Yelp Inc. on a monitor on the floor of the New York Stock Exchange (NYSE) in New York. is identified.
Michael Nagel | Bloomberg | Good pictures
Take a look at the companies making headlines in midday trading.
Yelp – Shares of the online review company rose more than 9% after activist investor TCS Capital Management picked up a stake. An open letter The company should explore strategic alternatives, including sales. TCS Capital has built a position of over 4% in Yelp, becoming one of the company’s top five shareholders. TCS said Yelp was “shockingly undervalued” and could be sold to a private equity buyer for at least $70 per share, a 120% premium.
AutoZone – Shares of the auto retailer fell more than 5% after earnings missed expectations for the fiscal third quarter. AutoZone reported revenue of $4.09 billion, falling short of the $4.12 billion consensus estimate of analysts polled by Refinitiv. Earnings of $34.12 per share topped analysts’ forecasts of $31.51. Inventory increased by 7.4% year-on-year.
Lowe’s Companies – The home improvement retailer advanced 2.8% on a first-quarter earnings report that beat analyst expectations. But the company lowered its full-year outlook.
Chevron – The San Ramon, California-based energy producer added 3.1% in midday trading. HSBC upgraded Chevron to buy from early on Tuesday, which could signal a rebound in oil prices.
Zoom Video Communications – Shares fell more than 7% following the video conferencing stock’s first-quarter report. While the company beat Wall Street expectations on both earnings and revenue per share, Zoom’s expectations for the current quarter were only in line with expectations, according to Refinitiv.
Broadcom — Broadcom shares added about 2% after Apple announced a multibillion-dollar chip deal with Broadcom. The multi-year plan stems from the iPhone maker’s commitment to pump $430 billion into the U.S. economy.
BJ’s Wholesale — Shares fell 6.4% after the wholesale club’s quarterly earnings were worse than analysts estimated by Refinitiv. Comparable club sales excluding petrol were also slightly weaker than expected.
Peloton — the connected fitness equipment company known for its indoor exercise bike — shares added 3% after unveiling a new marketing strategy to capture new customers. The brand relaunch, which comes as Peloton tries to reinvent itself, includes a new pricing structure for its digital app.
Shares of the advanced microdevices-semiconductor company rose 1.7% to hit a new 52-week high. Bank of America reiterated its buyout of the chipmaker in a Tuesday note, saying AMD is “on the brink of another big opportunity” stemming from demand for artificial intelligence.
The biotech stock rose 1.4% after Cimerix – Bird initiated research coverage with an outperform rating. The company said it was positive on a “first-in-class agent” treatment for tumors.
Lifecore Biomedical – Shares surged 60% after Lifecore announced $150 million in new financing, repayment of outstanding term loans and a new distribution agreement.
Integra Life Sciences – Shares fell 15% after the medical technology company issued weak guidance for its second quarter. The company said it expected earnings per share to be between 55 cents and 59 cents, below the previous range of 75 cents to 79 cents and the consensus estimate of 77 cents among analysts polled by FactSet. Integra said revenue should be between $372 million and $376 million, below the $396 million to $400 million range and the FactSet consensus of $398.1 million.
Health technology stocks rose 17% and 15%, respectively, following Quanterix, Innumerable Genetics – upgraded to buy from neutral at Goldman Sachs. The bank said that Quanterix has better operational efficiency than market expectations. And it said it has a different financial profile that is now written off.
Snowflake – Shares rose 2.1% ahead of the cloud computing stock’s upcoming quarterly report on Wednesday. Wells Fargo said the company’s earnings improved and reiterated its overweight rating.
CCC Intelligent Solutions — Shares of CCC Intelligent Solutions rose 4.6% following an upgrade to outperform from Evercore ISI. The company said the software services provider for the property and casualty insurance industry “has been on the ‘AI journey’ long before it became the trend du jour.”
Spotify — The music streaming service advanced 1.3% after Guggenheim bought back shares, citing strong usage trends and helping Spotify fuel a healthy growth cycle.
Regional Banks – Several regional banks rose on Tuesday. Closely followed PacWest rose 16.5%, while Comerica and Zions added 6.9% and 8.8%, respectively.
— CNBC’s Hakyung Kim, Michael Fox, Samantha Subin, Brian Evans, Yun Li, Sarah Min and Michael Bloom contributed reporting