Several companies were making headlines in midday trading, with GameStop and AMC Entertainment, the so-called meme stocks, experiencing significant declines after a two-day rally. GameStop dropped by about 30%, while AMC fell by 20% as the trading frenzy appeared to fade. The sell-off in AMC shares was also influenced by the company’s announcement of a debt-for-equity swap. Prior to Wednesday, GameStop and AMC had seen impressive increases of 179% and 135%, respectively, for the week.
Boeing saw its shares slip by 1.7% after the Justice Department claimed that the airplane manufacturer had violated a 2021 settlement that had protected it from criminal charges related to two fatal 737 Max crashes. Boeing is now at risk of potential prosecution, although the company has denied the claims. On a more positive note, Dell Technologies experienced a rally of over 8% after Morgan Stanley raised its price target on the stock. The firm highlighted the increasing momentum among enterprise clients, particularly in artificial intelligence server demand.
Chinese automaker Nio, despite receiving an upgrade from JPMorgan to neutral from underweight, saw its shares drop by 8%. JPMorgan pointed to the potential benefits from Chinese government stimulus policies and Nio’s latest battery as a service strategy, which could help boost sales. Nio also launched its new lower-priced brand, Onvo, to compete with Tesla. Monday.com, a project management software company, saw a significant rise of almost 19% after posting better-than-expected first-quarter results and raising its full-year guidance due to strong demand and improved customer profiles following a price increase.
New York Community Bancorp experienced a 4% drop in its shares after agreeing to sell around $5 billion in mortgage warehouse loans to JPMorgan Chase to enhance its liquidity. The sale is expected to close in the third quarter. On the other hand, Petco Health & Wellness saw its shares surge by more than 16% following the appointment of Glenn Murphy as executive chairman of the board, along with his purchase of about $2.5 million worth of shares as part of his new role. TKO Group Holdings, a sports entertainment stock, also rose by nearly 3% after receiving an upgrade to buy from hold at TD Cowen, which noted that TKO’s stock presented a relatively inexpensive way to invest in sports.
Overall, the midday trading session saw a mix of gains and losses for various companies, with meme stocks like GameStop and AMC Entertainment experiencing significant declines following a two-day rally. Additionally, companies like Boeing faced challenges, with potential legal issues looming over them. On the other hand, companies like Dell Technologies and Monday.com saw positive momentum, with the latter posting strong first-quarter results and raising its full-year guidance. It remains to be seen how these companies will fare in the coming days as market conditions continue to evolve.
