Goldman Sachs & 23andMe shares higher, Corsair Gaming trims revenue guidance

Yahoo Finance’s Emily McCormick reports on the day's trending tickers.

Video Transcript

- Let's toss it over to Yahoo Finance's Emily McCormick, who has her eye on some of the stocks that are trending today. And, Emily, I made mention of the big banks. Goldman Sachs really a standout today. Blowing past Wall Street expectations with its report.

EMILY MCCORMICK: That's right, Alexis. And we are seeing shares of Goldman Sachs up more than 3% this afternoon. It's the best performer in the DOW following that better-than-expected third quarter earnings report. And as we've seen from its peers, these other big banks that had reported earlier on this week, investment banking and equity sales and trading were really the standout business units in this quarter. And we saw overall net revenue up 26% over last year to reach $13.6 billion. That was a full $2 billion ahead of Wall Street's estimates. And that was in turn led by an 83% surge in investment banking revenues.

Now Goldman Sachs CFO Stephen Share also said during this morning's earnings call that the investment banking backlog is strong, so that is a good sign for deal activity going forward. And then with trading revenues, again, saw equities and trading up about 51% to reach $3.1 billion in the quarter. And then taking a look at the bottom line results here for Goldman Sachs. Earnings also far exceeding estimates. Those at $14.93 a share so that jump in revenues did trickle down all the way to a bottom line at beat for this bank as well.

So, guys, another strong report here rounding out the big bank earnings from Goldman Sachs.

- Emily, you're also taking a looking at Corsair Gaming today. A sector that's obviously highly susceptible to these supply chain issues. The stock is way down. Today the company posted weaker than expected preliminary sales results. Baird downgraded the stock based on that from neutral to outperform.

- That's right. And if we take a look here, when we think about this company in particular, again, that stock down more than 8% this afternoon. And that's coming after a not so upbeat announcement on its quarterly results, that preliminary outlook for its third quarter sales really disappointing against Wall Street's expectations. Corsair Gaming saying that it expects third quarter net revenue will total about $391 million, whereas the estimate among consensus analysts was for about $440 million.

Now Corsair also issued a disappointing outlook for full year sales. The company now sees as much as $1.925 billion, also short of estimates for $1.965 billion. And as you were mentioning, this disappointing pre announcement did prompt a downgrade from Baird analyst Colin Sebastian. He slashed his recommendation on the stock to neutral from outperform and he said specifically that uncertainty around the global supply chain and semiconductor shortages could continue to exert pressure on Corsair. And of course, we are seeing that stock under pressure today, off again just over 8%, guys.

- All right and I'm taking a look at our trending tickers page on the Yahoo Finance site. And 23andMe, second most top trending ticker, and it's up about 17%. What's pushing that stock higher today?

EMILY MCCORMICK: Well, Alexis, 23andMe actually got a positive shout out on CNBC last night from IMG capital founder Eric Jackson. Now, he said that investors should consider this company a subscription business with a recurring revenue stream. And he even went as far as to call the stock quote "the next Roku" in his words. Now 23andMe had gone public via SPAC merger back in June. Since that date of the deal's closing on June 17, the stock has fallen by about 30%. So today's outsized move to the upside could be a case of the bar being set extremely low here for 23andMe, and investors really grabbing on to whatever good news they can. But again with today's about 17% rally, that does put the stock on track for its best day since June. And really seeing it hold on to gains even from the overnight and into today's session. Guys.

- All right. Emily McCormick, Thanks for the breakdown.

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