Chewy, Biogen, Snowflake and extra
The signage can be seen ahead of Chewy’s initial public offering on the New York Stock Exchange on June 14, 2019.
Andrew Kelly | Reuters
Check out the companies that are making the headlines in midday trading.
Snowflake – The cloud computing company’s shares fell 3.3%. The company presented its financial targets at its Investor Day meeting on Thursday for annual product sales of $ 10 billion by 2029, compared to $ 554 million in the fiscal year that ended in January.
Vertex Pharmaceuticals – The pharmaceutical company’s shares fell about 11% after it announced Thursday it would stop developing an experimental drug after it was shown not to be effective against a rare genetic disease called AAT deficiency. Vertex said its drug increases the levels of deficient protein, but not enough to provide material improvements in health.
Chewy – The e-commerce pet company’s shares fell nearly 6%, despite making an adjusted 9 cents per share last quarter, compared to consensus predictions for a 3 cents per share loss. Chewy, which reported profits late Thursday, also saw sales estimates beat and gave an optimistic sales outlook. However, the company warned of labor shortages and supply chain disruptions.
Dave & Buster’s – Dave & Buster’s shares fell 2.7% after trading early. On Thursday, the company reported earnings of 40 cents per share for the first quarter, surprising analysts who were expecting a 16 cents per share loss. Dave & Buster’s also posted first-quarter revenue that exceeded Wall Street analysts’ expectations.
Biogen – Biotech stock fell 4.4% despite the stock upgrading to outperform Bernstein in the market. Three members of a key advisory board to the Food and Drug Administration resigned after the agency approved Biogen’s new Alzheimer’s drug. Biogen’s stock has still risen sharply since the drug was approved on Monday.
Zoom Video – The video messaging company’s shares rose 5.7% after RBC assumed coverage of Zoom was with an outperformance rating while the stock was named a top pick. “The future of work is likely to be hybrid and we believe Zoom will be a critical component in making that future possible,” the company wrote in a message to customers. RBC has a target price of $ 450 on the stock, which represents a rally of about 30% from Thursday’s close of trading.
Reddit Favorites – Stocks popular with retail investors who attend Reddit’s WallStreetBets forum have been volatile in midday trading after massive rallies in recent weeks. AMC Entertainment shares traded nearly 15.4% higher, while Clover Health Investments shares rose 4.8%, GameStop shares rose 5.8%, and Bed Bath & Beyond rose 1.2%. Meanwhile, ContextLogic’s shares were down 6.4% and Clean Energy Fuels was down 1.7%.
– CNBC’s Pippa Stevens, Yun Li, Maggie Fitzgerald, Jesse Pound and Tom Franck contributed to the coverage.
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