January 24, 2023

Stocks making the biggest moves midday: Microsoft, Gap, GoDaddy, Chegg and more

Microsoft — Shares of the IT giant fell 1.9% after the company revealed intentions to reduce 10,000 jobs through March 31 in an effort to save expenses as economic uncertainty persists and growth slows. Microsoft also announced a $1.2 billion charge for lease consolidation and other actions.

Gap – Shares increased almost 1.3% after Morgan Stanley upgraded Gap to equal weight from underweight, stating that the company had “greater potential than downside” at present prices.

J.B. Hunt Transportation — The transportation stock increased roughly 5% after management stated on earnings call that they expect the freight market to revive in the second and third quarters as inventory resets. On both the top and bottom lines, the company’s fourth-quarter performance fell short of analysts’ forecasts.

Moderna — The pharmaceutical firm’s shares jumped 3.3% the next day when the business announced that its respiratory syncytial virus vaccine is effective in avoiding the disease in older persons.

Chegg – Shares plummeted 16.6% after Needham downgraded Chegg to hold from buy, citing difficulties in achieving agreement on full-year revenue growth in Chegg Services.

Mobileye – Shares of the assisted driving company rose 6.1% after Deutsche Bank began covering with a buy rating. According to the corporation, Mobileye’s technology is superior and might help it become a Tier 1 car supplier.

Oatly Group – Oatly Group shares slumped almost 4.1% after Mizuho upgraded the company to buy from neutral. According to the corporation, increasing capacity should drive growth for the plant beverage industry.

GoDaddy – Evercore ISI raised GoDaddy to outperform from in line, saying the company has a “reasonably recession-resistant business strategy.”

PNC Financial Services Group – The midsized bank’s stock dropped 6% after the company failed key Wall Street projections. PNC announced adjusted profits per share of $3.49 and net interest income of $3.68 billion for the fourth quarter. StreetAccount polled analysts, who predicted $3.95 per share and $3.74 billion in net interest income. Net income fell from the previous quarter, owing in part to a greater provision for credit losses.

YETI Holdings — After being downgraded from outperform to market perform by Cowen, shares of the lifestyle outdoor goods firm fell approximately 7%. According to the Wall Street company, e-commerce traffic trends are easing.

Hancock Whitney — Shares slumped 5.7% after the bank posted profits that were mainly in line with forecasts, but net interest income fell short.

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