In midday trading, Tesla’s shares fell by 2.8% after an internal memo revealed plans to lay off more than 10% of its global workforce. CEO Elon Musk cited the need for cost reductions and increased productivity as the company prepares for its next growth phase. Meanwhile, Goldman Sachs saw its shares climb 3.4% as the investment bank beat Wall Street’s first-quarter earnings expectations. The company reported a 28% jump in profit to $4.13 billion, thanks to a rebound in capital market activities. Analysts had predicted earnings of $8.56 per share, but Goldman posted earnings of $11.58 per share on revenue of $14.21 billion.
Logitech’s shares dropped 6.4% after being downgraded by Morgan Stanley to underweight. The analyst expressed concerns that the market was mispricing the company’s future growth potential, forecasting only 3% annual revenue growth through fiscal 2027. Salesforce also experienced a more than 5% decline in its stock price, as The Wall Street Journal reported the company’s advanced talks to acquire data-management software provider Informatica. On the other hand, Masimo’s shares rose by 1.6% after receiving an upgrade to buy from hold at Stifel, which projected a return to high-single-digit growth and margin expansion for the health technology company.
Reddit’s shares dropped over 5% following Wall Street firms initiating coverage of the stock after its recent public debut. Morgan Stanley rated the social media platform at equal weight, stating that shares are already trading at fair value. JPMorgan and Goldman Sachs each gave Reddit a neutral rating, while Deutsche Bank called it a buy and Raymond James labeled it a strong buy. In a different sector, Medical Properties Trust saw its shares jump nearly 20% after announcing the sale of majority interests in five Utah hospitals to a new joint venture for $886 million.
Trump Media & Technology Group, the company behind the Truth Social app, witnessed a plunge of over 15% in its shares after filing to issue up to 21.5 million shares. Since its trading debut in March, the company’s share price has fallen more than 62%. However, Coupang, a South Korea-based e-commerce company, rose by 3.6% following an upgrade to buy from neutral at Citi. The bank believes there is potential for Coupang’s margins to expand as it raises subscription fees without significant pushback from customers due to its strong delivery service.
Snap One’s shares surged by 30% after announcing its acquisition by Resideo Technologies, a home automation company, in a deal worth about $1.4 billion, or $10.75 per share in cash. Resideo, on the other hand, fell by 3.6% following the news. Charles Schwab, an online brokerage and money manager, saw its shares rise by 2.8% after posting mixed first-quarter results. The company reported earnings of 74 cents per share, in line with estimates, and revenue of $4.74 billion, slightly higher than analysts had forecasted.
Overall, the midday trading session saw a mix of companies experiencing both gains and losses. While some companies like Goldman Sachs and Masimo saw their shares rise due to positive news and analyst upgrades, others like Logitech and Salesforce experienced declines following downgrades and acquisition talks. The market remains dynamic with different stocks reacting differently to various announcements and developments within the companies. Investors will continue to closely monitor these companies and their performance in the coming days.
