Presented by Bito: The founders who took PubMatic public at a ~$4B peak valuation are building again — this time an AI layer that cut coding costs per task by 48% in testing, backed by $10M+ in institutional capital. See why the $4B team is at it again →

Clean quarters are getting paid this morning. A footwear brand is leading on a stronger-than-expected outlook, a cruise line is sailing higher on a double beat, and a used-car dealer and a burrito chain are both climbing on results that cleared the bar.

The punishment side is far harsher. A cybersecurity name and an enterprise software company are down roughly 20% or more on small misses, and a grocery chain is sinking after missing on every headline number.

The founders who took PubMatic public on NASDAQ, where it reached a peak valuation of roughly $4 billion, are building again.

Their new company, Bito, helps AI coding tools understand the code they’re working on and routes each task to the lowest-cost AI model suited for the job. In testing, it cut AI costs per task by 48%.

Bito has raised more than $10 million from institutional investors and tech leaders.

Crocs (CROX): +18%

The footwear brand is surging after a clean beat on the quarter and, more importantly, a current-quarter outlook that topped what Wall Street expected. Guidance is the tell here: a higher bar heading into the holiday quarter suggests management sees demand holding up.

Norwegian Cruise Line (NCLH): +12%

The cruise operator beat on both the top and bottom lines, and the stock is sailing higher on it. A clean print from a travel name is the latest sign that consumers are still willing to spend on big-ticket trips.

Carvana (CVNA): +8%

The used-car dealer beat on revenue and profit, but the bigger headline may be that the SEC closed a previously disclosed investigation without taking any enforcement action. Clearing a regulatory overhang on the same morning as a strong quarter hands the bulls two wins at once.

Chipotle Mexican Grill (CMG): +8%

The burrito chain is climbing after same-store sales grew faster than analysts expected. For a restaurant stock, comps are the scoreboard, and a beat there suggests traffic is holding up better than the Street had modeled.

Fortinet (FTNT): -26%

The cybersecurity company beat on the top and bottom lines, but gross margin came in just under what analysts expected, and the stock is getting crushed. A selloff this severe over a half-point margin miss shows how little room for error the market is allowing right now.

Sprouts Farmers Market (SFM): -24%

The grocery chain missed on earnings, revenue, and same-store sales, a clean sweep in the wrong direction. When every headline number trails estimates, there’s no silver lining for bulls to hold onto, and the stock is repricing fast.

ServiceNow (NOW): -19%

The enterprise software company’s adjusted profit missed by a penny, and its subscription revenue outlook landed right around consensus. Neither result was a disaster on its own, but a ~20% drop suggests investors were expecting a lot more than an in-line quarter.

The founders who took PubMatic public on NASDAQ, where it reached a peak valuation of roughly $4 billion, are building again.

Their new company, Bito, helps AI coding tools understand the code they’re working on and routes each task to the lowest-cost AI model suited for the job. In testing, it cut AI costs per task by 48%.

Bito has raised more than $10 million from institutional investors and tech leaders.

Reddit (RDDT)

Reddit reports third-quarter results after the close tonight, and the stock is limping in. The chatter centers on slower growth guidance and how much of the platform’s traffic still depends on Google search, and this morning’s search miss at Alphabet may only sharpen that debate.

The company has beaten revenue estimates in every quarter since going public, yet shares are down roughly 41% this year. Tonight could be the print that either rebuilds confidence in the growth story or confirms the slowdown traders seem to be bracing for.

✌️That’s it for today.