Today, Stock futures fell slightly in premarket hours, a day after the Dow briefly surpassed 40,000 for the first time ever.
Top stock gainers
Reddit (NYSE:RDDT) shares rose 14% after the company announced a new alliance with Microsoft-backed OpenAI (MSFT). This cooperation will integrate Reddit material with ChatGPT, giving OpenAI access to the Reddit Data API. OpenAI’s AI models can now learn from Reddit posts in real time. The agreement also includes new AI-powered tools for Reddit users and moderators, and OpenAI will become an advertising partner.
Canopy Growth (NASDAQ:CGC) shares increased more than 5%, along with other cannabis firms, after the US Department of Justice publicly suggested reclassifying marijuana as a less hazardous Schedule III narcotic. The DOJ noted that this decision indicates marijuana’s acceptance as a medicinal therapy in the United States. Marijuana is currently classified as a Schedule I drug, which means it has a high potential for abuse and no accepted medical uses.
Doximity (NYSE:DOCS) shares rose more than 18% after reporting better-than-expected FQ4 results and a bullish outlook. The business predicts Q1 revenues of $119.5M to $120.5M, slightly above the consensus of $119.06M. The company predicts adjusted EBITDA between $55M and $56M. Sales for FY2025 are expected to be between $506M and $518M, below the consensus expectation of $520.15M.
Top stock losses
GameStop (NYSE:GME) fell 20% on Friday after falling 30% on Thursday. After reporting disappointing preliminary Q1 results and submitting an SEC mixed securities shelf registration, the business fell. The store predicts net sales of $872M to $892M, below the estimate of $1.05B (from three analysts) and $1.237B from a year ago. The quarter’s net loss is expected to be $27M to $37M, down from $50.5M a year earlier.
Cracker Barrel Old Country Store (NASDAQ:CBRL) shares fell 8% after the business announced it would cut its dividend by roughly 80% from $1.30 in February to $0.25 in August as it invests in restaurant renovations and menu optimization.
DXC Technology (NYSE:DXC) fell over 17% despite beating estimate in FQ4 on dismal outlook. The business forecasts Q1 revenue of $3.1B to $3.15B, below the consensus of $3.30B, and adjusted EPS of $0.50 to $0.60, below the consensus of $0.77. It predicts sales of $12.67B to $12.95B in FY2025, below the average of $13.20B, and adjusted EPS of $12.5-$13, vs. $13.52.
Premarket
Gainers
Reddit’s (NYSE:RDDT) shares increased 12% after the social media network announced a deal with artificial intelligence giant OpenAI to include its content into the firm’s AI products.
Boeing (NYSE:BA) shares climbed 0.2% as shareholders vote on whether exiting CEO David Calhoun would remain on the board of the beleaguered planemaker.
Tesla’s (NASDAQ:TSLA) shares climbed 0.1% after Reuters reported that the EV powerhouse is pushing forward with plans to utilize Chinese data to support the worldwide development of its self-driving technology.
Losers
DXC Technology (NYSE:DXC) stock fell more than 23% after the information technology business provided dismal annual projections.
GameStop (NYSE:GME) stock slumped 10% after dropping 30% on Thursday as a comeback rally stalled.
Take-Two Interactive Software (NASDAQ:TTWO) shares slumped 2.6% after the company published poor annual profit projections, with the videogame publisher planning to deliver its highly anticipated GTA VI title only in 2025.
Xpeng (NYSE:XPEV) shares dipped 1.8% after the Chinese EV maker revealed ambitions to expand into Hong Kong by introducing a sports utility vehicle and a minivan.
HSBC (NYSE:HSBC) ADRs declined 0.9% after Bloomberg reported that its largest shareholder, Ping An Insurance, may be trying to reduce its holding in the British bank.
Stocks In Focus
Early trade saw Applied Materials (AMAT) shares rise over 1%. They fell in extended trading Thursday as the largest U.S. semiconductor equipment producer reported FQ2 2024 earnings. Applied Materials’ revenue was unchanged Y/Y. FQ2 revenues from Dynamic Random Access Memory rose to 32% from 11% a year earlier. The foundry, logic, and other unit contributed 65% of revenue, down from 84% a year earlier.
In the current quarter, Applied Materials (AMAT) offered revenue forecast above projections. Friday saw several Wall Street brokerages raise their stock price targets. Charts show AMAT’s performance.
After the opening bell, Copart (CPRT) stock rose slightly. The online car auction company’s FQ3 2024 profit was in line with estimates, and revenue climbed roughly 11% Y/Y to $1.13B. Jeff Liaw, CEO of Copart (CPRT), said that the Manheim Used car Value Index fell 14% in the quarter, indicating a prolonged slide in car values. “As anticipated, new and used vehicle prices have decreased somewhat steeply in recent days, while repair costs remain elevated, driving a strong and continued recovery in total loss frequency,” Liaw remarked on the results call.
Early trade saw Snowflake (SNOW) Class A shares fall roughly 2%. Bloomberg News reported Thursday that the data warehousing giant is in talks to buy Reka AI for over $1B, citing sources. Former DeepMind researchers launched Reka, an AI model startup. Reka reportedly raised $50M in a $300M financing round last June. Snowflake’s (SNOW) venture arm contributed to that fundraising.
Robinhood Markets (HOOD) Class A shares rose over 4% after normal trading began. Bank of America rare double-upgraded the stock to Buy from Underperform. The firm believes the “current entry point” into the bitcoin trading platform is better than when it rated it Underperform in 2021 after its market debut. Robinhood (HOOD) is at a reasonable value after earnings gains, according to BofA, due to increased retail engagement and organic growth.
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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.