Several companies were making headlines in premarket trading, with Berkshire Hathaway’s Class A shares trading up 1.2% after the conglomerate reported a 39% year-over-year growth in operating profit. The Warren Buffett-led company also saw its cash holdings rise to record levels, nearing $200 billion. Paramount shares rose 2.4% amid reports of formal acquisition negotiations with a group led by Sony Pictures Entertainment and Apollo, although it was revealed that Warren Buffett had sold the entire Berkshire stake in Paramount at a loss. Spirit Airlines fell 4% premarket following a wider-than-expected loss in the first quarter and a lower-than-expected revenue forecast for the second quarter.
Li Auto, a Chinese electric vehicle maker, saw its U.S. shares jump 6.7% on solid order data for its L6 model, which began deliveries last month. Tyson Foods shares gained 2.1% after posting fiscal second-quarter adjusted earnings of 62 cents per share, surpassing analyst expectations, although revenue fell slightly short. Starbucks shares rose 1% after former CEO Howard Schultz posted on LinkedIn advising the coffee chain to improve its U.S. operations. However, Starbucks had previously issued weaker-than-expected quarterly earnings and revenue.
Victoria’s Secret saw its stock drop 5% before the bell after Morgan Stanley downgraded it to underweight and reduced its price target, citing expectations for negative earnings-per-share revisions and a challenging second half for specialty retail. On the other hand, EHang Holdings, an autonomous aircraft stock, rose 3.2% following a bullish research coverage initiation from Morgan Stanley, which rated the company as “primed for takeoff” due to growing regulatory and governmental support in China. United States Steel also saw a 2% increase in its shares after being upgraded to overweight by Morgan Stanley, which stated that the stock had potential for growth despite uncertainties surrounding a potential buyout deal.
Coinbase, a crypto stock, rose 2.4% after Barclays increased its price target, suggesting less downside risk for shares. This came after Coinbase reported stronger-than-expected earnings. Bausch + Lomb, a Canadian eye health stock, saw its U.S. listed shares climb 2.9% following an upgrade to overweight by Morgan Stanley, which highlighted the company’s progress in boosting core profit margins. Johnson Controls, a building technology stock, dipped 1.1% after a UBS downgrade to neutral from buy, citing concerns about the company lagging behind peers and facing challenges in meeting its 2024 outlook.
