Tesla, Nio, Airbnb, Disney & extra
Check out the companies that are making headlines in midday trading.
Snowflake – The data warehousing software maker’s shares fell 5.2% after Deutsche Bank downgraded the stock by a hold rating. “The pent-up demand for high-multiple names like Snowflake may be limited as we close 2020 and investors try to protect their year,” the company wrote in a statement to clients. Deutsche Bank’s target of $ 335 is roughly 10% below its stock’s closing price on Thursday.
Nio – US-listed stocks of the Shanghai-based electric vehicle maker fell 7.2% after Nio announced it would sell up to 69 million new shares. Deutsche Bank estimates the new stock offering will raise more than $ 2.5 billion. Earlier this week, Tesla announced that it would raise $ 5 billion through a new share offering.
SolarEdge Technologies – The renewable energy company’s shares rose 6.6% after Piper Sandler initiated an overweight rating covering the stock. The company said it was “a diversified powerhouse that invests in long-term growth”. Piper’s target of $ 325 is about 19% above where the stock closed on Thursday.
Airbnb – Airbnb shares were down 3.8% on Friday, a day after they more than doubled on the company’s first day of trading. Airbnb opened Thursday at $ 146 per share, well above its IPO price of $ 68 per share. The pop raised the home sharing company’s market cap to around $ 86.5 billion.
Tesla – The electric vehicle maker’s shares fell 2.7% after a Jefferies downgrade. “We do not believe that Tesla can dominate the industry because of its size, structure and politics,” said the company on Thursday evening in a message to customers. However, Jefferies raised its 12-month target for the stock from $ 500 to $ 650.
Disney – The media giant’s shares rose 13.6% after the company announced that its streaming service Disney + could reach between 230 and 260 million subscribers by 2024. The company also said its streaming business could be profitable by 2024.
Qualcomm – The chipmaker’s shares fell 7.4% after Bloomberg News reported that Apple is starting to manufacture its own cellular modem for future devices. Apple’s drive to independently manufacture its own modem would replace Qualcomm components.
UPS – The delivery and logistics company’s shares rose 2.5% after Deutsche Bank called the stock a catalyst call buy idea. The company said in a statement to customers that it expects a “substantial” blow to UPS fourth quarter results and that the vaccine distribution would be positive for the company.
Vail Resorts – Vacation resorts shares fell 4.6% Friday after the company reported weaker-than-expected results for the first quarter of its fiscal year. Vail posted revenue of $ 131.8 million for the quarter, down approximately 50% from the same period last year. Analysts surveyed by FactSet expected sales of $ 158.4 million. Vail gave no guidance, citing the uncertainty associated with the pandemic.
Lululemon – Lululemon shares fell 6.7% despite the sportswear company delivering better-than-expected quarterly results. Lululemon earned $ 1.16 per share in the third quarter, compared to the 88 cents expected by analysts surveyed by Refinitiv. The company’s sales were also above estimates. However, Lululemon declined to offer guidance for full 2020 due to the uncertainty surrounding the pandemic. The stock has gained more than 50% this year.
American Airlines – The airline’s shares fell 5.2% after Deutsche Bank downgraded its sector rating to hold. United and Delta Air Lines each fell more than 2%. The company said these stocks are “fairly valued” after their “record rally” despite maintaining their bullish long-term view.
– CNBC’s Yun Li, Maggie Fitzgerald and Jesse Pound contributed to the coverage.
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