Zoom founder Eric Yuan poses in front of the Nasdaq building as the video conferencing software company Zoom’s logo appears on the screen after the opening bell on April 18, 2019 in New York City.
Hit by Betancur | Getty Images
Check out the companies that are making headlines in midday trading.
Zoom – The video conferencing software company saw its shares fall more than 15% after its quarterly report showed slower revenue growth amid tough year-over-year comparisons as offices reopen and live events return. Zoom’s CFO told CNBC that there are headwinds in its mass markets, both individual consumers and small businesses. The decline in stocks even came as Zoom beat earnings estimates and the company raised its guidance for the full year.
Virgin Galactic – Virgin Galactic shares rose 8.3% after Jefferies began reporting the space stock with a buy rating. In Jefferies’ survey of people with net worth over $ 1 million, a third of respondents said they were interested in space travel, with 20% willing to spend 5% of their net worth on it.
Chico’s FAS – Chico’s shares fell nearly 17% despite the clothing retailer’s better-than-expected quarterly earnings. The company reported unexpected quarterly earnings of 21 cents per share, compared to Refinitiv’s consensus estimate of 8 cents per share. Revenue also exceeded Wall Street’s expectations.
Designer Brands – The shares of Designer Brands, the Designer Shoe Warehouse, fell more than 9% despite a profit decline. The retailer reported quarterly earnings of 56 cents per share, compared to a consensus estimate of 24 cents per share by Refinitiv. Sales also exceeded analyst forecasts.
NetEase – Chinese gaming giant NetEase rose 4.8% after reporting better-than-expected second-quarter earnings, with sales in line with forecasts. The stock fell on Monday as China’s National Press and Publications Bureau released a new rule limiting children’s online video play time to just three hours a week to protect their physical and mental health.
Textron – Textron’s shares rose 1.1% after Cowen upgraded the stock to outperform the market, citing strong demand for business jets and a compelling opportunity in electric aircraft. The company also raised its target price on the stock from $ 75 to $ 95 per share, a 32% increase from Textron’s closing price on Monday.
Occidental Petroleum – The oil exploration company’s shares rose 1.4% after Citi initiated coverage of the stock with a buy rating. The investment firm issued a notice to its clients that the stock had more upside potential than some of its energy counterparts.
Support.com – Support.com stocks were down 12.3% after rising 38% in the previous trading session fueled by retail investors coordinating on Reddit forums. The stock has high short interest, which could explain why retailers have partnered around the small-cap name.
– CNBC’s Tanaya Macheel, Yun Li and Jesse Pound contributed to the coverage
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