Several companies were making headlines in premarket trading, including Tesla, Paramount, Domino’s Pizza, Southwest Airlines, Apple, Lululemon, SoFi, and AMC Entertainment. Tesla’s stock skyrocketed by over 10% after local Chinese authorities removed restrictions on its cars, raising expectations for the availability of Tesla’s driver-assistance software Full Self-Driving in the country. Paramount saw its shares climb more than 5% amid reports that its board is preparing to fire CEO Bob Bakish, with earnings to be reported after the bell. Domino’s Pizza shares jumped by over 5% after reporting better-than-expected first-quarter earnings, with U.S. same-store sales growth increasing year over year.
Southwest Airlines experienced a 1.2% dip in its stock after being downgraded by Jefferies to underperform, following a first-quarter revenue miss. Apple’s shares rose by more than 2% after being upgraded by Bernstein to outperform, with a recommendation to “buy the fear” as concerns about weakness in China may be overdone. Lululemon’s shares slipped by 1.6% following a downgrade at Barclays, citing shifting consumer spending trends and increased competition. SoFi saw its shares rise by more than 2% after posting first-quarter earnings that exceeded analysts’ estimates, with earnings of 2 cents per share on revenue of $581 million.
AMC Entertainment’s shares fell by more than 1% after preannouncing a first-quarter loss of 62 cents per share, which was lower than FactSet estimates of 79 cents per share. The company also noted that box office performance in the second quarter is expected to remain under pressure due to last year’s strikes. Overall, these companies reflected a mix of positive and negative news in premarket trading, influenced by various factors such as earnings reports, analyst recommendations, and market trends. Investors will be closely monitoring these developments to gauge the future performance and prospects of these companies in the stock market.
