Market Movers/ Stocks in News may 8th

market movers

Major Deals

Experts Ratings on tech stocks 

Stocks in news

MARKET MOVERS

MAJOR DEALS 

While PacWest acknowledges the rumours of a sale, Western Alliance

On Thursday, Western Alliance (NYSE:WAL) released a statement disputing the Financial Times allegation regarding a prospective corporate sale. The bank asserts that the item is entirely incorrect and denies that it is considering a sale or consulting with a strategic advisor.

JPMorgan acquires First Republic

The Federal Deposit Insurance Corporation (FDIC) said on Monday that it has accepted JPMorgan’s (NYSE:JPM) offer to purchase the vast bulk of the assets and take over the deposits of the insolvent regional lender First Republic Bank (OTC:FRCB).

 JPMorgan will pay the FDIC $10.6 billion, and the FDIC will provide the bank a $50 billion, five-year fixed-rate credit facility in exchange.

JPMorgan anticipates that the transaction will create more than $500 million in additional net income annually and be mildly EPS accretive.

TD Bank and First Horizon end their merger deal.

Following the news that the previously announced merger agreement with TD Bank (NYSE:TD) has been cancelled, First Horizon’s (NYSE:FHN) shares fell more than 33% on Thursday, according to a headline quickly published by InvestingPro.  The two parties reached a conclusion together.

Apollo Global will purchase Arconic.

Shares of Arconic (NYSE:ARNC) increased by more than 28% on Thursday after Apollo Global (NYSE:APO) announced its purchase. Shareholders of Arconic will receive cash payments of $30 per share, giving the business an estimated enterprise value of $5.2 billion.

Experts Ratings on tech stocks 

Apple wins the race.

As a result of higher-than-anticipated iPhone sales, Apple Inc. (NASDAQ:AAPL) beat first-quarter profit predictions on Thursday, posting earnings per share of $1.54 as opposed to the $1.43 average analyst estimate.

Additionally, Apple increased its dividend and disclosed a $90 billion share repurchase plan.

Broking companies 

Goldman Sachs buy tgt 209 has given : KeyBanc tgt $180 a buy rating.

Advanced Micro Devices’ (NASDAQ:AMD) roller coaster week 

AMD announced a better-than-expected Q1 on Tuesday but offered unimpressive outlook, leading to a 9% selloff in the shares the following day.

According to the source, Microsoft and AMD have collaborated to develop a competitor to Nvidia’s (NASDAQ:NVDA) artificial intelligence processors. As it collaborates with the chipmaker on a custom Microsoft processor for AI workloads, Microsoft will financially assist AMD’s efforts.

brokers’ offices 

Citi upped target price by $85 ; BofA: Neutral from Buy.

Qualcomm’s poor forecast

Shares of Qualcomm (NASDAQ:QCOM) dropped after the firm predicted results for its fiscal third quarter that were far below expectations: In contrast to the average estimate of $2.20 for EPS and $9.25 for sales, the business anticipates 3Q23 earnings per share in the range of $1.70-$1.90.

Earnings for the second quarter of $2.15 per share met expectations.

Brokerage firms negative

Mizuho reduced $10 to target $140; Deutsche Bank trimmed $20 to target $130. 

 Block’s powerful Q1

Block (NYSE:SQ) shares originally increased after the fintech company disclosed better-than-anticipated Q1 results, including above-average sales of $4.99 billion and profits per share of $0.40 compared to Wall Street’s projection of $0.35.

The business increased its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) outlook for the entire year from $1.3 billion to $1.36 billion.

After results, both JPMorgan and Morgan Stanley had favourable opinions on the stock.

Coinbase failed to attaract

Because of cost reductions and an increase in subscription income, Coinbase’s Q1 earnings were better than anticipated: Compared to predictions of $1.39 in the red, the corporation lost just $0.34 per share.

