The signage can be seen ahead of Chewy’s initial public offering on the New York Stock Exchange on June 14, 2019.
Andrew Kelly | Reuters
Check out the companies that are making the headlines in midday trading.
Snowflake – The cloud computing company’s stocks fell nearly 4%. The company presented its financial targets at its Investor Day meeting Thursday of $ 10 billion in annual product sales by 2029, compared to $ 554 million in the fiscal year that ended in January.
Vertex Pharmaceuticals – The pharmaceutical company’s shares fell over 10% in midday trading after it announced Thursday it would stop developing an experimental drug after it was shown not to be effective against a rare genetic disease called AAT deficiency would. Vertex said its drug increases the levels of deficient protein, but not enough to provide material improvements in health.
Chewy – The e-commerce pet company’s shares fell more than 5%, despite making an adjusted 9 cents per share last quarter, compared to consensus forecasts for a 3 cents per share loss. Chewy, which reported profits late Thursday, also beat sales estimates and gave an optimistic sales outlook. However, the company warned of labor shortages and supply chain disruptions.
Dave & Buster’s – Dave & Buster’s shares fell about 2% at noon after trading higher prior to trading. On Thursday, the company reported earnings of 40 cents per share for the first quarter, surprising analysts who expected a loss of 16 cents per share. Dave & Buster’s also posted first-quarter revenue that exceeded Wall Street analysts’ expectations.
Biogen – Biotech stock fell more than 3% despite the stock upgrading to outperform Bernstein in the market. Three members of a key advisory board to the Food and Drug Administration resigned after the agency approved Biogen’s new Alzheimer’s drug. Biogen stock has still risen sharply since the drug was approved on Monday.
Zoom Video – The video messaging company’s shares rose roughly 4% after RBC assumed coverage of Zoom was with an outperformance rating while the stock was named a top pick. “The future of work is likely to be hybrid, and we believe Zoom will be a critical component in making that future possible,” the company wrote in a message to customers. RBC has a target price of $ 450 on the stock, which represents a rally of about 30% from Thursday’s close.
Reddit Favorites – Stocks popular with retail investors who attend Reddit’s WallStreetBets forum have been volatile in midday trading after massive rallies in recent weeks. AMC Entertainment shares traded more than 3% higher, while Clover Health Investments shares rose 5%. Meanwhile, GameStop shares were down more than 2%, ContextLogic shares down more than 5%, and Clean Energy Fuels shares down nearly 2.5%.
– CNBC’s Pippa Stevens, Yun Li, Maggie Fitzgerald, Jesse Pound and Tom Franck contributed to the coverage.
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