The release of another hotter-than-expected inflation report triggered a stock selloff on Thursday, as investors worried that the Federal Reserve will need to continue its hawkish stance to get price increases under control. The S&P 500 fell 1.4%.
Online retailers were among the casualties, hurt by an earnings report from Shopify. Etsy (ETSY), Wayfair (W), Farfetch (FTCH), Overstock.com (OSTK) and Chewy (CHWY) all finished lower.
RingCentral (RNG) represented another standout decliner, with shares losing nearly a quarter of their value following the release of the firm’s financial figures.
Looking to the upside, TravelCenters of America (TA) jumped more than 70% to reach a new 52-week high after inking a deal to be acquired by BP (BP). Meanwhile, Twilio (NYSE:TWLO) posted a double-digit percentage gain following its earnings report.
Sector In Focus
A weak forecast from Shopify prompted selling among online retail stocks. Shares of the e-commerce platform finished lower by nearly 16%, dragging down other names in the group.
Etsy (ETSY) was another standout loser in the sector, dropping by more than 8%. Shares of the online auction platform were further dented by a negative report from short-seller Citron Research.
Elsewhere in the group, Wayfair (W) and Farfetch (FTCH) also tumbled around 8%. Overstock.com (OSTK) dropped 6%, while Chewy (CHWY) fell almost 4%.
Standout Gainer
The release of Street-beating earnings prompted a surge in Twilio (TWLO), with the stock advancing more than 14%.
The provider of programmable communication tools reported a non-GAAP profit for Q4, compared to a loss projected by analysts. Revenue climbed 21% to reach $1.02B.
The firm also issued a strong Q1 forecast, along with announcing a $1B stock repurchase plan. TWLO predicted adjusted EPS of $0.18-$0.22, while analysts were looking for $0.01.
TWLO soared $9.41 to close at $75.45. This added to a recent updraft, with shares climbing nearly 37% in the past month and almost 50% so far in 2023. However, for the past year, the stock remains lower by about 56%.
Standout Decliner
RingCentral (RNG) experienced substantial selling pressure after it issued a disappointing revenue figure and a weak forecast. Shares plummeted 23% on the news.
The communication services provider beat projections with its Q4 earnings. However, revenue came up short of expectations, despite rising 17% from last year to reach $525M. Looking ahead, the company predicted a top-line figure between $2.18B and $2.20B, compared to a consensus of $2.33B.
Hurt by the downbeat forecast, RNG fell $11.34 to finish at $37.07. This reversed gains seen earlier in the month, with the stock recording its lowest close since late January.
Looking longer-term, shares remain 7% higher for 2023. However, over a 12-month span, RNG has dropped 76%.
Notable New High
The announcement of a deal to be acquired by BP (BP) sent shares of TravelCenters of America (TA) skyrocketing to a new 52-week high. The stock jumped almost 71% on the news.
The operator of travel centers and truck stops, which owns a network of about 281 highway sites, reached an agreement to be acquired or $86 per share in cash. This equates to a total value of about $1.3B.
TA finished Thursday’s trading at $84.43, surging $34.99 on the day. During the session, the stock touched an intraday 52-week high of $84.60. Overall, shares have climbed more than 93% in 2023 so far.
For more on the day’s biggest winners and losers, head over to Seeking Alpha’s On The Move section.
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