Several companies were making headlines before the bell, with their stocks experiencing various movements. Wolfspeed, a semiconductor company, saw its stock fall nearly 5% following a downgrade to underperform by Mizuho. The firm cited a potential decline in pricing for silicon carbide, a semiconductor material used in electric vehicles, as a key reason for the downgrade. In addition, Mizuho mentioned lower expectations for EV production in the near future as another potential challenge for Wolfspeed.
On the other hand, Nvidia, a leading AI chip giant, saw its shares rise more than 1% after CEO Jensen Huang reported strong demand for its next-generation AI graphics processor, Blackwell. Huang stated that the company is on track to ship Blackwell in the fourth quarter, and the demand for the product is “insane.” However, telehealth company Hims & Hers Health experienced a decline of around 9% after the US Food and Drug Administration announced that the shortage of GLP-1 treatments from Eli Lilly has been resolved. This news impacted Hims & Hers Health, as they had previously developed compound versions of these drugs to capitalize on the shortages.
Another company in the spotlight was EVgo, an electric vehicle charging company, which saw its shares rise over 9% after JPMorgan upgraded the stock to overweight. Analyst Bill Peterson highlighted EVgo’s utilization rate compared to its peers and its owner-operator model as potential catalysts for future growth. Conversely, Levi Strauss, the denim maker, faced a 12% drop in its stock price after trimming its full-year revenue guidance and delivering fiscal third-quarter revenue that fell short of analysts’ expectations. The company is also considering selling its underperforming Dockers business.
Constellation Brands, a beverage company, experienced a slight increase in its stock price following better-than-expected fiscal second-quarter earnings. The company reported earnings of $4.32 per share, beating StreetAccount estimates, but revenue of $2.92 billion slightly missed expectations. Constellation Brands also reiterated its full-year earnings per share guidance. On the other hand, Stellantis, an automaker, saw its stock decline over 3% in the premarket after a downgrade to equal weight from overweight by Barclays. The analyst cited issues with US inventory and eroding market shares in the EU and US as reasons for the downgrade.
In summary, various companies were making headlines before the bell, experiencing both positive and negative movements in their stock prices. While some companies, such as Nvidia and EVgo, saw gains following positive updates and upgrades, others, like Wolfspeed and Levi Strauss, faced challenges such as downgrades and revenue concerns. The market dynamics continue to shift as companies navigate through different economic and industry conditions, impacting their stock performance. Investors will need to closely monitor these developments to make informed decisions about their portfolios in the current market environment.
