Chapter 1: What is the main topic discussed in this episode?
Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning. It's always good to be with you. Today is Wednesday, the first of April. I'm Julie Morgan. Shares of RH are down 17% in pre-market action.
Fourth quarter results and expectations for the first quarter and full year disappointed investors, despite indications that the company is navigating a dire housing market. RH stated that fourth quarter and 2025 net revenues were negatively impacted by approximately $30 million dollars
due to higher-than-anticipated backorder and special order balances as a result of tariff-related resourcing, as well as $10 million due to adverse weather at the end of the quarter. For the first quarter, revenue is seen declining by 2 to 4 percent, translating to a range of between $781 and $797 million, which is below the $876 million estimates.
For fiscal year 26, revenue is expected to increase by 4 to 8 percent, representing a range of between $3.58 and $3.71 billion, below the $3.77 billion consensus estimate. Oracle closed 6% higher on Tuesday, the same day the company started laying off employees. According to Business Insider, Oracle is trying to drive down costs to support its AI infrastructure build-out.
Tech Layoff Tracker posted on X that the layoffs will affect 18% or 30,000 of Oracle's global workforce. Seeking Alpha reached out to Oracle, but a spokesperson declined to comment on the matter.
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Chapter 2: Why did RH shares drop significantly in pre-market trading?
Oracle sent out an email on Tuesday to its affected employees. It said in part, we are sharing some difficult news regarding your position. The email went on to say that after careful consideration of Oracle's current business needs, we have made the decision to eliminate your role as part of a broader organizational change. As a result, today is your last working day.
Chapter 3: What factors contributed to RH's disappointing Q4 results?
Seeking Alpha analyst Justin Pirowit said the layoffs are difficult but necessary. He said via email that while the headlines are understandably concerning, this looks to me like an efficiency-driven shift rather than a signal of weakening fundamentals. Baidu faced disruption in China's Wuhan city on Tuesday after several Apollo Go robo-taxis stopped in the middle of a ride.
Local police said they received multiple reports of vehicles stuck in traffic and unable to move. Authorities worked with Baidu staff to respond to the situation, which was preliminarily attributed to a system fault. Passengers were able to exit safely and no injuries were reported. The exact number of affected vehicles remains unclear. Apollo Go is China's largest robo-taxi operator.
The disruption echoes a similar episode last year involving Alphabet's Waymo robo-taxis in San Francisco, which stalled during a power outage and left riders stranded. Now for a look at a few other articles that are trending. This first article is in line with Tuesday's top story here on Wall Street Breakfast.
UBS says gold's dismal march was likely just a pause and is upholding its bullish view to 6,200. Constellation Energy tops S&P 500 losers after no news on power deals for data centers. And Nike slides 9% after issuing soft guidance during its earnings call. More on Nike in just a minute. I have a few items on our catalyst to watch for the day.
Apple will mark its 50th anniversary since its founding by Steve Jobs, Steve Wozniak, and Ronald Wayne. The company is celebrating the milestone with global events and a message reflecting on its history, innovation, and impact. The highly anticipated Aptiv spinoff of its electrical distribution systems business will become effective.
Shareholders are slated to receive one Versagent share for every three Aptiv shares they owned as of March 17th. And Universal Pictures will debut the Super Mario Galaxy movie in the U.S. The highly anticipated film was produced by Illumination and Nintendo.
On Wall Street, stock index futures are higher before the bell, as Wall Street looks to continue its upbeat mood amid hopes of a resolution to the Iran conflict. President Trump is said to deliver a primetime address tonight at 9 to provide an update on the war in Iran. The announcement comes after Trump said he expects the conflict to wind down in the coming weeks. adding that the U.S.
has largely achieved its military objectives. He also indicated that reopening the Strait of Hormuz would be left to other nations. Dow S&P and Nasdaq futures are in the green in the range of 0.6% to 0.8%. Crude oil is down 1% at $100. Bitcoin is up 0.2% at $68,000. Gold is up 1% at $47.21%. The FTSE 100 is up 1.7%, and the DAX is up 1.9%.
Nike is on our list of the biggest movers of the day pre-market. NKE is down 9% after issuing weaker-than-expected guidance despite delivering a fiscal Q3 beat. Nike expects fiscal Q4 sales to decline 2-4%, missing expectations for growth, with a sharp 20% drop projected in Greater China.
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