GameStop experienced a 1.1% dip in its stock after Keith Gill, also known as “Roaring Kitty,” increased his ownership in the company. Gill appears to be holding 9.001 million GameStop shares and over $6 million in cash, according to a screenshot he posted on Reddit. On the other hand, Adobe saw a 14.2% increase in its stock after posting better-than-expected earnings and revenue. The software company reported higher new annualized Digital Media revenue, including Creative Cloud subscriptions, than analysts had predicted and also raised its full-year guidance. JPMorgan upgraded Adobe shares to overweight from neutral, stating that the company is poised for “smoother sailing ahead” following a strong quarterly performance.
Hasbro, a toy company, received an upgrade from Bank of America to buy from neutral, resulting in a 1.7% increase in its stock price. The firm believes that Hasbro’s digital gaming strategy could drive an earnings rebound in 2024 and 2025. In contrast, high-end retailer RH saw its stock plummet by 12.3% after reporting a wider loss per share in the first quarter than what Wall Street had expected. Despite the disappointing loss per share, RH exceeded revenue expectations, reporting $727 million compared to the estimated $725 million. Boeing’s stock dipped over 1% following reports that the U.S. Federal Aviation Administration has opened an investigation into counterfeit titanium used in some recently manufactured planes. The aircraft manufacturer is also under investigation for a late May incident involving a potentially dangerous “Dutch roll” movement on a Boeing 737 flight.
ZScaler, a cloud security stock, saw a 2% increase in its stock price after receiving an upgrade from JPMorgan to overweight from neutral. The bank stated that Zscaler is a “best-of-breed Zero Trust Network Security vendor” and is currently trading at a discount. Overall, the companies making headlines before the bell experienced a mix of positive and negative movements in their stock prices. While some, such as Adobe and Hasbro, saw significant increases due to positive earnings and upgrades, others like RH and Boeing faced challenges, including wider losses and investigations by regulatory authorities. Investors will continue to monitor these companies as they navigate the ever-changing market conditions.
