecast, per FactSet.
Adjusted EBITDA of $631 million vs. expectations for $610.9 million.
Full-year sales guidance of $18.31 billion at the midpoint vs. its previous estimate of $18.40 billion and analyst expectations for $18.35 billion.
Full-year adjusted EBITDA guidance of $2.865 billion vs. its previous midpoint estimate of $2.97 billion.

While FanDuel is the leader in the US online sports betting market, it’s considered something of a laggard in prediction markets, an area of fast growth for the industry, in part because it’s exposed to relatively lighter regulation.

(For instance, in most states, gaming commissions limit sports betting to those 21 and older, whereas sports-based events contracts typically have lower age restrictions, thus expanding their potential universe of customers.)

Flutter’s inability to come up with a prediction markets product that investors find convincing has contributed to its falling share price, which is down roughly 50% since the start of the year. Rival DraftKings is down a relatively better 30% over that period.