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Wednesday, May 29, 2024

W, IRBT, SAVE, CELH and other stocks to watch

Hey there readers! Let’s catch up on the latest buzz in the stock market with companies making headlines in midday trading.

First up, Wayfair is making big moves by announcing a 10% surge in shares after revealing plans to lay off 13% of its global workforce, including 19% of its corporate team. This restructuring initiative aims to streamline the company’s management layers and reduce costs, with an expected savings of about $280 million.

On the other hand, Hertz took a hit with a 6% drop following a Jefferies downgrade to hold from buy. The bank cited concerns about short-term profitability being impacted by electric vehicle repair costs, rising operating expenses, and vehicle depreciation.

Meanwhile, Spirit Airlines is flying high with shares surging over 20% after raising its fourth-quarter forecast. Revenue is expected to come in at the high end of the range due to strong bookings, and adjusted negative margins are anticipated to range between 12% and 13%. This positive news comes after the airline faced a stock slump of over 50% earlier in the week due to a blocked acquisition by JetBlue.

iRobot, known for its Roomba robot vacuums, faced a nearly 30% drop in shares amid investor worries about the possible collapse of its acquisition by Amazon. Reports surfaced that a European Union regulator plans to block the deal.

In the tech world, Texas Instruments saw a 3.5% increase in its semiconductor stock after being upgraded to a buy rating by UBS. The bank pointed to “cleaner comps and fundamentals” as well as the expectation that the company will see higher orders before its peers.

Semiconductor stocks in general were on the rise, with Nvidia gaining 2.6% after being named the “clear beneficiary” of Meta’s artificial intelligence infrastructure buildout by Wells Fargo. Shares of Advanced Micro Devices also saw a 3% increase as investor bullishness grew.

Moving to the insurance sector, Travelers Companies experienced a nearly 5% increase in its stock after posting fourth-quarter adjusted earnings that exceeded analysts’ expectations. Similarly, energy company Schlumberger saw a 2% boost in shares following fourth-quarter results that surpassed analysts’ estimates.

Broadcom also saw a positive uptick with a 3% increase in shares after Goldman Sachs reinstated coverage of the company with a buy rating. The bank expects strong double-digit revenue growth in Broadcom’s artificial intelligence business and a cyclical recovery in its semiconductor business.

Shifting gears to the beverage industry, Celsius Holdings faced a more than 10% slide in shares after a downgrade to neutral from buy at Bank of America. The bank cited “uncertainty to sales momentum” as a reason for the adjustment.

Lastly, State Street, a financial services stock, rose over 2% after posting fourth-quarter adjusted earnings and revenue that exceeded analyst expectations. The company also announced a new $5 billion common share repurchase program.

That’s a wrap on the midday market highlights! Stay tuned for more updates on the latest market movements.

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