Pre-Market:Pre-Market

Pre-Market active stocks

Gainers

• Restaurant Brands (NYSE:QSR) stock gained 1% as the firm beat third-quarter earnings projections while missing quarterly sales expectations on Friday, as still-high inflation weighed on consumer spending at its Burger King business.
• Cinemark (NYSE:CNK) stock increased 2.4% after the movie theater operator swung to a profit in the third quarter despite solid box office trends, fueled by the flicks ‘Barbie’ and ‘Oppenheimer’.
• Block (NYSE:SQ) stock jumped 16% after the payments company announced a $1 billion stock buyback plan and higher-than-expected profitability outlook for 2024.
• Paramount Global (NASDAQ:PARA) stock rose 5.1%; After reporting solid revenue and subscription trends in its third-quarter results report, Paramount Global (NASDAQ:PARA) shares jumped 5.1%.
• DraftKings (NASDAQ:DKNG) shares jumped 4.6% after the sports betting business topped quarterly earnings projections, propelling it to the top of the highly competitive online gambling market.
• The shares of Live Nation Entertainment (NYSE:LYV) climbed 5.5% after the Ticketmaster parent surpassed market expectations for third-quarter revenue, thanks to high ticket prices and soaring concert demand.
• Enbridge (NYSE:ENB) stock jumped 1.2% after the pipeline operator topped third-quarter profit projections, owing to greater oil transport volumes.

Losers

• Bloomin Brands (NASDAQ:BLMN) stock dropped 6.7% after the parent company of Outback Steakhouse lowered its full-year outlook to reflect a soft dining environment.
• Sempra Energy (NYSE:SRE) stock slid 3% after the electricity and gas utility reported higher-than-expected third-quarter profit but lower-than-expected revenue.
• Apple (NASDAQ:AAPL) stock slumped 2.2% after the iPhone maker forecasted lower-than-expected quarterly revenue, blaming sluggish demand for iPads and wearables, particularly in major market China.

Upgrades

Uber gets an upgrade before Q3 earnings.

KeyBanc raised Uber Technologies (NYSE:UBER) to Overweight from Sector Weight with a $60.00 price target.

Uber’s stock rose over 6% yesterday after New York’s attorney general announced a $290 million deal to end a multi-year probe. The study said Uber routinely cheated drivers out of money and benefits.

The business will release Q3/23 earnings on Nov. 7. Street projections are $0.07 EPS and $9.54 billion revenue.

HSBC upgraded Moderna to Hold.

HSBC raised Moderna (NASDAQ:MRNA) to Hold from Reduce with a $69.00 price target (from $89.00) after its Q3 earnings yesterday.

Moderna’s Q3 EPS was ($9.53), below the consensus estimate of ($1.90), due to a $3.1 billion downsizing and tax valuation allowance charge. Inventory write-downs for surplus and obsolete COVID-19 products total $1.3B.

Q3 earnings boosted Zillow at CFRA.

CFRA raised Zillow (NASDAQ:ZG) Group (NASDAQ:Z) to Strong Buy from Buy with a $47.00 price target.

Sharing dipped over 2% yesterday as the company reported Q3 results. Revenue rose 3% to $496 million, topping the consensus forecast of $481.06M. Residential revenue of $362M dropped 3% year-over-year but exceeded the company’s high expectations.

Piper Sandler upgraded Aptiv after Q3 report.

After its Q3 beat, Piper Sandler raised Aptiv (NYSE:APTV) to Neutral from Underweight with a $80.00 price objective (from $82.00). The quarterly report hurt the market, with the stock falling over 10% yesterday.

Piper Sandler believes this drop is a continuation of an August sell-off. Aptiv’s stock is near the revised price objective of $80, so analysts think it’s time to soften its bearishness, therefore the Neutral rating.

Downgrades

FOX slammed JPMorgan after Q1 reports
After Fox Corp (NASDAQ:FOXA) reported Q1 results yesterday, JPMorgan downgraded it to Neutral from Overweight and lowered its price objective to $36.00 from $40.00.
While revenue exceeded the forecast of $3.18B at $3.21 billion, earnings fell by roughly 33%. The decline in political advertising, higher costs of airing the women’s soccer World Cup, and digital platform expenditures contributed to this earnings loss.

Poor guidance led to several downgrades for Fortinet.

Fortinet (NASDAQ:FTNT) was downgraded today after its third-quarter results report and decreased expectations due to sluggish business investment and economic uncertainty. This news caused the company’s shares to drop almost 23% pre-market today.

