Pre-Market : Google gains ; Snap Falls: Stocks in news July26

21Pre-Market

Pre-Market active stocks

Gainers

• Alphabet (NASDAQ:GOOGL) shares surged 6.2% after the Google parent company impressed with its second-quarter profit thanks to stable demand for its cloud services and an increase in advertising.
• Wells Fargo (NYSE:WFC) stock climbed 2.5% after the bank’s board of directors authorised a fresh $30 billion share buyback program.
• Stellantis (NYSE:STLA) shares increased 2.1% after the world’s third-largest automaker by sales exceeded first-half revenue and operating profit estimates, with CEO Carlos Tavares stating that cost cutting must speed up to maintain profitability in a more tough pricing environment.
• AT&T (NYSE:T) stock jumped 2% after the telecommunications behemoth topped second-quarter free cash flow projections, as efforts to reduce expenses and recruit cellular monthly paying consumers with lower-cost plans paid off.
• Coca-Cola (NYSE:KO) stock increased 1.7% after the soft drinks conglomerate increased its annual revenue prediction, counting on higher pricing and sustained demand for its products.
• The shares of Deutsche Bank (NYSE:DB) climbed 1.7% after the German lender reported a 27% drop in second-quarter earnings due to a drop in investment banking revenue, but this was still better than expected.
• Amazon (NASDAQ:AMZN) shares slumped 1.6% after Politico reported that the US Federal Trade Commission is preparing its long-awaited antitrust action against the online retail behemoth, which could ultimately result in the business being split up.

Losers

• Snap (NYSE:SNAP) stock plunged 17.5% after the owner of the photo messaging app published weaker-than-expected third-quarter projections, indicating that it is struggling to compete for advertising revenue with larger tech rivals.
• Microsoft (NASDAQ:MSFT) stock sank 3.6% as the software giant said that growth at its main Azure cloud computing segment slowed to 27% from April to June as clients cut back on spending due to economic concerns.

MARKET MOVERS 

After-Market movers

GAINERS

• Align Technology (NASDAQ:ALGN) 12% higher; Q2 EPS $2.22, $0.18 more than analyst expectation $2.04. Quarterly revenue was $1 billion versus the consensus expectation of $992.76M. Align Technology expects Q3 2023 revenue of $990-1.01B versus the consensus of $990M. Align Technology expects FY2023 revenue of $3.97-3.99B versus the consensus of $3.94B.
• Meta Platforms (META) 6% higher; Q2 EPS $2.98, $0.07 more than consensus forecast $2.91. Quarterly revenue was $32B, exceeding the consensus expectation of $31.08B. Meta Platforms expects $32-34.5B in Q3 2023 sales, compared to $31.2B consensus.

LOSERS

• Impinj Inc (NASDAQ:PI) 16% down; Q2 EPS of $0.33 above consensus estimate of $0.30. Quarterly revenue was $86 million, beating the average forecast of $85M. Impinj expects Q3 2023 EPS of ($0.12)-($0.06) versus the consensus of $0.38. Impinj expects $63-66M Q3 2023 sales, compared to $88M estimate.
• Chipotle Mexican Grill (NYSE:CMG) 9% down; Q2 EPS $12.65, $0.36 greater than analyst forecast $12.29. Quarterly revenue was $2.5B, above the consensus forecast of $2.53B. Analysts projected 7.5%, while same store sales rose 7.4%. The company expects low-to-mid-single-digit third-quarter comparable restaurant sales growth. Full-year comparable restaurant sales growth was mid- to high-single digits.
• eBay (NASDAQ:EBAY) 5% lower; Q2 EPS of $1.03 beat analyst forecast of $0.99. Compared to the average forecast of $2.51B, quarterly revenue was $2.5B. eBay expects Q3 2023 EPS of $0.96-$1.01, versus $0.92 consensus. eBay expects Q3 2023 revenue of $2.46-2.52B, compared to $2.23B consensus.

