GameStop shares surged over 37% in premarket trading after a post by “Roaring Kitty” on social media platform X, the first post since 2021. Arm Holdings saw a 3.4% increase in shares following reports that the chip company is planning to launch its first artificial intelligence chips next year. Nvidia shares rose about 1% after Jefferies increased its price target, predicting a 34% upside. Intel also saw a 1.1% increase in shares after news of potential talks with Apollo Global Management for an $11 billion deal to build a factory in Ireland. However, Kenvue shares dropped nearly 2% after Johnson & Johnson announced it would be selling its stake in the company. Squarespace shares jumped over 12% after announcing a $6.9 billion deal to go private with private equity firm Permira at $44 per share, a 15.2% premium from Friday’s close.
Penn Entertainment shares declined 2.3% after being downgraded by Bank of America to neutral from buy, citing concerns about the company’s balance sheet deterioration. Airline stocks, including United, Delta, and American, increased 0.6% after receiving buy ratings from HSBC. Delta was highlighted as the preferred stock in the sector, with HSBC predicting support from demand for international travel and a rebound in corporate travel. SolarEdge shares pulled back 0.9% after Susquehanna downgraded them to neutral from positive following wider-than-expected first-quarter losses and weak revenue guidance. Incyte, a biopharmaceutical company, saw a more than 5% increase after approving a $2 billion share repurchase program.
In summary, various companies saw movement in their stock prices before the bell, driven by a range of factors including social media posts, reports of new product developments, analyst recommendations, and company announcements. GameStop, Arm Holdings, Nvidia, and Intel all saw increases in their share prices, while Kenvue and SolarEdge experienced declines. Squarespace announced a significant deal to go private, leading to a sharp increase in its share price. Meanwhile, Penn Entertainment faced a downgrade from Bank of America, impacting its stock performance. Airline stocks received positive ratings from HSBC, with Delta being singled out as a top pick in the sector. Incyte’s approval of a share repurchase program also contributed to its stock price increase. Overall, the stock market saw a mix of gains and losses across various industries before the market opened.
