Roblox surges, Palantir reverses up, UWM Holdings falls

Julie Hyman, Brian Sozzi, and Myles Udland discuss some of Tuesday’s market movers. Palantir recovers earlier losses, UWM extends losses and Roblox continues to build momentum.

Video transcript

MYLES UDLAND: Hi. Welcome back to "Yahoo Finance Live" on this Tuesday morning. Let's take a look at the markets here. And we are continuing to see the markets trade in tandem and trade to the downside. All three majors now off a uniform 1.7%. And it does appear, guys, that as Loretta Mester, Cleveland Fed President, was speaking with Brian Cheung on our air, the markets started to lose some steam. Julie, earlier today, we saw futures down when we came on the air. Then we saw a little bit of a bid-- quite a bit of a bid-- in a number of those names that had been under pressure. But now once again, it does appear that the selling has indeed resumed here as we get through the trading session.

JULIE HYMAN: Yeah. And from where I sit, it looks like the selling is pretty widespread, broad-based, in different categories. Whereas earlier, we were talking about the tech was taking the worst of it, and we were seeing the NASDAQ down the most, now, as you can see, all three major averages are down a lot. But you've got stocks like Apple that are down by more than 2.5%, looking at our most actives list. Tesla also on that list, as are some of the CHIPs. But then you also have Ford Motor Company down 2% and American Airlines down 4.7%, Bank of America down 1%. So that implies that we are seeing it not just concentrated in what's going on in big tech anymore, but really more across the board here.

So it's an interesting phenomenon. We'll see if we get another zag after the zigzag that we've already gotten in today's session and see if it becomes more confined. But for right now-- and by the way, we should mention we got the VIX up as well at the highs in session.

MYLES UDLAND: Yeah. And speaking of those zags, really, let's take a look at one name that we've discussed today and really caught our eye this morning. That's Palantir. The stock was up 10% this morning after the company came out with its latest quarterly results. It was a beat, as most results have been over the last earnings period. The stock was down double digits. Now the stock was up about 6%. We see it's now up about 3%. This is a name that is in a number of those ARK funds. Palantir is also a name that really became a meme stock-- one of the original diamond hand stocks, I guess we could say-- back in January and February.

It didn't have the short interest thesis around it, but it's been a Wall Street Bets favorite for a long time. But Palantir having come back down to basically start-- looking at the stock here at $19-- basically start flirting with-- it had that initial pop, but it came public, I think, at $9 or $10 per share-- basically got to this level before that wintertime move into the $40's. So Julie, a little bit of air coming out of that story since then. But to see a stock have this magnitude of an intraday move on an earnings report that seemed, to some extent, somewhat benign, but is, I guess, a thesis changer here, I think, speaks to a little bit of the chaos underneath the surface in the market today.

JULIE HYMAN: Yes. I think that that's a good way to put it, Myles. Because if you looked at the numbers here-- and by the way, the high for that stock was $39 back in January, so it didn't quite creep into the $40's but definitely was a high flyer.

So earlier, we were talking about a net loss that seemed wider than estimates. The company is spending more in compensation, so that seemed to hit the stock. But on the flip side, revenue was up 49% and beat estimates, and in particular, governmental revenues. We know that Palantir is very reliant on government contracts. Governmental revenue up to 83%. Commercial revenue, though, no slouch either. It was up 72%.

So there definitely was some good to look at in the report. I don't know that anything changed perception-wise between this morning and now. Again, it might just be some of those underlying technical weirdnesses that seem to be at play in the market today.

MYLES UDLAND: And no lack of those, as we've seen in the market over the last several months. So we'll see where that ball rolls as we get through the session. Sozzi, a name that you have your eye on that we talked about yesterday a little bit-- that's UWM, United Wholesale Mortgage. And we've seen that stock under a lot of pressure. We've seen Rocket under a lot of pressure. The mortgage trade has been a bit of a puzzling one against the backdrop of such a strong housing market. What's the story there? And I know tomorrow, we're hoping to get some clarity from [INAUDIBLE] UWM.

BRIAN SOZZI: Yeah, looking forward to catching up with Matt. So the UWM earnings call is ongoing. Haven't seen any large headlines or market-moving things coming out of that conference call. But the only thing that matters on this earnings release from UWM is this. We talked a little bit about it yesterday. Their total gain margin on their mortgages or what they sell to people-- that came in at 2.19% in the first quarter. That's down from 3.05% in the fourth quarter. So UWM also seeing some margin pressure, just like Rocket called out last week.

And the number two, second most important thing in this entire earnings release from UWM-- mortgage origination volume down 10.4% quarter over quarter. And that's how Rocket and UWM is going to be assessed by investors here quarter over quarter just given how far both those stocks and companies have come since they debuted last year. I do want to note quickly too, Myles and Julie, on the selloff we're seeing here-- very important what Cleveland Fed President Loretta Mester told us here moments ago. One, she's disappointed in the jobs report. It certainly came below estimates. It's always jarring to hear a Fed president voice disappointment in the jobs report. Also too, valuations-- my interpretation of her comments to Brian Cheung on valuations were valuations right now are, in fact, too high.

MYLES UDLAND: Well, we'll see. Brian Cheung-- second time now in a couple of weeks that he's brought the market down with comments that he has gotten Fed officials to say. So next time Brian Cheung speaks, everybody, keep your cell buttons close at hand. Julie, let's talk about, very quickly, a name that was out with earnings last night. And this is now moving squarely into the Julie Hyman trade bucket. That, of course, is Roblox.

JULIE HYMAN: Yes. As viewers of the show will know, one of my children's favorite pastimes, if not the favorite pastime. And they're not alone. We saw engagement on Roblox really up, and the first-quarter bookings were at $652 million. The loss was wider than estimated, but investors seem to be shrugging that off today. But if you think about the engagement, the hours that people put into the game in the first quarter-- 9.7 billion hours was the time that people spent on this thing. 42.1 million daily active users, which was an increase of 79%, Myles.

MYLES UDLAND: Is 9.7 billion a lot? I will have to go and check the math on my own to figure that one out in the break.