People walk past Ralph Lauren’s Polo store on Fifth Avenue in New York City.
Check out the companies that are making headlines in midday trading.
Square – Jack Dorsey’s payments firm saw its shares rise 10% after the company announced it would buy Australian fintech firm Afterpay in a $ 29 billion deal to further expand into the booming consumer credit market. The price tag marks a surcharge of around 30% on the last closing price of Afterpay. Square also reported earnings of 40 cents per share for the second quarter, up from a loss of 3 cents per share for the same period last year. The company’s gross profit increased 91% year over year, representing a record rate of growth for the quarter.
Payments Stocks – The stocks of payment tech firms that offer banks card issuer processing and network services are falling in response to news of Square’s purchase of Afterpay, who has to buy now and pay later. Global Payments stocks were down 11% despite reporting a profit of $ 2.04 for the second quarter, beating analysts’ expectations of $ 1.90. The FIS share fell 6.6% and the Fiserv share fell 4.6%.
Robinhood – The newly public stock trading app stocks rose 7% after making its Nasdaq debut last week. ARK Invest’s Cathie Wood bought approximately $ 65 million worth of Robinhood shares in three ARK funds on Friday, a huge show of confidence from the innovation investor.
Moderna, Pfizer, BioNTech – Pfizer shares rose 2.6% and shares of its partner BioNTech rose 6% after prices for its Covid-19 vaccines rose in Europe. However, Moderna shares, which also rose in Europe, lost 1.9%. The Food and Drug Administration is under pressure to fully approve both vaccines, which Pfizer and BioNTech could do within the next month.
Under Armor – The clothing company’s shares rose 3.2% after investment firm Baird named the stock a new choice. Under Armor is well positioned to beat expectations when it reports profits on Tuesday and has upside potential due to its underperformance against Nike, Baird said.
Ralph Lauren – The clothing retailer’s shares rose 3.9% after Goldman Sachs initiated coverage of the stock with a buy rating. The bank highlighted Ralph Lauren’s strength in digital direct selling to the consumer and said it was “optimistic” about the company’s turnaround.
First Solar – The solar power systems maker saw its shares rise 2.5% after Susquehanna Financial raised it from “neutral” to “positive”, citing positive management comments on demand and pricing for solar panels.
Capri Holdings – Capri Holdings’ shares rose 1.5% after MKM upgraded the stock to buy off hold. Parents Michael Kors and Versace announced their quarterly results on Friday and raised their annual sales forecast. “After a number of quarters with better than expected sales and profits (despite headwinds from wholesalers and Europe), we are increasingly convinced that the CPRI playbook works in a” show-me-story “of its implementation in acquisitions”, MKM said.
Tesla – Tesla stock rose 3% as Wall Street analysts continued to view the stock with optimism during earnings season and the Fed’s uncertainty. On Monday, Goldman Sachs added Tesla to companies with strong balance sheets that it recommends customers buy.
– CNBC’s Hannah Miao, Maggie Fitzgerald, Jesse Pound and Yun Li contributed to the coverage
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