Mid-Day Movers : Penn Ent gains; Rivian falls: Stocks in news August 09

Mid-day Movers active stocks

Gainers

• Penn Entertainment (NASDAQ:PENN) shares increased 8% after the online betting company announced a partnership with Walt Disney (NYSE:DIS) ESPN to develop a sports betting business under the brand ESPN Bet. As a result, rival DraftKings (NASDAQ:DKNG) stock fell 9.9%.
• Twilio (NYSE:TWLO) shares increased 2.5% after the cloud computing platform operator upgraded its full-year profit prediction following solid second-quarter results.

Losers

• WeWork (NYSE:WE) stock fell 36% after the workspace provider expressed “substantial” concerns about its capacity to continue as a going concern and announced the resignation of three board members.
• Rivian Automotive (NASDAQ:RIVN) stock slumped 8.6% after the electric vehicle manufacturer raised its yearly output target following a narrower-than-expected loss in the second quarter as production ramped up.
• Lyft’s (NASDAQ:LYFT) stock dropped 8% on worries that the ride-hailing platform’s emphasis on competitive pricing to increase market share will clog its route to profitability.
• Sony (NYSE:SONY) stock dropped 7% after the Japanese conglomerate upped its full-year sales projection due to expected growth in its PlayStation game sector, but posting a 31% reduction in first-quarter profit.
• Amazon (NASDAQ:AMZN) stock dipped 1.2% after Reuters reported that the online e-commerce giant is in talks to become an anchor investor in Softbank-owned chip manufacturer Arm’s planned initial public offering.
• United Parcel Service (NYSE:UPS) stock dipped 0.8% after UBS downgraded the transportation company’s stock to ‘neutral’ from ‘buy,’ citing margin concerns and decreased shipment volumes.

MARKET MOVERS 

After-Market movers

GAINERS

• AppLovin (APP) is up 21%; it reported Q2 earnings per share of $0.22, $0.14 higher than the average forecast of $0.08. Revenue for the quarter was $750 million, compared to the consensus estimate of $723.97 million. AppLovin anticipates revenue of $780-800 million in Q3 2023, compared to the consensus of $741.41 million.
• Sonos (SONO) is up 11%; the company posted Q3 earnings per share of $0.16, $0.32 higher than the analyst expectation of ($0.16). Revenue for the quarter was $373.4 million, compared to the consensus expectation of $335.91 million.
• Leslie’s, Inc. (LESL) is up 5% after the CEO purchases $350,000 in stock.
• Walt Disney (DIS) is up 3% after reporting Q3 earnings per share of $1.03, $0.04 higher than the analyst forecast of $0.99. Revenue for the quarter was $22.33 billion, compared to the consensus forecast of $22.49 billion. Will increase streaming prices by up to 27%.
• Kenvue Inc. (KVUE) is up 3% and will be included in the S&P 500.

LOSERS

• The Trade Desk Inc. (TTD) is down 5% after reporting Q2 earnings per share of $0.28, $0.02 higher than the analyst forecast of $0.26. Revenue for the quarter was $464 million, compared to the consensus expectation of $454.71 million. The Trade Desk Inc. expects revenue of at least $485 million in the third quarter of 2023, compared to the consensus of $479.61 million.
• Illumina (ILMN) is down 5%; it posted Q2 earnings per share of $0.32, $0.30 higher than the analyst forecast of $0.02. Revenue for the quarter was $1.18 billion, compared to the consensus forecast of $1.16 billion. Illumina expects FY2023 earnings per share of $0.75-$0.90, compared to the average of $1.33.

UPGRADES BY EXPERTS

Following a good second quarter, Jefferies upgraded Eli Lilly (NYSE:LLY) to Buy from Hold and boosted its price objective to $615.00 from $430.00.

DraftKings receives two further improvements.

JPMorgan raised the stock to Neutral from Underweight, with a $26.00 price target.

Wells Fargo upgraded the company, predicting that EBITDA forecasts will rise further.

JPMorgan upgraded United States Cellular (NYSE:USM) from Neutral to Overweight and increased its price objective to $52.00 from $24.00.

DISH Network (NASDAQ:DISH) was upgraded to Equal Weight from Underweight by Barclays, and its price objective was boosted to $10.00 from $5.00.

DOWNGRADES BY EXPERTS

Qualcomm has cut prices yet again.

Qualcomm (NASDAQ:QCOM) was reduced to Outperform from Buy by Daiwa Securities on Wednesday, with a price objective of $125.00.

Following the guidance cut, Datadog was reduced to Hold.

Stifel downgraded Datadog (NASDAQ:DDOG) to Hold from Buy and decreased its price objective to $90.00 from $115.00 on Wednesday.

RingCentral (NYSE:RNG) was downgraded twice after the company’s full-year forecast came in lower than expected, despite Q2 results exceeding expectations. As a result, shares fell more than 18% yesterday.

Morgan Stanley downgraded the stock from Overweight to Equal Weight and reduced its price objective to $42.00 from $49.00.

Meanwhile, Craig-Hallum lowered to Hold from Buy with a $38.00 price target.

JPMorgan downgraded Celanese (NYSE:CE) to Neutral from Overweight and reduced its price target to $122.00 from $135.00 following the company’s weaker-than-expected second-quarter earnings.

Earnings Calendar

Wednesday, August 9

The Walt Disney Company (DIS), Honda Motor Company (HMC), Manulife Financial Corp. (MFC), Illumina (ILMN), Roblox Corporation (RBLX), U-Haul Holding Company (UHAL), Charles River Laboratories International (CRL) 

Thursday, August 10

Alibaba Group (BABA), Brookfield Corporation (BN), Wheaton Precious Metals Corp. (WPM), News Corporation (NWS), US Foods Holding Corp. (USFD)

For details

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