A Tesla logo on a Model S is photographed at a Tesla dealer in New York.
Lucas Jackson | Reuters
Check out the companies that are making headlines in midday trading.
Tesla – Tesla’s shares fell 3.7% after Canaccord Genuity upgraded the stock to buy, citing Tesla’s battery innovations. Canaccord also raised its 12-month price target for Tesla from $ 419 per share to $ 1,071 per share. The new target implies a rally of nearly 60% for the electric car maker.
Nuance Communications – Nuance’s share price rose 16% in midday trading after Microsoft announced it would buy the speech recognition company for $ 56 per share, up about 23% above where the stock closed on Friday. The deal, another sign that Microsoft is looking to grow through acquisitions, is valued at roughly $ 16 billion and roughly $ 19 billion including debt.
Uber — Shares of the Ride Hail Giant rose 3.1% after posting record gross bookings in March. Uber said its mobility segment, or ride-hail business, had its best month since March 2020, with an annualized execution rate of $ 30 billion. That was 9% more than a month ago.
Alibaba – The US-traded shares of the Chinese internet giant rose 9.3% after Chinese regulators fined the company $ 2.8 billion. The fine is around 4% of Alibaba’s 2019 sales. The measure is part of a broader review of Internet companies by Chinese regulators.
United Airlines – The airline’s shares slumped 3.9% after United Airlines announced it would generate $ 3.2 billion in revenue for the first quarter, down 66% from the year-ago quarter. According to FactSet, Wall Street analysts expected $ 3.35 billion.
Chipotle – The chain restaurant’s share price rose 0.6% after Raymond James appreciated the stock to outperform the market. The Wall Street firm said Chipotle’s sales over the past few weeks of the tour have fully participated in accelerating industry trends, giving stock prices a “significant upward trend”. CNBC’s Jim Cramer said the stock was still a buy even if it hit an all-time high.
Qualcomm – Chip stock fell 2.2% after Evercore ISI downgraded the company from outperformance to a downgrade. Evercore said after Qualcomm’s triple-digit run since the Apple deal, the lion’s share of the 5G smartphone upcycle will be priced into stocks. Qualcomm and Apple settled a license and patent dispute in April 2019.
Plug Power – Morgan Stanley resumed reporting on the hydrogen fuel cell company as equilibrium, dropping shares more than 8% .1. The Wall Street firm said it saw a “modest” share price for Plug Power on the upside.
– with reports from Jesse Pound, Yun Li and Tom Franck of CNBC.
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