Vlad Tenev, CEO and co-founder Robinhood Markets, Inc., is displayed on a screen during his company’s IPO at the Nasdaq Market site in Times Square in New York City, U.S., July 29, 2021.
Check out the companies making headlines in midday trading.
Robinhood — Shares of the stock-trading app fell about 8.5% after Morgan Stanley initiated coverage of the company with an equal-weight rating. The Wall Street firm said Robinhood could be the younger population's Charles Schwab as it has a firm grip over millennials and Generation Z. However, Robinhood will need to expand its product offerings if it wants to retain its appeal, the analyst said.
Lululemon - Shares rose more than 9.6% after the company announced a $1 billion stock buyback program. The athletic apparel company posted per-share earnings that were better than expected, but the company fell short of Wall Street's revenue estimates. Lululemon also issued first-quarter and full-year guidance higher than the Refinitiv consensus expectations.
BioNTech — BioNTech's stock rose 1.3% after the drugmaker reported better-than-expected revenue and earnings for the quarter and reiterated previous vaccine revenue guidance for the year.
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Five Below — Shares of the discount retailer fell 6.5% following its lackluster earnings report. Five Below reported same-store sales of 3.4%, below estimates of 3.6%. Earnings came in one cent higher than forecasts but revenue missed estimates, according to Refinitiv.
RH — The home-furnishings retailer's shares declined by more than 13% after the company reported a revenue miss for its most recent quarter. RH brought in $902.7 million, compared with estimates of $931.8 million. It also announced a three-for-one stock split that will take place in the spring.
Chewy — Shares of Chewy dropped more than 16% on Wednesday after a fourth-quarter report that missed expectations. The pet-focused e-commerce company reported a loss of 15 cents per share on $2.39 billion in revenue. Analysts surveyed by Refinitiv were expecting a loss of 8 cents per share on $2.42 billion in revenue. Chewy's forward revenue guidance also came in below estimates.
Money Report
Wayfair — Shares of the home decor and furniture company dipped more than 6% as Loop Capital downgraded the stock from "hold" to "sell." Loop also indicated it expects a negative impact amid Fed tightening and the end of stimulus from the pandemic.
Pearson — Pearson's stock dipped nearly 6% following news that private equity firm Apollo could not reach an agreement with the educational publisher about a possible takeover bid. Apollo also indicated it does not plan to make an offer on the company.
Oil stocks — Oil stocks rose on Wednesday as crude prices, which have seesawed in recent weeks, edged higher. ConocoPhillips, Occidental Petroleum and Phillips 66 gained 0.7%, about 1% and 4.7%, respectively
Freshpet — Freshpet's stock gained 3.3% after Goldman Sachs upgraded the stock to buy from neutral as demand for fresh pet food continues to grow. The bank upped its price target on the company to $136 per share from $111.
Rivian — Shares of the automaker fell 3.4% after popping 2% in midday trading. On Wednesday, RBC analysts reiterated its outperform rating after expressing confidence that Rivian's production ramp is improving. The company's stock price cratered nearly 47% year to date.
Procter & Gamble — Shares of Procter & Gamble inched nearly 1% lower after JPMorgan downgraded the company to neutral from overweight amid inflationary pressures. The bank attributed rising costs and FX headwinds as the reason for the downgrade.
— CNBC's Maggie Fitzgerald, Jesse Pound, Hannah Miao, Tanaya Macheel and Sarah Min contributed reporting.
