Several companies made headlines before the bell, with Target’s shares tumbling more than 7% after first-quarter earnings missed estimates. The decline was driven by a year-over-year sales decrease of about 3% as consumers bought fewer discretionary items. On the other hand, Analog Devices saw its shares jump 6.2% after exceeding quarterly estimates. The semiconductor manufacturing company posted adjusted earnings of $1.40 per share in its fiscal second quarter, surpassing analysts’ expectations.
Shopify, a retail software stock, rose 2.6% following a Goldman Sachs upgrade to buy from neutral. The investment bank believes that the industry leader’s shares are at an attractive entry point following a challenging year. However, Box, a cloud storage company, experienced a 2.2% dip after Morgan Stanley downgraded it to equal weight from overweight. The downgrade was due to other software names such as Docebo and Smartsheet appearing more compelling to the analysts.
Urban Outfitters, a clothing retailer, added 1.8% after beating Wall Street estimates for its fiscal first-quarter results. The company posted adjusted earnings of 69 cents per share on $1.20 billion of revenue, exceeding analysts’ expectations. PDD Holdings, the Chinese parent of discount retailer Temu, gained 7.6% after reporting a 131% increase in first-quarter revenue. Meanwhile, homebuilder Toll Brothers saw a 1% gain after announcing stronger-than-expected results in its fiscal second quarter.
Hims & Hers Health, a digital pharmacy stock, slipped roughly 3% after Citi downgraded it to neutral from buy. The bank mentioned that while the company is “doing everything above-board,” the stock has already captured most of its potential upside from an announcement about adding GLP-1s to its platform. Lululemon, an athletic apparel retailer, shed 3.7% after announcing it will implement a new integrated design structure and the departure of its chief product officer. Overall, the market saw a mix of positive and negative movements among various companies before the opening bell.
