Several companies are making headlines before the opening bell. GameStop shares fell over 20% after the company announced plans to sell 45 million common shares of its stock and reported a sales decline in the first quarter. Reddit saw a 10.5% rally after announcing a partnership with OpenAI, which will provide artificial intelligence features to Reddit while gaining access to Reddit’s data API. Take-Two Interactive Software shares dropped over 2% following an update on the timing of the new Grand Theft Auto game, now scheduled for release in the fall of 2025. Snowflake’s stock edged lower as it was reported to be in talks to acquire startup Reka AI for over $1 billion. Doximity’s shares surged nearly 18% after beating estimates in the fourth quarter and providing in-line revenue guidance for the first quarter. However, Globant SA’s stock dropped over 3% after issuing weak second-quarter earnings and revenue guidance.
Cracker Barrel Old Country Store shares tumbled nearly 15% after the company announced an 80% decrease in its dividend to support its strategic transformation plan. Applied Materials saw a 1.2% increase in its shares after reporting a beat in second-quarter earnings and roughly in-line revenue. The company posted earnings of $2.09 per share, excluding items, on revenue of $6.65 billion, leading several firms, including Goldman Sachs and Citigroup, to raise their price targets. DXC Technology shares dropped over 23% after the company issued first-quarter earnings and revenue guidance below expectations, despite beating estimates in the fourth quarter. The company expects earnings of 55 to 60 cents per share in the first quarter, compared to the FactSet consensus estimate of 76 cents, along with revenue guidance of $3.1 billion to $3.150 billion, lower than the anticipated $3.3 billion.
In other news, GameStop shares fell over 20% after the company announced plans to sell 45 million common shares of its stock and reported a sales decline in the first quarter. Reddit shares rallied 10.5% following a partnership announcement with OpenAI, with Reddit gaining access to artificial intelligence features powered by OpenAI and OpenAI gaining access to Reddit’s data API. Take-Two Interactive Software saw shares drop over 2% after an update on the timing of the new Grand Theft Auto game, now scheduled for release in the fall of 2025. Snowflake’s stock dipped slightly after reports of discussions to acquire startup Reka AI for over $1 billion. Doximity shares surged nearly 18% after beating estimates in the fourth quarter and providing in-line revenue guidance for the first quarter. Globant SA’s shares dropped over 3% after issuing weak second-quarter earnings and revenue guidance.
Cracker Barrel Old Country Store shares tumbled nearly 15% after the company announced an 80% decrease in its dividend to support its strategic transformation plan. Applied Materials saw a 1.2% increase in its shares after reporting a beat in second-quarter earnings and roughly in-line revenue. Several firms, including Goldman Sachs and Citigroup, raised their price targets on the back of the report. DXC Technology shares fell over 23% after the company issued first-quarter earnings and revenue guidance below expectations, despite beating estimates in the fourth quarter. The company expects earnings of 55 to 60 cents per share in the first quarter, compared to the FactSet consensus estimate of 76 cents, along with revenue guidance of $3.1 billion to $3.150 billion, below the anticipated $3.3 billion.
Overall, the pre-market activity for these companies shows a mix of positive and negative outcomes. GameStop and DXC Technology are facing challenges, with GameStop experiencing a drop in share prices due to planned stock sales and sales declines, while DXC Technology’s weak guidance overshadowed its fourth-quarter beat. On the other hand, Reddit and Doximity are seeing positive momentum, with Reddit’s partnership with OpenAI boosting its stock and Doximity beating estimates and providing solid revenue guidance. Snowflake and Globant SA are experiencing minor setbacks as they navigate potential acquisitions and issue weaker guidance for the upcoming quarters. The market reactions to these companies’ updates and announcements highlight the volatility and complexity of the current business environment.
