Today, Stock futures remained essentially steady in the early trading hours ahead of the Federal Reserve’s policy meeting.
Top stock gainers
DXC Technology Company’s (NYSE:DXC) shares surged over 4% following rumors that Apollo Global (APO) and Kyndryl (KD) are in talks for a joint bid for the information technology services provider. As to the report, the takeover offer is estimated to be between $22 and $25 per share. DXC, with a market cap of $3B, is also in the process of selling its insurance software business for over $2B and may remain an independent firm.
Calavo Growers (NASDAQ:CVGW) surged 10% after announcing stronger than expected FQ2 earnings, with top-line growth of over 17% led by a 19% rise in Grow segment revenues. CEO Lee Cole commented, “The third quarter is off to a great start, and we expect strong results as we remain focused on maximizing value in our core businesses.”
Top stock losses
Yext (NYSE:YEXT) fell more than 15% after missing the consensus mark in Q1 results and presenting a poor outlook. It predicts Q2 revenue within the range of $98M to $98.4M vs. the consensus of $98.4M and adjusted EPS of $0.02-$0.03, behind the consensus of $0.09. For FY2025, the business cut its revenue expectation to $394M-$396M (average of $400.31M) from a prior view of $400M-$402M. However, the business upped its profit projection and stated it expects to record adjusted EPS of $0.35–$0.36 better than the prior expectation of $0.30–$0.31 and the consensus of $0.35. The company has announced plans to acquire Hearsay Systems for $125M and up to an additional $95M if certain performance criteria are fulfilled.
Shares of Array Technologies (NASDAQ:ARRY) plummeted about 6% after its Chief Financial Officer, Kurt Wood, announced his intention of stepping away from his post at the end of the second quarter to explore other business interests.
Target Hospitality (NASDAQ:TH) shares tumbled almost 30% on news that the Biden administration planned to close the Dilley detention center in Dilley, Texas, because to its higher operating expenses compared to other Immigration and Customs Enforcement facilities. Dilley, Target’s largest facility with over 2500 beds, is noted in its 10-K as one of the locations that the firm offers services for, such as hospitality and culinary services. This change may harm the company’s operations and finances, as the government segment constituted more than 72% of Target Hospitality’s (TH) revenue last year.
Premarket
Gainers
Calavo Growers (NASDAQ:CVGW) stock gained 13% after the major avocado industry participant posted a big beat on both earnings and revenue for its fiscal second quarter.
Eli Lilly (NYSE:LLY) stock jumped 2.1% after its Alzheimer’s medicine donanemab received unanimous backing from an FDA panel.
General Motors (NYSE:GM) stock jumped 1.1% after the auto giant’s board has authorized a fresh $6 billion stock repurchase plan.
Tesla (NASDAQ:TSLA) stock climbed 0.2% after Bloomberg reported Scottish fund manager Baillie Gifford is expected to vote in favor of President Elon Musk’s $56 billion pay plan.
Rocket Lab USA (NASDAQ:RKLB) stock increased 0.2% after the business signed conditions to obtain approximately $24 million in funding under the U.S. CHIPS Act to enhance the production of semiconductors that power spacecraft.
Losers
Yext (NYSE:YEXT) stock slumped 12% after the digital presence platform for multi-location brands revealed its plan to purchase Hearsay Systems, a leading digital client engagement solution for the financial sector, for $125 million.
Coinbase (NASDAQ:COIN) stock slumped 3.8%, with the cryptocurrency exchange stung hard by the 4% decline in the price of bitcoin, the most popular digital currency.
Apple (NASDAQ:AAPL) shares slipped 0.2% as the tech giant presented a long-awaited AI strategy, integrating its new “Apple Intelligence” technology throughout its suite of apps including Siri and introducing OpenAI’s chatbot ChatGPT to its devices.
Stock in Focus
Apple (AAPL) stock dipped slightly before market open, extending losses from the previous session. The company’s annual developers conference on Monday drew mixed reviews, with investors worried that the tech giant’s AI program is catching up to rivals. But analysts praised Apple’s (AAPL) disclosures as a “milestone moment” for AI. Tim Cook’s company unveiled Apple Intelligence and ChatGPT in Siri at the conference.
Oracle (ORCL) will report FQ4 2024 numbers after the bell. Wall Street anticipates Oracle (ORCL) will earn $1.65 per share on $14.57B in revenue. Oracle’s fiscal fourth quarter has traditionally been robust, therefore the top line should grow Y/Y. Since IBM became a $300B+ behemoth by becoming a cloud computing giant, investors will be watching its performance. AI remarks will also be monitored.
GM stock rose 1.5% pre-market. The “Detroit Three” carmaker’s board approved a $6B stock buyback program to restore cash to shareholders. New buyback authorization follows the end of a $10B program announced in November 2023. “The investments GM made in its brands and product portfolio over the last several years, and the company’s operating discipline, are delivering consistently strong revenue growth, margins and free cash flow,” Paul Jacobson of GM stated.
Confluent (CFLT) Class A shares rose roughly 2% before the opening bell after Evercore ISI initiated coverage with an Outperform rating and $35 target price, representing a 34.3% upside to the last close. The brokerage said the company “is the runaway market leader in the nascent $60B plus (and growing) data streaming market.” According to its website, Confluent’s (CFLT) cloud-native platform “acts as a central nervous system in companies” by connecting all apps around “real-time streams.”
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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.