MIDDAY MOVERS

GAINERS

• Alphabet (NASDAQ:GOOGL) shares jumped 5.7% after the Google parent company impressed with its second-quarter profit due to consistent demand for its cloud services and an increase in advertising.
• Stellantis (NYSE:STLA) shares increased 3.4% after the world’s third-largest automaker by sales exceeded first-half revenue and operating profit estimates, with CEO Carlos Tavares stating that cost cutting must speed up to maintain profitability in a more tough pricing environment.
• Wells Fargo (NYSE:WFC) stock climbed 1.7% after the bank’s board of directors authorised a fresh $30 billion share buyback program.
• Coca-Cola (NYSE:KO) stock jumped 1.2% after the soft drinks conglomerate upped its annual revenue projection, counting on higher pricing and robust demand for its products.
• The shares of Deutsche Bank (NYSE:DB) climbed 0.5% after the German lender reported a 27% drop in second-quarter earnings due to a drop in investment banking revenue, but this was still better than expected.
• AT&T (NYSE:T) stock increased 0.4% after the telecommunications behemoth topped second-quarter free cash flow projections, as efforts to reduce expenses and recruit cellular monthly paying consumers with lower-cost plans paid off.

LOSERS

• Snap (NYSE:SNAP) stock plunged 18.9% after the owner of the photo messaging app published weaker-than-expected third-quarter forecasts, indicating that it is struggling to compete for advertising revenue with larger tech rivals.
• Microsoft (NASDAQ:MSFT) stock plummeted 4.6% after the software giant said that growth at its main Azure cloud computing segment slowed to 27% from April to June as clients cut back on spending due to economic concerns.
• Amazon (NASDAQ:AMZN) shares slumped 1.2% after Politico reported that the US Federal Trade Commission is preparing its long-awaited antitrust action against the online retail behemoth, which could ultimately result in the business being split up.

UPGRADES BY EXPERTS

Meta Platforms receives an upgrade from New Street Research.

New Street Research upgraded Meta Platforms (NASDAQ:META) to Buy from Neutral and boosted its price target to $350.00 from $285.00 ahead of the company’s forthcoming Q2/23 earnings announcement, which is slated for today after the market close.

The stock of Zscaler has risen as a result of the BTIG upgrade.

Zscaler (NASDAQ:ZS) shares rose more than 4% yesterday after BTIG upgraded the firm to Buy from Neutral with a price target of $185.00.

NetApp (NASDAQ:NTAP) shares rose more than 1% in pre-market trading today after Morgan Stanley upgraded the firm to Equalweight from Underweight and boosted its price objective to $74.00 from $60.00.

WW International (NASDAQ:WW) shares rose more than 6% in pre-market trading today after Morgan Stanley upgraded the firm to Overweight from Equalweight and boosted its price objective to $13.00 from $5.00.

DOWNGRADES BY EXPERTS

Target stock declines on a rating by Raymond James

Today’s pre-market decline in Target (NYSE:TGT) shares was more than 1.5% after Raymond James downgraded the stock from Outperform to Market Perform.

Citi downgrades Goldman Sachs to Neutral

Shares of Goldman Sachs (NYSE:GS) dropped more than 1% yesterday after Citi downgraded the stock from Buy to Neutral with a $400.00 (from $370.00) price target, citing that the valuation is too high.

Following last week’s Q2 results, which featured an EPS beat but lower-than-expected revenues, DZ Bank downgraded American Express (NYSE:AXP) from Buy to Hold with a price target of $180.00. This is American Express’s second rating cut this week.

Ahead of the company’s Q2 results announcement tomorrow, BofA Securities reduced Tractor Supply (NASDAQ:TSCO) to Neutral from Buy and lowered its price objective to $226.00 from $270.00.

Earnings Calendar

WEDNESDAY JULY 26

Meta Platforms (META), The Coca-Cola Company (KO), Thermo Fisher Scientific (TMO), Union Pacific Railroad (UNP), Boeing (BA), Automatic Data Processing Inc. (ADP), AT&T (T), Chipotle Mexican Grill (CMG), Stellantis (STLA), and O’Reilly Automotive (ORLY)

THURSDAY JULY 27

Mastercard (MA), AbbVie (ABBV), McDonald’s (MCD), Shell (SHEL), Linde (LIN), Comcast (CMCSA), T-Mobile (TMUS), Intel (INTC), Honeywell International (HON), and S&P Global Inc. (SPGI)

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