Wall Street Watch Thursday: Kayak Floats Downstream
First impressions matter, especially these days when many high profile IPOs are falling out of favor with the same investors that couldn't wait for these dot-com darlings to go public.
Kayak Software (KYAK) has only been public for a month, but it's already paddling in the wrong direction.
The travel website that scours the Internet for airline fares, hotel rates, and other getaway essentials posted its first quarterly report as a public company on Wednesday night. It failed to impress. Revenue may have soared 36% and profitability nearly doubled, but Wall Street was targeting net income of $0.26 a share. Kayak's net income only clocked in at $0.19 a share.
The most successful investments over time are the companies that routinely land ahead of analyst projections. Investors will now have to wait three months to see if Kayak can redeem itself. Bargain-seeking travelers, on the other hand, can hit up the site right now to check on the cheapest roundtrip to Sydney.
Other Things Worth Watching
Rambus (RMBS) is getting a little lighter. The patent-rich technology company is letting go of 15% of its workforce, primarily in the area of support infrastructure. Rambus -- which licenses its technology to electronics manufacturers -- told investors on Wednesday afternoon that it expects to save $30 million to $35 million a year with the move. Investors may appreciate the cost savings, but the economy's not going to cheer the lost jobs.
Guess? (GES) is a victim of fickle fashion trends. The branded apparel company missed Wall Street's quarterly expectations. Unfortunately, the company is also slashing its near-term guidance. Which way do you think the market's sending the shares on Thursday? Care to Guess?
Ending this roundup on the right foot -- or at least a jelly-filled one -- Krispy Kreme (KKD) came through with a better than expected quarterly profit. Revenue did come in a little light, but at least the doughnut maker's bottom line is sweetly glazed.
Motley Fool contributor Rick Munarriz does not own shares in any of the stocks in this article. The Motley Fool owns shares of Guess. Motley Fool newsletter services have recommended buying shares of Guess. Motley Fool newsletter services have recommended writing covered calls on Guess.