Goldman Sachs started off the day on a positive note with its shares jumping 3.3% in premarket trading. The company managed to beat Wall Street’s first-quarter earnings expectations, posting earnings of $11.58 per share on revenue of $14.21 billion. This success was largely fueled by its trading and investment banking businesses, leaving analysts pleasantly surprised.
On the flip side, shares of Logitech pulled back roughly 2% after Morgan Stanley downgraded the computer peripherals stock to underweight. Analyst Erik Woodring believes that the market is “mis-pricing” Logitech’s outlook, predicting only 3% annual revenue growth through fiscal year 2027. This downgrade had a negative impact on the stock’s performance in the premarket.
In contrast, the health tech stock Masimo rose more than 2% following an upgrade to buy from hold at Stifel. Analyst Rick Wise expressed optimism about the company’s future, citing potential for further share price appreciation. Wise pointed to the bank’s business improvement and gross margin expansion opportunities as catalysts for Masimo’s upward trajectory.
Shares of Salesforce took a hit, sliding nearly 3% in premarket trading. Reports from the Wall Street Journal and Reuters indicated that the software company is in advanced talks to acquire Informatica, a data management firm. This news sent ripples through the market, impacting Salesforce’s stock performance in the early hours of trading.
On a positive note, Medical Properties Trust saw its shares soar 14% after announcing the sale of its majority interests in five Utah hospitals to a new joint venture. The deal, valued at $886 million, garnered investor interest and contributed to the significant increase in the company’s stock price.
The South Korea-based e-commerce company Coupang experienced a 2% climb following an upgrade to buy from neutral at Citi. The bank highlighted expectations for Coupang’s margins to expand as the firm increases its subscription fees. Citi anticipated minimal customer pushback due to the company’s strong delivery service, further boosting investor confidence.
Aerospace and defense stock Lockheed Martin gained nearly 2% after receiving an upgrade to overweight at JPMorgan. Despite underperforming earlier in the year, the company is expected to see a better outlook moving forward. JPMorgan cited potential supplemental funding due to overseas geopolitical events as a driving factor behind this positive forecast.
Shares of technology giant Cisco Systems added 2% following an upgrade to buy from neutral at Bank of America. Analyst Tal Liani highlighted expected growth in the security and networking categories, as well as benefits from Cisco’s recent acquisition of Splunk. This upgrade bolstered investor confidence in the company’s future prospects.
Beauty products company Coty saw its shares move 1.3% higher after Canaccord Genuity initiated coverage with a buy rating. The firm emphasized Coty’s significant growth opportunities and strong brands as key factors driving consumer interest. This positive analysis contributed to the uptick in the company’s stock price.
Online brokerage Charles Schwab experienced a 1% decline following mixed first-quarter results. While the company matched earnings estimates at 74 cents per share, revenue slightly exceeded forecasts at $4.74 billion. This mixed performance led to a slight drop in the stock’s value in premarket trading.
The provider of smart living products, Snap One, saw its shares surge 30% after announcing its acquisition by Resideo Technologies, a home automation company. The deal, valued at $1.4 billion including net debt, sent both companies’ stocks in opposite directions. Snap One soared while Resideo’s shares also jumped 5% in response to the news.
In contrast, shares of electric vehicle maker Tesla slid 1% after an internal memo revealed plans to lay off more than 10% of its global workforce. CEO Elon Musk emphasized the importance of cost reductions and increased productivity as the company prepares for its next phase of growth. This news had a minor negative impact on Tesla’s stock performance in premarket trading.
The premarket stock updates showcased a mix of positive and negative developments across various companies. Investors reacted to earnings reports, analyst upgrades and downgrades, as well as acquisition news, influencing stock prices in early trading hours. As the market continues to digest this information, it remains to be seen how these companies will perform throughout the trading day.