An exterior view of a Walmart store on August 23, 2020 in North Bergen, New Jersey
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Check out the companies that make headlines in midday trading.
Walmart – Stocks drop about 10.5% after big box retailer reports quarterly earnings that significantly missed Wall Street’s expectations. Walmart posted adjusted first-quarter earnings of $1.30 per share on revenue of $141.57 billion. Analysts had expected a profit of $1.48 per share on revenue of $138.94 billion, according to Refinitiv consensus estimates. Walmart cites cost pressures due to rising fuel prices, higher inventory levels and redundancies.
Citigroup – Bank shares rose about 8.2% a day after regulatory filings revealed that Warren Buffett’s Berkshire Hathaway more than 55 million shares to build $2.95 billion worth of shares in the first quarter. Citi’s stock has underperformed in the financial sector over the past 12 months and is still down 15% this year.
Paramount Global – Paramount stock up nearly 14% after Berkshire Hathaway Shares Disclosure worth $2.6 billion in the media company. At the end of the quarter, the media company was Berkshire’s 18th largest shareholder.
United Airlines – Shares of this airline rose more than 7% after the Federal Aviation Administration cleared 52 Boeing 777 planes to fly again, after they are grounded because of a motor failure. These planes account for 10% of United’s capacity. United said it plans to bring the planes back gradually starting later this month.
Take-Two . interactive software – The stock is up 12.3% though light guide and missed the booking index from the video game company. Analysts are expecting a better outlook after the company closes a pending acquisition of Zynga.
JD.com – Shares of the Chinese e-commerce giant rose about 2% after this company beat sales estimates in its most recent quarter, despite seeing growth slow as the Covid-19 lockdown has weighed on consumer spending. According to Refinitiv, revenue came in at 239.7 billion yuan, up 18 percent year-on-year, compared with expectations of 236.6 billion yuan.
Tencent Music Entertainment – Shares of the Chinese online entertainment platform in the US fell more than 3%. Tencent Music posted quarterly revenue of 6.64 billion yuan, down 15% year-on-year.
AMD – Shares of semiconductor company rose 8.7% after Piper Sandler upgraded Advanced Micro Devices gained weight from neutral and said the stock could rise nearly 50% after falling this year.
Working day – Shares fell 1.8% after UBS downgraded its HR software stock to a buy-neutral rating. The company said Workdays can be hit hard during an economic downturn.
Maxar technology – Space shares fell nearly 2% after Bank of America downgraded Maxar to underperformer from neutral. The bank said it expects the satellite imaging company’s revenue and margins to be lower in the future.
Molson Coors – Beverage reserves decrease by more than 2% after one downgrade from Bernstein. The investment firm said that the recovery trade for Molson Coors was largely on track and shifted its assessment of market performance from better.
– CNBC’s Yun Li, Jesse Pound, Sarah Min, Samantha Subin, and Tanaya Macheel contributed reporting.
