Today, Stock futures were divided in premarket trading, following Adobe’s good quarterly earnings and the S&P 500’s record finish.
Top stock gainers.
Shares of Adobe (NASDAQ:ADBE) jumped 14% after providing an encouraging Q2 with a solid Q3 and FY2024 forecast. For Q3, the business estimates overall revenue of roughly $5.33B-$5.38B, slightly below the consensus of $5.4B and non-GAAP EPS between $4.50 and $4.55, vs. market expectation of $4.47. The business predicts total sales for the year in the range of $21.4B–$21.5B vs. the consensus of $21.46B and non-GAAP EPS in the range of $18–$18.20 vs. the consensus of $18.01.
Vaxart (NASDAQ:VXRT) shares advanced more than 30% after the clinical-stage biotech announced the receipt of a project contract valued at up to $453M through the Rapid Response Partnership Vehicle (RRPV). The funding will be utilized to conduct a Phase 2b comparison research comparing Vaxart’s oral COVID-19 vaccine candidate against a U.S. Food and Drug Administration-approved mRNA vaccine comparator. The financing will be supplied in two parts, with $65.7M accessible immediately and the remaining when the investigation may start and be paid throughout. The business expects an interim review of vaccination efficacy in 1Q25.
Biggest stock losers
Top stock losses
RH (NYSE:RH) shares dropped 11% following disappointing Q1 earnings, including a wider-than-expected loss. The company acknowledged the most challenging housing market in three decades and warned that monetary policy changes will continue to damage the market through 2024 and potentially 2025. For FY2024, revenue is predicted to lag demand by ~4–8 points due to the company’s comprehensive assortment makeover, with demand growth ranging from 12% to 14% and revenue growth ranging from 8% to 10%.
Rezolute (NASDAQ:RZLT) lost 18% after pricing a public offering of 11.25M shares of its common stock at $4.00 per share, with an underwriters’ option to purchase up to an additional 15% of the number of shares of its common stock and pre-funded warrants to purchase up to 3.75M shares of common stock at $3.999 per pre-funded warrant. The conclusion of the offering is expected to occur on or before June 17, 2024.
Premarket
Gainers
Adobe (NASDAQ:ADBE) stock rose 14% after the software company boosted its revenue prediction for fiscal 2024, citing more demand for its artificial intelligence-powered software.
Tesla (NASDAQ:TSLA) shares increased 1.1% after the electric vehicle manufacturer’s shareholders voted in support of a controversial $56 billion pay package for CEO Elon Musk, as well as the company’s reincorporation in Texas.
Hasbro (NASDAQ:HAS) shares jumped 1.2% after Bank of America changed its investment outlook on the toymaker to ‘buy’ from ‘neutral’, citing a lot more upside for investors to play with.
Zscaler (NASDAQ:ZS) shares jumped 1.7% after JPMorgan upgraded the cloud security company to ‘overweight’ from ‘neutral’, saying it is well positioned for the future.
Losers
RH (NYSE:RH) stock plummeted 12% after the furniture retailer disclosed a bigger-than-expected first-quarter loss and anticipated second-quarter sales that were below forecasts.
Sirius XM (NASDAQ:SIRI) stock slid 2.4% after the Nasdaq indicated the firm would be removed from the Nasdaq 100 index, and replaced with Arm Holdings (NASDAQ:ARM), which rose 0.8%.
GameStop (NYSE:GME) stock declined 1.2% after the video game retailer postponed its virtual annual shareholders’ meeting without any business being performed owing to technical issues.
Wells Fargo (NYSE:WFC) stock dipped 0.7% after the country’s third largest bank fired more than a dozen workers for suspected “simulation of keyboard activity”, an attempt to trick the firm into thinking they were working.
Stock in Focus
Tesla (TSLA) shares was among the most-actively traded before of the opening bell, jumping more than 1%. On Thursday, a regulatory filing showed that 77% of all Tesla (TSLA) shareholders voted in support of top boss Elon Musk’s historic $56B salary package. That resulted into 1.76B votes of shares in favor, 528.9M against and 20.6M abstained. Musk the previous day had already signaled that the plan would be approved. The decision on the pay package will now once again rest with the Delaware Court of Chancery. Shareholders also voted in support of Tesla’s (TSLA) redomestication to Texas.
Class A shares of Pinterest (PINS) tumbled more than 3% in pre-market trading, after Piper Sandler said it has witnessed weaker growth in traffic to Amazon (AMZN) in May. Pinterest (PINS) had announced a deal with Amazon (AMZN) back in April 2023 to bring third-party ad demand to the image sharing social network’s platform. “We’ve analyzed referral web traffic from Pinterest (PINS) directly to Amazon (AMZN), and May +83% is down from April +147% y/y and the prior ~7 months over 100% y/y,” Piper Sandler analyst Thomas Champion noted, while retaining his Overweight rating and top choice status.
Nucor (NUE) stock dropped about 3% before of market open, as the U.S. steelmaker issued current quarter earnings guidance that came in considerably below expectations. Nucor (NUE) forecasts Q2 income per share in the range of $2.20 to $2.30, compared to a consensus number of $2.96. The prediction also showed a considerable dip from earnings of $5.81/share in Q2 last year. The company said the predicted decline was principally attributable to decreased earnings of the steel mills division on the back of lower average selling prices and volumes.
U.S.-listed shares of Shopify (SHOP) gained more than 2% in pre-market trade, after Evercore ISI upgraded the Canadian e-commerce firm’s stock to Outperform from In Line. The firm feels the “recent pullback in the stock (~30% off 52wk high) has created an attractive entry point to own a best-in-class ecommerce platform business.” Evercore also stated there was a “very resilient Long Thesis” to Shopify’s (SHOP) shares, given its vast total addressable market and its “very strong competitive position.”
Must read book about investing – check hereTodayToday Today Today Today Today
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.