Today, Stock futures rose higher in the early trading hours of Tuesday, with Nasdaq Futures rising 0.5% to a session high as Apple’s China iPhone shipments returned.
Top stock gainers
Shares of meme stock GameStop (GME) rose nearly 17% after the company announced the conclusion of a previously disclosed, roughly $933.4M equity offering with the selling of 45M shares. It aims to use the proceeds for general corporate purposes, which may include acquisitions and investments. The sale follows a recent increase in meme shares following the return of influential trader and analyst Keith Gill to social media. Gill, popularly known as “Roaring Kitty,” was an important figure in the 2021 meme-stock frenzy.
CAVA Group’s (CAVA) shares climbed over 5% ahead of the company’s Q results, anticipated after the market close, with analysts predicting EPS of $0.05 and the consensus sales of $245.46M. Over the last 3 months, EPS forecasts have seen 5 upward revisions and 0 downward adjustments, while revenue expectations have seen 9 upward revisions and 1 negative revision.
Top stock losses
Hello Group’s (MOMO) shares plummeted roughly 6% as the firm posted mixed Q1 results, with revenue dropping 9% Y/Y on the back of a decline in live video service sales, Value-added service revenues, and Mobile gaming revenues. Monthly active users on the Tantan app declined to 13.7M, compared to 19.5M a year earlier, while Momo’s total paying users were 7.1M in Q1, compared to 7.8M a year before. The business also forecasts Q2 total net revenues between RMB2.65B and RMB2.75B, a fall of 15.5% to 12.4% Y/Y.
Premarket
Gainers
GameStop (NYSE:GME) stock rose over 24% after the video game retailer reported it hauled in more than $933 million from the selling of 45 million shares.
Insmed (NASDAQ:INSM) stock more than doubled after the biopharmaceutical company revealed favorable findings in Phase 3 trials for its medication to treat non-cystic fibrosis bronchiectasis.
CAVA Group (NYSE:CAVA) shares increased 2.9% ahead of the first-quarter earnings from the Mediterranean restaurant chain, as it swiftly adds new locations throughout the U.S. market.
Nvidia (NASDAQ:NVDA) stock increased 2.7%, with the tech giant’s stock continuing to gain, with its market worth topping $2.5 trillion since its quarterly results, establishing its place as the third most valuable business on Wall Street.
Apple (NASDAQ:AAPL) stock jumped 1.9% after the iPhone maker’s smartphone shipments in China were 52% higher in April than a year ago, according to statistics from a research firm linked with the Chinese government.
Losers
DraftKings (NASDAQ:DKNG) shares plunged 8.4% and Flutter Entertainment (NYSE:FLUT) dropped 4.3% after the Illinois Senate passed a plan that includes a sports-betting tax hike.
Tesla (NASDAQ:TSLA) stock declined 0.5% following reports that proxy advice Glass Lewis has advised on shareholders to oppose a proposal that would see CEO Elon Musk paid $56 billion.
Stocks In Focus
US Cellular (USM) shares rose more than 10% in pre-market trading after the firm announced a $4.4B sale of most of its wireless business to T-Mobile US (TMUS). Minor decline in TMUS shares. US Cellular’s wireless users, stores, and spectrum holdings will be acquired by T-Mobile (TMUS). It will receive cash and assume up to $2B of US Cellular’s (USM) debt. The Wall Street Journal reported last month that T-Mobile (TMUS) and Verizon (VZ) were working on separate deals to divide US Cellular (USM), one of the last major regional wireless operators.
Apple (AAPL) rose 1.5% before the bell. The advance followed Bloomberg News’ report that iPhone shipments in China rose 52% in April due to discounts. The China Academy of Information and Communications Technology reported 3.5M international smartphone shipments in April, according to Bloomberg. China’s most popular foreign phone is Apple’s iPhone. The IT behemoth, which has been grappling with falling demand and market dominance in Asia, should benefit from April shipments.
