Zuora, CrowdStrike, Broadcom, Robinhood - 5 Things You Must Know Thursday

Stock futures are lower following the market's best session since July; Zuora sinks on soft revenue guidance; Robinhood faces an SEC fraud probe.

Here are five things you must know for Thursday, Sept. 3:

1. -- Stock Futures Point to Lower Wall Street Start

Stock futures suggested Wall Street would open lower Thursday following the market's best session since July.

Contracts linked to the Dow Jones Industrial Average fell 50 points, S&P 500 futures were down 16 points and Nasdaq futures declined 134 points.

The Dow surged more than 450 points, or 1.6%, to 29,100 Wednesday as Wall Street recorded its best day in nearly two months.

The S&P 500 rose 1.5% Wednesday for its best day since July 6, and the Nasdaq jumped 0.98%. Both indexes closed at record highs.

The rally has been driven by infusions of credit from the Federal Reserve and hopes that the mad dash by drug companies to find a vaccine to end the coronavirus pandemic soon will prove fruitful.

The Centers for Disease Control and Prevention has told U.S. states to prepare for a Covid-19 vaccine to be ready by Nov. 1, an aggressive timeline that comes just days before President Donald Trump stands for re-election.

Stocks powered higher Wednesday despite a report that showed the U.S. private sector hired fewer workers in August than expected.

“Bullish stock market sentiment seems to be nearing a tentative peak as the labor market recovery stalls,” said Edward Moya of Oanda in a report.

2. -- Thursday's Highlights: Jobless Claims and Broadcom Earnings

The economic calendar in the U.S. Thursday includes weekly Jobless Claims at 8:30 a.m. ET, Goods and Services Trade for July at 8:30 a.m. and the ISM Services Index for August at 10 a.m.

Earnings reports are expected Thursday from Campbell Soup  (CPB) - Get Report, DocuSign  (DOCU) - Get Report and Broadcom  (AVGO) - Get Report.

Broadcom is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stock? Learn more now.

3. -- Zuora Sinks on Soft Revenue Guidance

Zuora  (ZUO) - Get Report sank 22.57% to $12.52 in premarket trading Thursday after the cloud software company posted second-quarter results that beat Wall Street expectations but issued a soft third-quarter revenue outlook.

Zuora said it expects third-quarter revenue of $73 million to $75 million, lower than analysts' forecasts of $75.5 million. The company expects an adjusted loss 4 cents to 5 cents a share vs. analysts' expectations of 5 cents.

For the second quarter, Zuora broke even on a per-share basis and posted revenue of $75 million. Analysts had been calling for a loss of 7 cents a share on revenue of $73.5 million.

“We reported solid results in the second quarter as we continue to help our customers thrive by providing them with the agility, insight and automation needed to navigate an uncertain economic environment,” said Zuora CEO Tien Tzuo. “The demand for subscription business models remains strong and we continue to build the foundation for Zuora to lead the market for years to come.”

Subscription revenue in the second quarter rose 15% to $58.3 million.

4. -- CrowdStrike Slides Despite Earnings Beat

CrowdStrike  (CRWD) - Get Report tumbled 9.9% to $128 in premarket trading despite the cloud-based cybersecurity company reporting second-quarter earnings and third-quarter guidance ahead of analysts'  expectations.

CrowdStrike posted adjusted earnings in the quarter of 3 cents a share, compared with a year-earlier loss of 18 cents and analysts' calls for a loss of 1 cent. Revenue rose to $199 million from $108.1 million a year earlier and beat expectations of $188.5 million.

"A favorable competitive environment and strong secular tailwinds are fueling our growth," said CEO George Kurtz. "Organizations are shedding outdated systems and accelerating their move to modern cloud-native technologies to meet the demands of today's threat landscape."

For its fiscal third quarter, CrowdStrike expects revenue between $210.6 million and $215 million, with an adjusted loss of 1 cent a share to break even. 

The company also raised its outlook for fiscal 2021.

Shares of CrowdStrike have risen more than 20% over the past five sessions, and the stock has gained nearly 190% so far this year.

5. -- Robinhood Faces SEC Fraud Probe

The popular trading app Robinhood is facing an investigation from the Securities and Exchange Commission over its relationships with high-speed trading firms.

The investigation is at an advanced stage and the company could have to pay a fine exceeding $10 million if it agrees to settle the SEC probe, The Wall Street Journal reported, citing a person familiar with the matter. The two sides haven't formally negotiated a settlement, and a deal is unlikely to be reached this month.

The investigation is focused on whether Robinhood properly disclosed to customers that its orders were being sold to high-speed trading firms, and whether that lack of disclosure amounts to civil fraud.

“We strive to maintain constructive relationships with our regulators and to cooperate fully with them,” a Robinhood spokesperson said in a statement. “We do not discuss or comment on our communications with our regulators.”

Robinhood's app offers commission-free stock trades, and has seen considerable growth in recent years, particularly during the Covid-19 pandemic.