Why Confluent Inc. (CFLT) Surged On Wednesday

We recently published a list of These 10 Stocks Led Rally on Wednesday. In this article, we are going to take a look at where Confluent Inc. (NASDAQ:CFLT) stands against other stocks that led rally on Wednesday.

Ten companies led the charge on Wednesday, bucking a mostly pessimistic broader market, on the back of better outlook, positive earnings performance, and news of government support.

Wall Street’s main indices finished mix, with the Dow Jones and S&P 500 declining 0.50 percent and 0.27 percent, respectively. Nasdaq was the sole gainer, albeit inching up only 0.03 percent during the day.

In this article, we will explore the reasons behind the 10 firms’ strong performance. To come up with Wednesday’s top gainers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

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Confluent Inc. (NASDAQ:CFLT)

Shares of Confluent rallied by 25.08 percent on Wednesday to end at $37.65 each as investors bought up positions following the company’s optimistic outlook and improved earnings performance in 2024.

In a statement, CFLT said it expects subscription revenues to pick up to $1.117 billion to $1.121 billion for full-year 2025 from the $922.1 million registered last year.

Meanwhile, subscription revenues were expected to settle between $253 million and $254 million for the first quarter of the year from the $250.6 million in the last quarter.

Last year, CFLT narrowed its net loss by 21 percent to $345 million from $442 million, as well as by 6 percent for the fourth quarter to $88 million from $94 million year-on-year.

Revenues last year likewise increased by 24 percent to $963 million from $776 million, as well as by 22 percent to $261 million from $213 million for the fourth quarter of 2024.

Overall, CFLT ranks 2nd on our list of stocks that led rally on Wednesday. While we acknowledge the potential of CFLT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as CFLT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article is originally published at Insider Monkey.