Today, Stock futures were divided in the early trading hours as S&P futures rose above 5,400 for the first time following the Federal Reserve’s latest interest rate decision and May CPI data that came in cooler than expected
Top stock gainers.
Tesla’s (NASDAQ:TSLA) shares soared 7% after Elon Musk declared in a social media post that both shareholder resolutions—his $56B compensation package, which had been a focus of controversy—and the company’s transfer to Texas were on pace for approval by a large margin.
Broadcom (NASDAQ:AVGO) shares rose more than 14% after the chipmaker published better-than-expected FQ2 results and outlook. The company’s board of directors also declared a 10-1 stock split, effective July 15. The business boosted its FY2024 revenue target from $50B to $51B, above the average of $50.58B. Adjusted EBITDA is anticipated to be roughly 61% of the revenue.
Top stock losses
Virgin Galactic Holdings (NYSE:SPCE) shares dropped 12% after its Board of Directors approved a 1-for-20 reverse stock split of the company’s common stock, effective on June 14, after the market closes. The primary goal is to enhance the per-share market price to fulfill the minimum bid price criterion for continuing listing on the NYSE.
Dave & Buster’s Entertainment (NASDAQ:PLAY) shares plunged over 12% owing to underperformance in Q1 results, including a 5.6% decline in comparable sales, a 12.6% decrease in adjusted EBITDA, and a 37.2% decrease in adjusted net income Y/Y.
Premarket
Gainers
Broadcom (NASDAQ:AVGO) stock rose 14% after the semiconductor group upped its annual revenue projection for its artificial intelligence-optimized chips, benefiting from the boom in enthusiasm around AI.
Tesla (NASDAQ:TSLA) shares jumped 6.8% after CEO Elon Musk stated in a social media post that shareholders are endorsing his $56 billion compensation plan and a move by the electric vehicle manufacturer to reincorporate in Texas from Delaware.
GameStop (NYSE:GME) shares climbed 3.3% ahead of the video game retailer’s annual shareholder meeting later in the day, continuing the meme stock’s roller-coaster stock-market trip.
3M (NYSE:MMM) stock increased 0.5% after the industrial conglomerate stated it would transfer roughly $2.5 billion of its U.S. pension payment liabilities and related plan assets for nearly 23,000 U.S. retirees and beneficiaries to Metropolitan Tower Life Insurance.
Losers
Dave & Buster’s Entertainment (NASDAQ:PLAY) stock plummeted 10% after the restaurant and entertainment operator reported another quarter of disappointing sales.
Virgin Galactic (NYSE:SPCE) stock tumbled over 8% ahead of the space travel company’s 1-for-20 reverse stock split, expected to go into effect on Friday.
MicroStrategy (NASDAQ:MSTR) stock declined 1.5% after the business-analytics company announced plans to raise $500 million in convertible debt.
Stock in Focus
After the close, Broadcom (AVGO) will report FQ2 2024 results. Wall Street forecasts $10.84 per share on $12.01B in revenue. Due of AI excitement, Broadcom (AVGO) stock has gone purple in 2024, like much of the semiconductor industry. AI sales and VMware accretion should boost the company’s top and bottom lines Y/Y.
Birkenstock (BIRK) fell more than 1% before the opening bell after Goldman Sachs downgraded it to Neutral from Buy. Since its October market debut, the German footwear maker’s shares has outperformed the premium peer group, leading the brokerage to believe it was highly valued. Goldman Sachs still likes the company’s brand momentum.
FedEx (FDX) stock fluctuated pre-market, closing up 1%. The parcel delivery company stated earlier in the day that it would cut 1.7K to 2K back-office and commercial workers in Europe. “We do not take these decisions lightly, but they are essential to putting FedEx (FDX) on the right path for the future,” said airline and international president and CEO Richard Smith.
Paramount Global‘s class A shares (PARAA) rose about 5% before market open after falling almost 6% the day before. Before opening bell, its class B shares (PARA) fell 3%. Shari Redstone’s National Amusements abruptly ended talks with David Ellison’s Skydance Media on Tuesday, according to multiple media reports. A convoluted $8B merger of Paramount and Skydance relied on the deal.
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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.