In midday trading, Adobe saw a surge of 14.5% following stronger-than-expected quarterly results. The software company posted adjusted earnings of $4.48 per share on $5.31 billion in revenue and raised its full-year guidance. JPMorgan upgraded Adobe shares to overweight from neutral, signaling positive sentiment towards the stock. On the other hand, luxury retailer RH plummeted 17% after reporting a wider loss per share in the first quarter than anticipated. Despite this, RH recorded $727 million in revenue, above analyst estimates of $725 million.
Hasbro’s shares jumped 6% after an upgrade from Bank of America to buy from neutral, citing the company’s digital gaming strategy as a potential driver of an earnings rebound in 2024 and 2025. Zscaler also saw its shares rise by 1.8% after being upgraded to overweight from neutral by JPMorgan, which highlighted the cloud security company as a best-of-breed Zero Trust Network Security vendor. In contrast, Boeing shares slipped 1.9% amid news that the Federal Aviation Administration is investigating allegations of counterfeit titanium being used in planes by Boeing and Airbus, as reported by The New York Times.
GameStop shares declined over 1% after meme stock leader Keith Gill appeared to increase his GameStop stake to more than nine million shares. Meanwhile, Stellantis shares fell more than 4% after its CEO acknowledged “arrogant” mistakes in the U.S., contributing to sales declines and inventory issues. Shopify’s stock rose around 4.6% following an upgrade to outperform from in line by Evercore ISI, citing a resilient long-term thesis for the e-commerce company due to its large addressable market. Dell Technologies closed slightly lower after CEO Michael Dell disclosed the sale of 5.7 million shares.
Overall, the midday trading session saw a mix of positive and negative movements in various stocks. Adobe’s strong quarterly results and upgraded outlook contributed to a significant surge in its stock price, while RH’s wider-than-expected loss per share led to a sharp decline. Hasbro, Zscaler, and Shopify all experienced positive momentum following upgrades from major financial institutions, while Boeing and Stellantis faced challenges with investigations and internal issues impacting their stock performance. GameStop’s stock movement was influenced by changes in its stakeholder ownership, indicating ongoing volatility in the market.
