The stock market doesn't look like it's going to calm down anytime soon, and if anything, it seems as though things could get even more volatile rather than less. After a failed attempt to rally on Tuesday, markets are seemingly having a better time of it in premarket trading on Wednesday morning. As of 7 a.m. ET, futures on the Dow Jones Industrial Average (^DJI 0.69%) were up 471 points to 33,073. S&P 500 (^GSPC 1.20%) futures gained 66 points to 4,235, while Nasdaq Composite (^IXIC 1.59%) futures picked up 261 points to 13,528.
A couple of big stock movers saw their share prices rise sharply on Wednesday morning in premarket trading. MongoDB (MDB 7.69%) reported strong financial results after the bell on Tuesday afternoon, while XPO Logistics (XPO 4.08%) announced a key strategic move that will give investors some added flexibility in deciding which part of the business they want to own. You can see the details below.
MongoDB finishes its fiscal year strong
Shares of MongoDB were up almost 12% in premarket trading on Wednesday. The cloud database specialist finished an exceptionally strong year and sees even better times ahead.
MongoDB's fiscal fourth-quarter financial results were impressive. Sales finished 56% higher at $266.5 million on a 58% rise in subscription revenue. Adjusted net losses narrowed to $0.09 per share, down from $0.33 per share a year ago. MongoDB's fiscal 2022 also showed success for the company, as full-year sales climbed 48% year over year to $874 million.
Moreover, MongoDB expects to keep up its momentum in fiscal 2023. Full-year guidance pegs revenue at between $1.151 billion and $1.181 billion, which would represent a growth rate of around 31% to 35%. That's a fairly considerable slowdown, but apparently investors saw that as inevitable and weren't too disappointed with it. Similarly, MongoDB sees adjusted losses of $0.29 to $0.51 per share for fiscal 2023, continuing to narrow from 2022's $0.59-per-share annual loss.
Between new product releases, partnerships with major cloud infrastructure providers, and a host of new employees of its own, MongoDB is executing well. Even with the gains, the cloud stock is well off its highs, but bullish investors have high hopes that MongoDB could return to its former glory in the not-too-distant future.
Image source: Getty Images.
XPO plans a break
Elsewhere, shares of XPO Logistics were up more than 13%. The transportation company announced plans to break itself into two pieces, and investors were excited about the potential to unlock shareholder value from the move.
XPO's plan includes several elements to simplify its business going forward. The company will separate out its North American less-than-truckload (LTL) shipping business from its brokered transportation services segment, which has more of a technological focus. The brokered transportation business would get spun off in a new company, with the existing XPO shares becoming a pure play on domestic LTL transportation. XPO would also sell off its European business or list it in a public offering on a European stock exchange, and it would likely sell off its intermodal operations in North America.
This won't be the first such strategic move XPO has made. Last year, the company spun off its contract logistics, warehousing, and distribution business into GXO Logistics. XPO CEO Brad Jacobs believes the brokered transportation spinoff could boost total value for investors as well.
Investors have applauded moves from many companies to consolidate, reorganize, and otherwise take strategic action to make their businesses more efficient. XPO hopes that its latest move will get it even closer to an optimal mix of synergy and opportunity looking forward.
