In today’s premarket trading, several companies have been making headlines. Intel saw its shares drop more than 4% after revealing a growing operating loss in its semiconductor manufacturing business. The company reported an operating loss of $7 billion in 2023, compared to $5.2 billion the previous year. Similarly, Tesla’s stock slipped roughly 1% following price target cuts from Guggenheim and Deutsche Bank, which came after the electric vehicle maker reported weaker-than-expected first-quarter delivery numbers. Paramount Global, on the other hand, saw a 2.5% increase in shares after reports suggested the company could enter into exclusive sale discussions with media company Skydance.
Meanwhile, Dave & Buster’s experienced a 5% jump in shares after increasing its share repurchase authorization by $100 million, bringing the total available share repurchase authorization to $200 million. However, the company did report weaker-than-expected fourth-quarter earnings and revenue. Cal-Maine Foods also saw a positive response from investors, with a 7% increase in shares after reporting earnings per share of $3 and $703 million in revenue for the latest quarter. The company noted that market prices moved higher due to the impact of highly pathogenic avian influenza (HPAI) and normal seasonal fluctuations, along with a 3% increase in sales volumes.
On the other hand, Wolfspeed, a chipmaker, lost 2% after Wells Fargo downgraded the stock to equal weight from overweight. The downgrade cited Tesla exposure as a drag on growth, and the price target on Wolfspeed was cut to $30 per share from $55. Ally Financial also experienced a 2% slip in shares after being downgraded to underweight from neutral at Morgan Stanley. The lender stock had seen a significant increase of more than 50% since early October, with limited upside potential based on the current valuation according to analyst Richard Shane.
In conclusion, the premarket trading activity of these companies reflects a mix of positive and negative movements. While some companies saw an increase in shares following positive earnings reports and announcements, others faced challenges such as operating losses or downgrades from analysts. Investors will continue to monitor these developments closely as they evaluate the potential impact on the companies’ stock performance in the coming days.
