Today, Stock futures fell in the premarket hours on Thursday as investors awaited Friday’s highly anticipated U.S. inflation report, which could heavily influence the Federal Reserve’s interest rate decision.
Top stock gainers
BlackBerry (NYSE:BB) stock rose more than 7% after exceeding Q1 revenue projections despite a 61% Y/Y decrease. We are making substantial progress toward operational independence and profitability for our IoT and cybersecurity businesses. We exceeded our adjusted EBITDA and non-GAAP EPS expectation range this quarter and improved free cash usage for the third straight quarter. BlackBerry CEO John J. Giamatteo claimed the company will be profitable non-GAAP and generate positive cashflow in the fourth quarter. The business also maintained its FY2025 plan, forecasting FQ2 revenue of $136M to $144M vs. $142.4M and an adjusted loss per share of $0.02 to $0.04 vs. -$0.01.
Vigil Neuroscience (NASDAQ:VIGL) shares rose 17% after Sanofi (SNY) invested $40M strategically. Sanofi will get convertible preferred shares, acquiring a $7.44 VIGL holding. VIGL will use the funding for research and development, primarily its phase 1 Alzheimer’s disease TREM2 agonist program (VG-3927). Sanofi acquires exclusive licensing or commercialization negotiation rights for this program. VIGL hopes to prolong its financial runway until 2026 with this investment.
Top stock losses
Despite its positive FQ3 results, Micron Technology (NASDAQ:MU) shares fell over 6% due to their expected FQ4 outlook. The chipmaker expects Q4 revenue of $7.6B plus or minus $200M and adjusted EPS of $1–$1.16 versus the consensus of $1.02.
International Paper (NYSE:IP) fell more than 14% after Brazilian pulp and paper manufacturer Suzano (SUZ) dropped its $15B buyout deal. Suzano failed to negotiate with International Paper and wouldn’t enhance its $42 per share offer, which was rejected last month. The bid collapsed when International Paper abandoned its $9.9 billion agreement to acquire DS Smith (OTCPK:DITHF), which passed the Hart-Scott-Rodino Act waiting period but still needs European Commission clearance.
Premarket
Gainers
Losers
Levi Strauss (NYSE:LEVI) stock fell 16% after the jeans maker disclosed a fiscal second-quarter revenue miss due to weak Docker’s khaki and chinos sales.
International Paper (NYSE:IP) stock tumbled over 14% after Bloomberg reported that Suzano has hit its maximum price and is no longer seeking a takeover of the paper and packing firm.
The missile and drone maker’s fourth-quarter earnings plunged 57%, sending AeroVironment (NASDAQ:AVAV) stock down 7.1%.
Micron (NASDAQ:MU) stock slumped 6% as the chipmaker’s current quarter financial projections disappointed investors’ high expectations due to artificial intelligence enthusiasm.
Walgreens Boots (NASDAQ:WBA) alliance stock slumped 4.8% after the pharmacy chain cut its fiscal 2024 estimate due to a weak retail environment and announced further store closures as part of a strategic assessment.
GSK (NYSE:GSK) stock dipped over 1.8% after a U.S. public health body lowered its RSV vaccine usage recommendation, including Arexvy.
Two days after Volkswagen (ETR:VOWG_p) invested $5 billion in Rivian (NASDAQ:RIVN), the stock slid 1.4% as shareholders sought updates on the company’s next models and cost-cutting efforts at an investor day event on Thursday.
Uber (NYSE:UBER) stock fell 0.2% after the ride-hailing company announced it would give $1,000 in credits to U.S. and Canadian commuters who use public and other transit services for five weeks to boost revenue and reduce pollution.
Stock in Focus
Levi Strauss (LEVI) Class A shares fell more than 17% before the opening bell after the business missed quarterly revenue projections and reaffirmed its yearly top-and-bottom line guidance. The legendary jeans brand reported Q2 revenue of $1.4B, up 8% Y/Y, missing forecasts. Levi’s (LEVI) worldwide wholesale division declined mid-single digits despite strong DTC sales. Levi (LEVI) CEO Michelle Gass said the DTC shift was “yielding positive results around the world.”
With FQ4 2024 results expected after the close, Nike (NKE) shares will be watched. Wall Street anticipates Beaverton-based business to earn 84 cents per share on $12.86B in revenue. Nike’s (NKE) results are commonly used to gauge consumer spending. Citi thinks the company leads North America and Europe in sporting goods. The brokerage believes Germany’s Adidas (OTCQX:ADDDF)(OTCQX:ADDYY) threatens Nike’s (NKE) appeal in China.
A day after a historic 50-for-1 stock split, Chipotle Mexican Grill (CMG) shares rose roughly 1% in pre-market trade. After markets closed on Tuesday, Chipotle (CMG) owners received 49 more shares each share. One of the largest stock splits in NYSE history. Chipotle (CMG) stock used to trade north of $3K, and a stock split may make it more investible at its new price.
After JPMorgan downgraded U.S. Bancorp (USB) to Neutral from Overweight after the Federal Reserve’s latest stress test, the shares fell 1.5% before market open. On Wednesday, the Fed reported that all 31 banks tested this year met their minimum common equity tier 1 (CET1) capital requirements during a hypothetical recession. JPMorgan said stress test results suggested U.S. Bancorp (USB) will need a substantial rise in capital needs, adding another obstacle and delaying capital return plans.
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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.