A banner for Snowflake will be displayed on its IPO day on the New York Stock Exchange on September 16, 2020. It was the largest software IPO in history and one of eight CNBC 2020 Disruptor 50 companies to go public. More disruptor deals are coming soon.
Brendan McDermid | Reuters
Check out the companies that are making headlines in mid-day trading.
Walmart – The big box retailer’s shares rose about 2.5% after Walmart reported first-quarter gains that were above Wall Street estimates. Walmart reported adjusted earnings per share of $ 1.69 versus $ 1.21 per refinitive. The company saw strong grocery sales and e-commerce growth and increased its outlook for the year.
Snowflake – Snowflake rose more than 6% after a bullish call from Rosenblatt Securities. The company upgraded the data storage company to a buy rating ahead of Snowflake’s quarterly report on May 26th. “Snowflake … is uniquely positioned as a leading independent cloud data platform provider that should continue to grow rapidly as organizations shift more IT workloads onto the enterprise.” Cloud, “said the company.
Fisker – Fisker shares rose nearly 10% in midday trading after the electric vehicle company announced an agreement to supply up to 700 cars to Onto, a UK-based EV subscription service. Fisker equity came under pressure in extended trading Monday night after reporting a higher than expected loss in the first quarter.
MGM Resorts – Casino stock rose more than 4% after JPMorgan upgraded the stock from neutral to overweight. The firm said in a notice to clients that foot traffic in Las Vegas will increase and the recovery should continue later in the year as restrictions continue to be lifted.
Palo Alto Networks – The cybersecurity company’s stocks rose more than 2% after Raymond James upgraded the stock to an outperform rating. The company said that while the stock had “significantly underperformed” this year, the company “may enter the period of healthy growth and incremental profitability that are a hallmark of stock outperformance in this area.” Raymond James also set a price target of $ 400, which is 19% above where stocks closed on Monday.
Twilio – Twilio rose 3% after it was announced that it would acquire the Zipwhip business texting platform for $ 850 million in a mix of cash and stock. Stifel analyst J. Parker Lane said the deal will use Zipwhip to enable landlines and toll-free numbers.
Baidu – Baidu’s shares rose more than 1% in midday trading after posting better than expected results. Baidu posted sales of 28.13 billion yuan ($ 4.3 billion) in the first quarter, up 25% over the same period last year.
Altice USA – The cable TV company’s shares fell about 1% after Bank of America downgraded the stock from “neutral” to “below average” on Tuesday. Bank of America said it saw stronger opportunities elsewhere in its coverage.
Home Depot – Home Depot stocks were down nearly 1% in midday trading, despite beating the income statement for quarterly results. The hardware store retailer earned $ 3.86 per share on sales of $ 37.5 billion. According to Refinitiv, analysts expect earnings of $ 3.08 per share on sales of $ 34.96 billion. Sales in the same store also exceeded estimates. However, Home Depot did not provide guidance.
Hostess Brands – The food company’s share price rose 1.6% after Stephens reiterated its shares as overweight. Stephens said it should benefit from reopening the economy.
Macy’s – The store’s shares rose 0.1% after a surprise gain in the first quarter. The company reported adjusted earnings per share of 39 cents versus an expected loss of 41 cents per refinitive. Macy’s has also raised its full-year forecast, stating that consumers are hitting stores and going online to purchase new outfits for weddings, travel, and other special occasions.
– with reports from CNBC’s Yun Li, Pippa Stevens, Tom Franck, Hannah Miao and Jesse Pound.
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