Midday Trading Update: Zoom Video Communications, Paramount Global, and Microsoft Make Headlines
In today’s midday trading update, several companies are making headlines with significant stock movements. Zoom Video Communications saw an increase of nearly 2% ahead of its third-quarter earnings release, with analysts expecting $1.08 per share in earnings and revenue of $1.12 billion. Paramount Global experienced a surge of nearly 7% following the completion of its acquisition of mixed-martial arts brand Bellator from Paramount by the Professional Fighters League.
Penn Entertainment, a gambling stock, jumped 7% after receiving an upgrade to buy from neutral by Bank of America. The firm cited the potential boost from ESPN Bet, the company’s new sportsbook. On the other hand, Spectrum Brands Holdings saw a 2% dip after being downgraded by Wells Fargo, attributing its decision to reduced confidence about the company’s fundamentals.
In the tech sector, Microsoft’s shares climbed 1.9% after announcing the addition of former OpenAI CEO Sam Altman and president and board chair Greg Brockman to head a new artificial intelligence research team. Analysts view these hirings as a positive catalyst for the company in the long term. Similarly, Nvidia’s shares rose by 1% after a reiterated strong buy rating from Raymond James in anticipation of Nvidia’s fiscal third-quarter report due late Tuesday.
On the aerospace front, Boeing’s stock jumped 4% following an upgrade to a buy rating from Deutsche Bank, citing accelerating aircraft deliveries that could lead to positive cash flow revisions. However, Chegg, the education technology company, saw a 5% drop after a downgrade to underweight by Morgan Stanley, citing unattractive risk/reward and weaker web traffic and download trends.
Krispy Kreme, the doughnut chain, saw a 2% decline after receiving a downgrade to neutral from overweight by JPMorgan, citing execution issues despite its enormous underlying appeal. Meanwhile, Iovance Biotherapeutics experienced a 9% increase after Goldman Sachs initiated coverage of the company with a buy rating and $12 price target, predicting the stock could more than double from Friday’s close due to its promising cancer therapies.
The construction machinery leader Caterpillar’s shares were down 1.3% after HSBC initiated coverage with a hold rating, attributing it to headwinds facing the U.S. machinery market. Additionally, United Rentals fell about 2% after a director disclosed selling 630 shares of the equipment rental company.
In the healthcare sector, Bristol-Myers Squibb shares dropped nearly 4% following a delay in gaining expanded approval for Abecma for earlier lines of triple-class exposed relapsed or refractory multiple myeloma. Energizer Holdings, the battery maker, also fell more than 2% after multiple downgrades, including UBS downgrading the stock to neutral from buy due to unattractive risk/reward and an above-average valuation.
This midday trading update showcases the diverse movements in various sectors, reflecting the dynamic nature of the market. — CNBC’s Alex Harring, Yun Li, Lisa Kailai Han, Sarah Min, and Michelle Fox contributed reporting.
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