Stocks Making Headlines in Midday Trading
Tesla – Despite a launch event for the Cybertruck, Tesla shares saw a slight dip.
The long-awaited delivery launch event in Texas for Tesla’s Cybertruck occurred on Thursday, leading to a drop of less than 1% in the company’s shares as Wall Street evaluated the impact.
Disney – Disney shares remained virtually unchanged after the company reinstated its dividend.
Disney reinstated its dividend at 30 cents per share while facing a renewed proxy battle with Nelson Peltz and Trian Fund Management. As a result, the entertainment giant’s shares saw minimal movement.
Alibaba – A downgrade by Morgan Stanley led to a 2% drop in Alibaba shares.
Morgan Stanley downgraded Alibaba to equal weight, forecasting a slower-than-expected turnaround in its cloud business as the reason behind the 2% dip in the China-based e-commerce company’s shares.
Ulta Beauty – The beauty stock surged nearly 11% following strong third-quarter results.
Ulta Beauty reported third-quarter results that surpassed analyst estimates, leading to an 11% rally. The company also lifted the low-end of its full-year outlook while experiencing a 6% year-over-year revenue jump.
Pfizer – Pfizer’s stock tumbled nearly 4% due to halting development of an experimental weight-loss pill.
Adverse side effects reported during a clinical study led Pfizer to halt the development of a twice-daily experimental weight-loss pill, causing a nearly 4% drop in the stock. However, the drugmaker plans to release trial data on its once-a-day version next year.
Elastic – The search engine company’s shares surged over 30% post strong quarterly results and an upgrade by Wells Fargo.
Wells Fargo upgraded Elastic’s shares to overweight, attributing the 30% surge to meaningful revenue expansion opportunities stemming from AI, thanks to strong quarterly results.
Samsara – Better-than-expected quarterly results and guidance led to a 16% increase in Samsara shares.
Samsara posted better-than-expected quarterly results and shared stronger-than-expected guidance, resulting in a 16% increase in the cloud company’s shares.
Paramount Global – Paramount and Apple’s reported talks about bundling streaming services at a discount led to an 8% surge in the media conglomerate’s stock.
The Wall Street Journal reported that Paramount and Apple initiated talks about bundling their streaming services at a discount, causing an 8% surge in the media conglomerate’s stock.
Marvell Technology – Despite topping Wall Street’s estimates, Marvell Technology saw a 4% slump in its shares due to weaker-than-expected guidance for the current quarter.
Marvell Technology posted third-quarter earnings surpassing Wall Street’s estimates but issued weaker-than-expected guidance for the current quarter, resulting in a 4% slump in its shares.
Coinbase – A report from CoinDesk led to a nearly 5% increase in Coinbase shares after Ark Invest sold its shares.
Following a report from CoinDesk that Cathie Wood’s Ark Invest sold Coinbase shares for $15 million, Coinbase shares saw a nearly 5% jump. This occurred after the company closed out its second-best month of gains since its Nasdaq debut in 2021.
Dell – Despite mixed third-quarter results, Dell’s shares pulled back by 5.2%.
Adjusted earnings of $1.88 per share surpassed estimates, but revenue of $22.25 billion fell short, resulting in a 5.2% pullback of Dell’s shares.
BioNTech – A downgrade by JPMorgan led to a 2.7% fall in BioNTech’s stock.
JPMorgan downgraded BioNTech to underweight from neutral, attributing the 2.7% fall in the vaccine maker’s stock to weakening demand for Covid vaccines and limited near-term catalysts for investors.
Norfolk Southern – Norfolk Southern’s shares rose nearly 3% after being upgraded to buy from neutral by Bank of America.
Bank of America upgraded Norfolk Southern’s stock to buy from neutral, citing improved shipping car volumes after a challenging year and derailment in Ohio in February.
Altimmune – Positive trial results for an experimental obesity drug led to a 37% surge in Altimmune’s stock.
Altimmune’s stock surged over 37% after the company reported positive trial results for its experimental obesity drug, leading to a strong market response.
Ambarella – Ambarella’s shares slipped 1% despite posting third-quarter results that topped estimates.
Ambarella reported third-quarter results surpassing estimates, but its shares slipped 1% after posting third-quarter gross margins of 62.6%, down from 63.5% in the year-ago period.
CSG Systems – Jefferies initiated a buy rating for CSG Systems, leading to a 5.6% increase in its shares.
Jefferies initiated a buy rating for CSG Systems, attributing the 5.6% surge in shares to the company’s growth outside of the communication services sector.
Conclusively, Midday Trading saw a mix of ups and downs for various companies, as they navigated through quarterly results, upgrades, downgrades, and clinical trial outcomes, ultimately influencing the market sentiment.
