Key insights
- Super Micro Computer is plunging due to a planned $7 billion stock offering to fund increased production of Nvidia-powered servers, signaling strong demand but also potential stock dilution. Chewy cut its full-year sales forecast and missed EBITDA margin expectations, indicating pressure on premiumization. Cracker Barrel surged on better-than-expected earnings and raised revenue guidance, driven by a successful rebranding effort.
Yahoo Finance's Julie Hyman takes a closer look at some of Wednesday's trending tickers and stories, including Super Micro Computer (SMCI) stock plunging, Chewy (CHWY) cutting its full-year outlook, and Cracker Barrel (CBRL) stock surging.
We're watching Super Micro, Chewy and Cracker Barrel. Now, Super Microcomputer, those shares are down 14% and that's because the company is planning to raise money by bringing some stock to market. $7 billion is the target of what they are trying to raise and they're doing it because they're trying to fulfill customers orders here. Um and Super Micro remember makes um servers that have Nvidia chips in them. um and that they're trying to buy more equipment to make up these servers here. So
on the one hand analysts say this is a sign that they've got demand for their servers and they need to outfit them. On the other, if you got more supply of stock coming, that can tend to put some pressure on shares, which is what's happening.
Um let's talk about Chewy, the pet goods retailer. Those shares down about a percent today. Now, a couple of different things going on with Chewy, the company did cut its full-year sales forecast, but originally, um the shares have been holding up a little bit better.
Now, um as they after they talked on the conference call, um there were some things that the market is focusing on.
The company is saying it quote sees a modest level of incremental pressure on premiumization and product attach rates. Um so that can be an indicator perhaps about the sustainability of certain levels of sales. Uh the company's adjusted EDA margin is predicted in the second quarter to be 6.3 to 6.4%. Analysts have been looking at closer to 6.8%.
And then finally Cracker Barrel. Remember Cracker Barrel got a lot of attention for changing its logo. Um now the company's out with numbers that beat estimates and the shares are up by almost uh 26% here. The company raising its full-year revenue guidance. Um it had seen some declines in store traffic previously, but those are moderating. Um the shares are up a record amount by the way in today's uh session.
They've kind of returned to their roots in order to try to bring some of that traffic back, uh leaning into their sort of quirky, kitschy, um decor that they both have in their restaurants and also sell. and they are also had brought back their country ham dinner, which was one of their classic offerings. So that's something that um is working for them and working for the shares today too.