Pre-Market:Pre-Market
Pre-Market active stocks
Gainers
- Campbell Soup (NYSE:CPB) stock increased 1.5% after the company’s quarterly profit above estimates, thanks to higher prices for its packed meals and snacks, which helped offset a slowdown in demand from cost-conscious consumers.
- Nvidia (NASDAQ:NVDA) stock jumped 1% after the chipmaker announced it was collaborating with the US government to guarantee that new chips for the Chinese market comply with export restrictions.
- ExxonMobil (NYSE:XOM) stock increased 0.4% after the oil company announced plans to accelerate share buybacks following the completion of its $60 billion acquisition of shale producer Pioneer Natural Resources (NYSE:PXD).
Losers
- The stock of InMode (NASDAQ: INMD) plummeted 13% after the Israeli med tech firm issued a profit warning, predicting a slowdown in platform sales, primarily in North America.
- Box (NYSE:BOX) stock dropped 12% after the cloud storage provider issued a disappointing sales outlook despite reporting strong quarterly performance.
- Plug Power (NASDAQ:PLUG) stock slumped 7.8% after Morgan Stanley reduced the hydrogen fuel cell company’s investment stance to ‘underweight’ from ‘equal weight,’ citing liquidity issues.
- Even though the data storage company reported better-than-expected third-quarter results and positive forecasts, MongoDB (NASDAQ:MDB) stock slumped 5.2% on slowing client growth.
Stocks in focus
Asana (ASAN)
Asana (ASAN) Class A shares tumbled more than 14% in pre-market trading after executives at the workplace management software business mentioned persistent macroeconomic headwinds, longer deal cycles, customer budget constraints, and an impact on dollar-based net retention rates. The remarks come after the company reported a top and bottom line beat in the third quarter of 2024 and boosted its full-year revenue guidance. On the earnings conference call, ASAN CEO Dustin Moskovitz stated that macroeconomic headwinds had particularly hurt sales in the company’s renewal base.
Campbell Soup (CPB)
Campbell Soup (CPB) stock jumped about 2% ahead of the opening bell as the canned soup company beat quarterly profit projections and maintained its full-year guidance despite seeing revenue dip due to lower demand. The corporation also faced a difficult comparison in organic net sales growth from the previous year. “We’re off to a good start in our crucial holiday season, and we anticipate to develop momentum for the rest of the fiscal year… “As a result, we are confident in reaffirming our full-year guidance,” stated CPB CEO Mark Clouse.
GameStop (NYSE:GME)
GameStop (NYSE:GME) shares will be closely watched when the company reports its third-quarter earnings after the closing bell. The widely shorted stock went up roughly 3% ahead of the market open, and it has recently gained traction alongside other meme stocks, as evidenced by an increase in options volume. Wall Street expects the videogame retailer to announce an 8-cent loss per share on $1.18 billion in revenue. Investors will be watching the company’s sales and margin figures to judge its overall health and growth prospects as the holiday season approaches.
Toast (TOST) Class A
Toast (TOST) Class A shares fell more than 2.5% in pre-market trade after Bank of America downgraded the company to Neutral from Buy. The brokerage expects slower top-line growth and increased competition for the Boston, Massachusetts-based company, which provides restaurant software services such as a point-of-sale platform. Toast (TOST) raised over $33 billion in its New York Stock Exchange debut in September 2021, at a time when demand for cloud kitchens was strong due to the COVID-19 epidemic.
Downgrades
PayPal drops following the downgrade by BofA.
PayPal (NASDAQ:PYPL) shares dipped roughly 1% in pre-market trading today after BofA Securities downgraded the business to Neutral from Buy and reduced its price objective from $77.00 to $66.00.
The downgrade comes after the stock rose in response to PayPal’s small third-quarter earnings beat and new CEO Alex Chriss’ new messaging on profitable growth and a focus on execution. Analysts predict that 2024 will be a transitional year for PayPal, with new leadership in both the CEO and CFO positions working to build trust with investors and drive consistent improvements in key performance metrics, particularly total payment volume growth, which lagged under previous management.
Despite PayPal’s strong brand, robust balance sheet, and size, analysts at BofA expect the stock to remain range-bound in the short term.
Morgan Stanley downgrading causes a reduction in Plug Power.
Plug Power (NASDAQ:PLUG) shares fell more than 5% in pre-market trading today after Morgan Stanley downgraded the firm to Underweight from Equalweight and reduced its price objective to $3.00 from $3.50.
