In midday trading, Walt Disney’s stock fell 10% after reporting fiscal second-quarter results. While the company’s adjusted earnings beat estimates and Disney+ subscriber growth was strong, revenue slightly missed estimates and Disney expects a loss within its direct-to-consumer entertainment business for the quarter. Nvidia shares slipped about 1% after billionaire investor Stanley Druckenmiller announced he cut his stake in the chipmaker, citing concerns that artificial intelligence may be overhyped in the short term. Ferrari NV’s U.S.-traded shares declined nearly 5% despite beating Wall Street’s estimates for the first quarter, as the company reaffirmed previous revenue and earnings guidance for the year.
Datadog’s shares tumbled 10% after the company announced that its president, Amit Agarwal, will step down at the end of the year. While the maker of cloud applications posted better-than-expected earnings and revenue for the first quarter, deferred revenue fell short and billings were in line with expectations. Electric vehicle company Lucid Group dropped 13% after reporting a larger loss per share than expected in the first quarter. Other electric vehicle stocks like Tesla, Li Auto, and Xpeng also declined. Defense tech firm Palantir Technologies plunged nearly 14% after offering disappointing full-year guidance, despite topping revenue expectations and posting earnings in line with estimates.
UBS Group’s U.S.-traded shares jumped nearly 7% after the European bank reported first-quarter results that topped expectations. Rocket Lab shares declined nearly 4% after the company posted a revenue miss in the first quarter, with revenue coming in below expectations and the delayed launch of its Neutron rocket. Peloton’s shares rose 13% on reports that private equity firms were considering taking the company private. Hims & Hers Health, a telehealth consultation platform, gained 7% after issuing second-quarter revenue guidance that exceeded expectations.
Target’s stock added 1.3% following two bullish analyst calls, with Citi upgrading the stock to buy from neutral and UBS holding a buy rating, citing the upcoming first-quarter earnings report as a positive catalyst. Simon Property Group, a mall operator, popped 4% after posting a first-quarter revenue beat, with revenue exceeding analyst expectations. Overall, market movements in midday trading included a mix of declines and gains across various sectors, with notable moves in companies such as Walt Disney, Nvidia, Ferrari NV, Datadog, Lucid Group, Palantir Technologies, UBS Group, Rocket Lab, Peloton, Hims & Hers Health, Target, and Simon Property Group. Investors will continue to monitor these companies and market trends to assess potential investment opportunities and risks.