BofA Underperform rating: Barclays lowers target price from $74 to $61 

Stocks In News

• Figs Inc;FIGS announced a 1Q beat on revenue (+9.2% vs. +2% on the Street), GM% (+10 vs. -350 vs. 71.3%), and EBITDA margin (+930 vs. -1,340 vs. 13.4%).
• Qurate Retail Inc:Shares of QRTEA rise following the Q1 beat (revs $2.64B above $2.56B expected, but down from $2.88B y/y).
• DraftKings Inc DKNG shares increase as sales increased by more than 80% from the previous year to $770M, above predictions of $705M, and as adjusted Ebitda is now expected to comfortably surpass $3 billion annually for the first time.
•   COLYFT Inc  Shares of LYFT fall as projection misses expectations and Q2 revenue ranges between $1.0B and $1.02B vs. est. $1.08B;
• Booking Holdings Inc BKNG Due to high demand and widening booking windows, BKNG 1Q22 nights/bookings were 7%–8% higher than expected. Due to BKNG’s increased investment in paid marketing, EBITDA fell 6% short of expectations;
• Expedia Group Inc EXPE released positive 1Q23 results highlighted by a $1.1 billion gross bookings beat and an improvement in the foreign market.
• EOG Resources Inc EOG surpassed expectations for production, EBITDA, and FCF in the first quarter of this year. 
• Coterra Energy Inc CLTRA Ahead of consensus expectations of $1,176/$1,140mm and $525/$483mm, respectively, CTRA produced a 1Q23 beat on EBITDA and FCF of $1,230mm and $555mm, respectively, while its FY23 production and expenditure projection stayed the same.
• Coinbase Global IncI COIN INC  Q1 numbers were better than expected, but the business warns of decreasing subscription and services revenue; 1Q sales fell 34% year over year to $772.5M vs. the expected $653.8M;
• Block Inc  SQ reports 1Q23 gross profit above of expectations and moderate projection increase because to robust Cash App growth (new actives up 17% YoY, inflows per active up 8% YoY, and enhanced monetization).
• Apellis Pharmaceuticals Inc APLS reported Q1 Syfovre revenues of $18MM, much above the average estimate of $2.5MM. They also revealed that >6k vials were distributed to physicians during the first 5 weeks of introduction, showing a demand of about $11-12MM, as calculated by TDCowen.   
• Bio-Rad Laboratories, Inc.   BIO was among the weakest performers in the S&P and reported a quarterly shortfall ($3.34/$676.8M vs. est. $3.54/$689.8M) and stated it expects 4.5% increase in currency-neutral sales in FY23.
• Lantheus Holdings Inc LNTH’s 1Q performance exceeded Street estimates by $20mn/$0.18 thanks to sustained success at Pylarify ($196mn real; $181mn street).
• Live Nation Entertainment Inc LYV shares increased after the company reported a lower quarterly loss, citing extraordinary demand for live performances and revenue growth of 73% year over year to $3.1 billion, much above the $2.27 billion expectation. 
• Warner Bros Discovery Inc WBD reported an unexpected quarterly loss, as its $10.7B in revenue fell barely short of expectations.
• Godaddy Inc GDDY produced consistent first-quarter results, with strong growth in applications and commerce (12% y/y) but poorer results in the core platform (0% y/y), mostly because aftermarket sales were slower.
• BILL Holdings Inc BILL shares increase on a beat on results, an improved outlook, and better-than-expected core TPV growth;
• Atlassian Corp TEAM ;shares dropped as the company reported good F3Q revenue upside, mostly owing to robust Data Centre activity, while cloud revenue growth slowed to 34% Y/Y (from 41% in F2Q) primarily due to lower installed base expansion rates, and the company forecast Q4 revenue between $900M and $920M vs. an estimate of $919.51M; 
• Five9 Inc FIVN; reported a beat/raise for 1Q23, with an anticipated modest decline in top line for C2H23 as 1Q/2Q upside was not carried over to top-line guidance for 2023;
• Fortinet Inc FTNT; With product revenue growth of 35% Y/Y also indicating solid upside and higher Q2 projection, FTNT announced total billings growth of 30% Y/Y, above the Street’s estimate of 25%.

Earning calendar

PayPal (PYPL), Dish Networks (DISH), Dish, Devon Energy, FreshPet, Lucid, and Palantir (PLTR).