Vlad Tenev, CEO and co-founder of Robinhood Markets, Inc., appeared on a screen during his company’s IPO on July 29, 2021, at the Nasdaq Market site in Times Square, New York City, USA.
Brendon McDermide | Reuters
Check out the companies that made headlines in the midday transaction.
Shares of the stock-trading app have fallen nearly 8.5% since Robinhood – Morgan Stanley began coverage of the company with an equal-weight rating. The Wall Street firm says Robinhood could be Charles Schwab of the young population because of its strong hold on Millennium and Generation Z. However, Robinhood needs to expand its product offerings if it wants to retain its appeal, analysts say.
Lululemon – Shares rose more than 9.6% after the company announced a $ 1 billion stock buyback program. The athletic apparel company posted earnings per share that was better than expected, but the company fell short of Wall Street revenue estimates. Lululemon also issued first-quarter and full-year guidelines, exceeding refinancing expectations.
BioNTech – BioNTech’s stock rose 1.3% after reporting expected revenue and earnings for the drug manufacturer quarterly and reiterating previous vaccine revenue guidelines for the year.
Bottom five – Shares of the discount retailer fell 6.5% after reporting its weak earnings. Five-under-same-store sales reported 3.4%, well below the 3.6% estimate. According to the refineries, the revenue was one cent higher than forecast but missed the revenue estimate.
RH – Upholstery retailer shares fell more than 13% after the company reported a revenue miss for its most recent quarter. RH brings in $ 902.7 million, compared to the $ 931.8 million estimate. It has announced three for a stock split that will take place in the spring.
Chewy – Shares of Chewy fell more than 16% on Wednesday after a fourth-quarter report missed expectations. The pet-centric e-commerce company reported a loss of 15 cents per share on its 2.39 billion earnings. Analysts surveyed by Refinitiv expect a loss of 8 cents per share on 2.42 billion in revenue. Chewy’s Forward Revenue Guide also fell short of expectations.
Shares of home decor and furniture companies fell more than 6% as wafer-loop capital stocks were downgraded from “hold” to “sell”. Loop further indicated that it expects a negative impact between the Fed’s austerity and the end of stimulus from the epidemic.
Pearson – Pearson’s stock fell nearly 6% after news broke that private equity firm Apollo had failed to reach an agreement with an educational publisher about a possible takeover bid. Apollo has also indicated that it has no plans to make an offer to the company.
Oil stocks – Oil stocks rose on Wednesday on higher crude prices, as seen in recent weeks. ConocoPhillips, Occidental Petroleum and Philips 66 rose 0.7%, about 1% and 4.7%, respectively.
Freshpet – Freshpet stock rose 3.3% after upgrading to buy from Goldman Sachs Neutral as demand for fresh pet food continues to rise. The bank has raised its price target on the company from $ 111 to $ 136 per share.
Rivian – Automaker shares fell 3.4% after popping 2% in midday trading. On Wednesday, RBC analysts reiterated its outperformance rating after expressing confidence that the production ramp of Rivian is improving. The company’s stock price crateded about 47% year to date.
Procter & Gamble – Shares of Procter & Gamble have plunged nearly 1% after the JPMorgan company was weighed down by excess weight amid inflationary pressures. Banks have blamed rising costs and FX headwinds for the downgrade.
– CNBC’s Maggie Fitzgerald, Jesse Pound, Hannah Miao, Tanaya Mitchell and Sarah Minn contributed to the reporting.