JPMorgan downgraded Fortinet from Overweight to Neutral and lowered its price objective from $67.00 to $52.00. Analysts worried about heightened risks during this economic cycle due to Fortinet’s billing and revenue falling short of forecasts and a continuous reduction in full-year guidance. They ascribed the quarter’s weakness to sales execution challenges and Service Provider and Retail downturn.

Evercore ISI downgraded Fortinet from Outperform to In Line and lowered its price target from $78.00 to $51.00. The analysts maintained confidence in Fortinet’s management and long-term execution, but the reorganization focusing on Secure Networking, Security Operations, and Universal SASE core growth areas may introduce short-term uncertainties, given the firewall appliance market’s current challenges.

Fortinet fell from Outperform to Perform at Oppenheimer. Stifel downgraded from Buy to Hold and lowered its price objective from $69.00 to $52.00. William Blair lowered Fortinet’s Outperform to Market Perform. Finally, Cantor Fitzgerald downgraded Fortinet from Overweight to Neutral and lowered its price target from $75.00 to $50.00.

Scotiabank southern cut

Southern (NYSE:SO) was reduced to Sector Perform from Sector Outperform by Scotiabank with a $78.00 price target after its Q3 earnings yesterday.

Quarterly EPS was $1.42, exceeding the consensus forecast of $1.33. However, $7B revenue fell short of $8.22B consensus. After the report, shares surged over 2% yesterday.

JPMorgan cut to Hold at Odeon Capital

Odeon Capital downgraded JPMorgan Chase (NYSE:JPM) to Hold from Buy and lowered its price objective to $140.00 from $161.00. Although experts consider JPMorgan the top U.S. bank, they expect near-term issues that could hurt its shares.

Due to potential massive bank repercussions, the U.S. government controls bank growth post-2008. Analysts say new laws like the Basel Endgame might lower market making profitability, limit core lending, create operational issues, and increase capital needs. If implemented, these laws may dramatically impact JPMorgan, the nation’s largest bank, economists say.

JPMorgan’s net interest income is $80 billion, but decreasing interest rates might cut earnings by $2-$3 billion. The bank’s net charge-off rate may climb due to consumer sector issues. The analysts also observed that expenses may rise and trading regulation changes may impact JPMorgan’s capital markets revenue.

Stock on watch for Today

Apple

Before opening bell, Apple (NASDAQ:AAPL) stock was among the most frequently traded, losing 3.4%. The world’s largest publicly traded firm predicted a fifth straight quarterly revenue loss in the crucial holiday season quarter. Some Wall Street analysts trimmed their estimates and said the iPhone maker made “lot of noise” in its data. The business reported a 1% Y/Y revenue drop to $89.5B after hours on Thursday, although iPhone sales rose 3% to $43.8B, meeting expectations. Check AAPL charts.

Paramount Global

Pre-market trading saw Paramount Global (PARA) class B shares rise roughly 8% and class A shares (PARAA) remain steady. The media and entertainment company slashed streaming losses in Q3, beating revenue and profit expectations. Its subscription streaming service Paramount+ grew 61% Y/Y due to 2.7M new subscribers and more advertising revenue. In 2023, top boss Bob Bakish expects direct-to-consumer losses to be lower than in 2022, “meaning streaming investment peaked ahead of plan.”

Expedia

Expedia (EXPE) stock rose more than 10% before market open after the online travel booking business reported record Q3 revenue and profitability despite missing gross bookings projections. Additionally, Expedia (EXPE) announced a $5B share repurchase. Travel demand was “resilient” and the company’s new loyalty program had “good early results” according to CEO Peter Kern. EXPE’s peer Booking Holdings (BKNG) beat quarterly top and bottom lines, although its shares fell more than 3%.

Coinbase Global

Coinbase Global (COIN) Class A shares fell 2% in pre-market trading after the cryptocurrency exchange reported a 50% Y/Y and 17% Q/Q reduction in total trade volume to $76B in Q3. Coinbase (COIN) reported “multi-year low levels of volatility” in the quarter and “meaning positive” adjusted EBITDA for 2023 in a shareholder letter. Friday saw the crypto sector in the spotlight as Sam Bankman-Fried, the founder of collapsed exchange FTX, was found guilty on all seven fraud and conspiracy charges.

Weekly Earnings Calendar

Friday, NOV 03

Bloomin Brand (BLMN), CBOE (CBOE), ominion (D), Fluor (FLR), Monster Beverage (MNST), Restaurant Brands (QSR).

For Details

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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. 

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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.