Stock Market Updates: Uber, Lyft, Reddit, AB InBev, Microsoft, and Arista Networks

Shares of Uber Technologies (UBER) are sinking while those of rival Lyft (LYFT) are jumping after the ride-hailing firms posted quarterly results; Reddit (RDDT) shares are soaring after the social media firm’s first results since going public showed record user traffic; shares of AB InBev (BUD) are rising as the brewing giant notches higher sales even as the U.S. boycott of Bud Light continues to weigh; Microsoft (MSFT) is investing $3.3 billion in a new data center focused on artificial intelligence (AI) in Wisconsin; and strong cloud demand from AI applications is lifting shares of Arista Networks (ANET). U.S. stock futures are little changed. Here’s what investors need to know today.

1. Uber Posts Surprise Loss as Legal Settlements, Equity Investments Weigh
Uber Technologies (UBER) shares are tumbling nearly 6% in premarket trading after the ridesharing company unexpectedly reported a loss, weighed down by legal settlements and a revaluation of its equity investments. Uber posted a $654 million loss in the three months through March, versus the $477.2 million profit expected by analysts surveyed by Visible Alpha. Revenue for the quarter of $10.1 billion was in line with estimates. First-quarter gross bookings, which includes ride hails and delivery orders, rose 20% from a year earlier to $37.7 billion, and the company projected that bookings this quarter will range from $38.75 billion to $40.25 billion. Meanwhile, rival Lyft’s (LYFT) cost-cutting drives led to a narrowing of its loss to $31.5 million from $187.6 million a year ago. Lyft shares are up more than 5% premarket.

2. Reddit Surges on Record User Traffic in First Results Since IPO
Reddit (RDDT) shares are soaring about 12% in premarket trading after the social media company reported record user traffic and rising revenue in its first quarterly earnings report since its initial public offering (IPO) in March. Reddit Chief Executive Officer (CEO) Steve Huffman said that the data licensing business is “still early in its monetization journey,” after the company had indicated in its IPO filing that licensing its data for AI training would represent a key source of opportunity. The company has already announced a licensing agreement with Alphabet’s (GOOGL) Google and reported it also “signed licensing agreements with various companies in the social listening space.”

3. AB InBev Rises as Revenue Beats Forecast Despite Bud Light Slump
American depositary receipts (ADRs) of Anheuser-Busch InBev (BUD) are rising nearly 5% in premarket trading after the Belgian brewer reported a higher-than-forecast 2.6% gain in revenue even as the year-long boycott of its Bud Light brand continued to weigh on volumes. The company, whose brands also include Corona and Stella Artois, posted an 11.1% drop in volumes sold of its own brands in North America largely due to sales declines of Bud Light, it said. The brand lost its top spot as the best-selling beer in America last year, and was hit after a boycott following its partnership with transgender influencer Dylan Mulvaney.

4. Microsoft to Invest $3.3B in AI Data Center in Wisconsin
Microsoft (MSFT) is investing $3.3 billion in a new data center focused on artificial intelligence in Wisconsin, the White House said Wednesday, ahead of President Biden’s visit there to announce the deal. The site will create 2,300 construction jobs and eventually as many as 2,000 data center jobs, and will be on the land left vacant by Apple (AAPL) iPhone assembler Foxconn’s “failed investment in Racine County,” the White House said. The Taiwanese firm Foxconn has largely abandoned a $10 billion investment in the site.

5. Arista Networks Jumps as Strong Demand for Cloud AI Networking Boosts Outlook
Shares of Arista Networks (ANET) are surging more than 6% in premarket trading after the cloud-networking giant issued a trifecta of upbeat news—an earnings beat, better-than-expected current-quarter outlook, and a big share buyback program amid strong cloud demand from artificial intelligence (AI) applications. Arista, whose clients include tech giants Microsoft (MSFT) and Meta Platforms (META), continues to benefit from insatiable demand for cloud AI networking solutions, such as Ethernet switches and routers, that connect cloud and data center infrastructure which powers the technology.