Several companies were making headlines in midday trading on the stock market. GameStop saw its shares drop 25% after announcing plans to sell up to 45 million class A common shares in an at-the-market offering. The company also reported a drop in first-quarter sales, leading to a decline in its stock price. Reddit’s stock, on the other hand, rose 12% after announcing a partnership with OpenAI, which will provide artificial intelligence features to Reddit. Take-Two Interactive saw gains of about 1% after reporting stronger-than-expected bookings in its quarterly report, despite news that the new Grand Theft Auto game will not launch until 2025.
Advanced Micro Devices saw a 2% increase in its stock price after reports that Microsoft is planning to offer AMD’s AI chips to cloud customers as an alternative to Nvidia. Snowflake, a cloud computing company, slipped 1% amid reports that it is in talks to acquire startup Reka AI for more than $1 billion. Doximity, an online networking platform, soared 18% on strong earnings and a share repurchase announcement, as it beats expectations in its fiscal fourth quarter. Globant SA, an information tech company, dropped nearly 6% on weak guidance for the current quarter, with analysts forecasting lower earnings and revenue than expected.
Cracker Barrel Old Country Store experienced a 12% drop in its stock price after cutting its dividend to 25 cents per share from $1.30 in order to support the company’s strategic plan. DXC Technology, an IT stock, dove 16% after posting weaker-than-expected earnings guidance for the current quarter, with adjusted earnings and revenue falling below analyst estimates. Tilray, a cannabis company, declined 7% after announcing plans to sell up to $250 million worth of common stock. Robinhood, the online brokerage firm, saw an 11% increase in its stock price after being double upgraded by Bank of America to buy from an underperform rating, citing heightened retail investor activity as a reason for the move.
Coinbase, the crypto platform, jumped 5.2% following a Bank of America upgrade to neutral from underperform, with the bank noting that Coinbase is in the early stages of a market reacceleration. JD.com, the Chinese e-commerce stock, advanced 2.2% after a Macquarie upgrade to outperform from neutral, with the firm suggesting that shares have likely hit the bottom after a year-long transition phase. DuPont de Nemours, the chemicals giant, added 2.3% after a Jefferies upgrade to buy from hold, with Jefferies anticipating upside potential of around 30% amid a “cyclical recovery trade.” Overall, the stock market saw a mix of gains and losses among various companies, driven by a range of factors impacting their performance.