CrowdStrike (CRWD) Class A shares rose over 2% before market open. Morgan Stanley projected Tuesday that the firm could nearly treble its market valuation in four to five years as the “next $100B cybersecurity company”. Morgan Stanley analyst Hamza Fodderwala stated “checks point to improving win rates in core Endpoint Security and growing adoption of the broader platform.” Strong quarterly results next week, a possible inclusion in the S&P 500 (SP500) index in June, and $10B in annual recurring revenue guidance by 2028 are catalysts for the company, according to the analyst.
Airbnb Class A shares surged roughly 2% in pre-market trading after Wedbush upgraded it to Outperform from Neutral. Airbnb (ABNB) shares have fallen -8.5% after reporting 1Q24 profits on May 8, lagging the NASDAQ (+3.8%) and Booking Holdings (+9.3%). Wedbush analyst Scott Devitt said investors should take advantage of this relative weakness and expect potential upside to near-term estimates after disappointing 2Q guidance that we consider as conservative given strong travel data points already in 2Q.
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After reporting 8% Y/Y subscription revenue growth in 4Q24, DocuSign (NASDAQ:DOCU) shares rose 10%. Electronic signature business predicts 1Q25 revenue of $704M to $708M, above analysts’ $699.1M forecast. DocuSign expects sales of $2.91B to $2.92B this year, with consensus of $2.91B. Customer adoption of Contract Lifecycle Management and eSignature in StateRAMP-authorized environments was also emphasized by the organization.
MongoDB (NASDAQ:MDB) shares fell 8% after exceeding Q4 profit and sales forecasts owing to its dovish FY2025 outlook. MongoDB expects revenues of $436M to $440M in Q1, below the average expectation of $449.08M. Below the estimate of $0.61, non-GAAP EPS is expected to be $0.34–$0.39. The business estimates FY2024 sales between $1.9B and $1.93B, below the average of $2.03B. Unlike the consensus of $3.22, non-GAAP EPS is expected to be $2.27 to $2.49.
Marvell Technology (NASDAQ:MRVL) shares fell over 7% after solid Q4 earnings due to a dismal Q1 guidance. The business predicts Q1 sales of $1.15B, plus or less 5%, behind analysts’ $1.36B. Marvell predicts adjusted gross margins of 62% to 63% and adjusted earnings of $0.18 to $0.28 per share, significantly below the average forecast of $0.40. Marvell announced $3B in stock buybacks.
Despite a 5.7% Y/Y rise, Costco Wholesale’s NASDAQ:COST shares plummeted roughly 4% as its FQ2 earnings reports fell short of the top-line estimate. Comparable sales increased by 5.6% during the quarter, above the 5.1% estimate.
MongoDB (NASDAQ:MDB) shares fell 8% after exceeding Q4 profit and sales forecasts owing to its dovish FY2025 outlook. MongoDB expects revenues of $436M to $440M in Q1, below the average expectation of $449.08M. Below the estimate of $0.61, non-GAAP EPS is expected to be $0.34–$0.39. The business estimates FY2024 sales between $1.9B and $1.93B, below the average of $2.03B. Unlike the consensus of $3.22, non-GAAP EPS is expected to be $2.27 to $2.49.
Marvell Technology (NASDAQ:MRVL) shares fell over 7% after solid Q4 earnings due to a dismal Q1 guidance. The business predicts Q1 sales of $1.15B, plus or less 5%, behind analysts’ $1.36B. Marvell predicts adjusted gross margins of 62% to 63% and adjusted earnings of $0.18 to $0.28 per share, significantly below the average forecast of $0.40. Marvell announced $3B in stock buybacks.
Despite a 5.7% Y/Y rise, Costco Wholesale’s NASDAQ:COST shares plummeted roughly 4% as its FQ2 earnings reports fell short of the top-line estimate. Comparable sales increased by 5.6% during the quarter, above the 5.1% estimate.