In premarket trading, several companies made headlines with their stock movements. Tesla saw its shares jump 7% after CEO Elon Musk announced that a $56 billion pay package and a resolution to move the company’s incorporation to Texas were set to pass a shareholder vote. This news came despite initial criticisms from notable shareholders who intended to vote against the compensation plan. Broadcom also saw its shares soar nearly 14% after posting an earnings and revenue beat and announcing a 10-for-1 stock split. The chipmaker reported adjusted earnings per share for its fiscal second quarter came in at $10.96, surpassing analysts’ expectations, and revenue of $12.49 billion, higher than anticipated.
However, not all companies had positive news in premarket trading. Dave & Buster’s shares fell 10% after first-quarter sales missed expectations. The entertainment and restaurant chain reported revenue of $588 million, below the projected $621 million. Oxford Industries saw its shares tumble 4% following a weaker-than-expected earnings report. The clothing maker, known for brands like Tommy Bahama, reported adjusted earnings of $2.66 per share on $398.2 million in revenue, missing analyst estimates. Guidance for the current quarter and full year was also softer than expected by Wall Street.
Virgin Galactic was another company in the spotlight, slipping 8.5% after its board of directors approved a 1-for-20 reverse stock split, with the stock trading below $1. Kimberly-Clark, a consumer packaged goods stock, advanced 2.2% after receiving a rare double upgrade to buy from Bank of America. The firm noted that the Huggies and Kleenex maker is on the verge of structural changes. Nextera Energy Partners, on the other hand, saw its shares retreat 3.2% following a Barclays downgrade to underweight from equal weight, citing concerns about overhangs caused by convertible equity portfolio financing. Corning’s shares slipped around 1% after a Morgan Stanley downgrade to equal weight from overweight, with the analyst noting a more balanced risk-to-reward ratio following a notable rally this year.
Overall, the premarket trading for these companies showcased a mix of positive and negative movements in response to various news and announcements. While some companies like Tesla and Broadcom saw significant gains, others like Dave & Buster’s and Oxford Industries faced challenges with disappointing earnings reports. Investors closely followed these developments to assess the implications for the companies’ future performance and stock prices. The varying reactions in premarket trading highlighted the volatility and uncertainty that can accompany corporate news and events, influencing investor sentiment and market dynamics.
