Several companies were making headlines before the bell, with Microsoft increasing its quarterly dividend by 10.7% to 83 cents per share, leading to a 2% increase in their stock price. Additionally, the tech giant approved a new $60 billion share repurchase program. SolarEdge Technologies saw a drop of over 6% as Jefferies downgraded the stock to underperform due to rising domestic competition and high inventory levels overseas. Intel’s stock soared by 7% after announcing the creation of a separate entity for its foundry business, allowing it to have its own board and raise outside funding. Dell Technologies gained 2% following an outperform rating initiation by Mizuho Securities, citing the company as a market leader with a robust supply chain and growth in artificial intelligence servers.
Shopify experienced a 2.6% increase in its stock price after Redburn Atlantic upgraded the e-commerce company to buy from neutral, predicting continued market share gains with the expected explosive growth of the U.S. social e-commerce market. Flutter Entertainment saw a slight increase in its shares after announcing the acquisition of Playtech Plc’s Italian gambling business, Snaitech S.p.A., for €2.3 billion, or $2.56 billion in cash. AppLovin, a mobile software company, rose over 2% following an upgrade by UBS to buy from neutral, highlighting the company’s execution in the gaming realm and the potential for upside in the e-commerce total addressable market. Gannett, the newspaper company, received an upgrade from Citi to neutral from sell, leading to a 4% increase in their shares. Citi noted Gannett’s progress in slowing the rate of topline declines, which may result in flattish revenue growth in the coming quarters and potential multiple expansion.
Overall, the market response to these companies varied, with some seeing stock price increases due to positive developments such as dividend increases, new business structures, and market share gains. However, others experienced stock price declines following downgrades or due to factors like rising competition and high inventory levels. It is clear that investors are closely monitoring these companies for their performance and strategic moves, as they navigate through a constantly evolving market landscape. The upgraded outlook for some companies, based on factors like strong supply chains, growth potential in specific segments, and acquisition strategies, highlights the importance of adaptability and innovation in staying competitive in the ever-changing business environment. It will be interesting to see how these companies continue to navigate challenges and capitalize on opportunities in the future.