Analysts noted that Plug Power’s stock has dropped dramatically this year, with a 63% year-to-date drop and a 47% reduction in the last three months alone. This fall is significantly more than that of both their clean tech sector coverage and the S&P 500. Even after the underperformance in 2023, analysts voiced worry about significant risks connected with Plug Power’s business model, especially in light of operational issues encountered when commercializing its early green hydrogen facilities.
Following the release of the company’s third-quarter earnings yesterday, HSBC downgraded Asana (NYSE:ASAN) to Reduce from Hold with a price objective of $18.00.
While Q3 EPS and revenues above expectations, shares fell more than 14% pre-market today due to billings problems.
JPMorgan downgraded Range Resources (NYSE:RRC) from Neutral to Underweight and reduced its price objective to $32.00 from $33.00.
Upgrades and Downgrades
In Wednesday premarket trading, Toast (NYSE:TOST) fell 2.6% and PayPal Holdings (NASDAQ:PYPL) fell 0.9% after Bank of America downgraded payment stocks to Neutral from Buy in a report addressing the year-ahead outlook for payment firms.
Analyst Jason Kupferberg predicts weaker top-line growth and increased competition for Toast (TOST). Meanwhile, 2024 will most likely be a transition year for PayPal (PYPL) as its new CEO and CFO “seek to earn Street credibility while driving sustained improvements in top-line metrics, especially transaction profit growth, which will likely take time,” the analyst wrote in a note to investors.
Kupferberg upgraded Capital One Financial (NYSE:COF), Discover Financial Services (NYSE:DFS), and Jack Henry & Associates (NASDAQ:JKHY) from Neutral to Buy in the report. In premarket activity, COF increased 1.8%, DFS rose 1.5%, and fell 0.8%.
Capital One (COF) and Discover (DFS) are “well-positioned for a re-rating as peak losses come into view,” he says. Jack Henry (JKHY) believes that his “high-quality business model should be buoyed by improving macro conditions, which could catalyze healthier spend among FIs (financial institutions).”
Kupferberg predicts that credit losses will peak in 2024. “We believe that higher unemployment will be a drag on credit, but that strong household balance sheets, tighter lending standards, and a soft landing will help.” This should pave the way for stocks to do strongly.”
Capital One (COF) is rated a Strong Buy by the SA Quant system, however Discover (DFS), Jack Henry (JKHY), Toast (TOST), and PayPal (PYPL) are rated Hold.
For Details
for Details read
Pre-Market: Pre-Market: Pre-Market: Pre-Market
Airbnb suffers as a result of KeyBanc’s downgrade
Airbnb (NASDAQ:ABNB) shares were down nearly 3% in premarket trading Tuesday after KeyBanc downgraded the business from Overweight to Sector Weight.
Following the split, WK Kellogg began at Sell.
Following the conclusion of Kellogg Company’s (NYSE:K) spinoff of its North American cereal division into the WK Kellogg standalone entity, Goldman Sachs commenced coverage on WK Kellogg (NYSE:KLG) with a Sell rating and a price target of $11.00.
WK Kellogg’s stock dropped significantly on the first day after the spinoff, closing more than 9% down on Monday.
Nortfolk Southern and Bread Financial have been downgraded.
Norfolk Southern (NYSE:NSC) shares fell more than 2% on Monday after BofA Securities downgraded the firm to Neutral from Buy and reduced its price objective to $215.00 from $266.00, citing operational difficulties and excessive costs.
Bread Financial (NYSE:BFH) has been downgraded to Sell from Neutral by Goldman Sachs, with a $32 price target. As a result, shares dropped about 2% on Monday.
Pre-Market: Pre-Market: Pre-Market: Pre-Market: Pre-Market: Pre-Market: Pre-Market: Pre-Market: Pre-Market: Pre-Market: Pre-Market:
ell suffers as a result of a downgrade by Barclays.
Dell Technologies (NYSE:DELL) shares tumbled 3% before the bell on Thursday after Barclays downgraded the firm to Underweight from Equalweight, with a $53.00 price target.
Cloudflare began at Underperform.
Cloudflare (NYSE:NET) has been added to BofA Securities’ coverage with an Underperform rating and a $52.00 price objective.
Crocs (NASDAQ:CROX) shares were down more than 2% in pre-market trading today after B.Riley downgraded the firm to Neutral from Buy and reduced its price objective to $101.00 from $125.00.
Verint Systems (NASDAQ:VRNT) was downgraded from Outperform to Perform by Oppenheimer.
Following the company’s announced Q2 EPS and sales misses, as well as dismal full-year forecasts, shares fell more than 17% pre-market today.