Cryptocurrency and Cars: Pre-market News Roundup
Crypto-Related Assets Surge
Crypto-related assets surged after Bitcoin topped $40,000 for the first time this year. Coinbase, a leading cryptocurrency exchange, jumped 7% in pre-market trading, while other companies in the sector also saw gains. MicroStrategy, a business intelligence firm that has invested heavily in Bitcoin, gained 7%, and Marathon Digital, a Bitcoin mining company, climbed 13%.
Uber Enters S&P 500
Uber Technologies, the popular ride-hailing company, saw its stock rise 4% after it was announced that it will enter the S&P 500. Along with Uber, Jabil and Builders FirstSource will also join the prestigious index. The three companies will replace Sealed Air, Alaska Air Group, and SolarEdge Technologies. Shares of Jabil and Builders FirstSource were each higher by more than 2%.
General Motors Gets Upgrade
Shares of General Motors, the American automotive manufacturer, added 1.3% after an upgrade from Mizuho Securities. The upgrade stated that GM has bottomed out and is poised for growth, particularly after the recent labor settlement with the United Auto Workers.
Spotify Announces Layoffs
Music streaming giant Spotify rose more than 1% before the bell after announcing that it would be laying off 17% of its workforce. The company is looking to trim costs amid slower growth. The cuts total about 1,500 jobs, according to a CNBC source familiar with the matter. Despite the layoffs, Spotify was still up 129% for the year as of Friday’s close.
Alaska Air Acquires Hawaiian Airlines
Alaska Air Group, the Seattle-based carrier, slid 12% after agreeing to acquire Hawaiian Airlines for $1.9 billion. Alaska Air will pay $18 a share and take on $900 million in debt as part of the deal. Hawaiian Holdings, Hawaiian Air’s parent, saw its stock soar 182%. Alaska Air is also coming out of the S&P 500 index.
Lululemon Athletica Downgraded
Shares of Lululemon Athletica, the popular athleisure company, slipped 2.1% after Wells Fargo downgraded the stock to equal weight from overweight. The bank cited the company’s positive catalysts having already played out and forecasted more muted growth in 2024.
Carvana Upgraded
Despite the mixed news in the pre-market, shares of online car retailer Carvana jumped more than 5% after JPMorgan upgraded the stock to neutral from underweight. The Wall Street firm praised Carvana for bolstering productivity and making progress in cutting costs.
As the market opens, investors will be watching to see how these pre-market movements translate into action throughout the trading day.
