In premarket trading, several companies made headlines with their stock movements. Berkshire Hathaway’s Class A shares rose 1.2% after the conglomerate reported a 39% year-over-year growth in operating profit, leading to a record cash holding of nearly $200 billion. Paramount saw a 2.4% increase in shares after initiating acquisition talks with a group led by Sony Pictures Entertainment and Apollo, which prompted Warren Buffett to reveal that he had sold the entire Berkshire stake in Paramount at a loss. Spirit Airlines fell 4% premarket due to a wider-than-expected loss in the first quarter, while Li Auto’s U.S. shares surged 6.7% on strong order data for its L6 model.
Tyson Foods experienced a 2.1% increase in shares after posting fiscal second-quarter adjusted earnings that exceeded analyst expectations, despite falling short on revenue. Starbucks shares rose 1% in response to former CEO Howard Schultz’s suggestions for improvements to the company’s U.S. operations following weaker-than-expected quarterly earnings and revenue. Conversely, Victoria’s Secret stock dropped 5% before the bell, as Morgan Stanley downgraded the company and cut its price target, citing expectations for negative EPS revisions and a challenging second half for specialty retail. EHang Holdings saw a 3.2% increase in shares following a bullish research coverage initiation from Morgan Stanley, which labeled the autonomous aircraft company as “primed for takeoff.”
United States Steel shares rose over 2% after Morgan Stanley upgraded the Pittsburgh-based steelmaker to overweight, citing internal improvements that could drive further growth regardless of the outcome of the Nippon Steel buyout deal. Coinbase stock saw a 2.4% increase after Barclays raised its price target, indicating less downside risk for shares following better-than-expected earnings. Bausch + Lomb’s U.S.-listed shares climbed 2.9% after an upgrade to overweight from equal weight at Morgan Stanley, which highlighted the company’s progress in boosting core profit margins. However, Johnson Controls experienced a 1.1% dip in share price after a UBS downgrade to neutral from buy, citing concerns about the company’s performance relative to its peers and its ability to meet its 2024 outlook.
Overall, these companies experienced a range of stock movements in premarket trading, influenced by factors such as earnings reports, acquisition talks, and analyst upgrades or downgrades. As investors continue to digest this information and monitor ongoing developments, the stock market may see further fluctuations in the coming days and weeks. It is important for investors to stay informed about these companies and the factors driving their stock movements in order to make informed decisions about their portfolios.
