Check out the companies making headlines during midday trading Thursday.
Disney — Shares of the media giant jumped 4%. Late Wednesday, the company said it would raise the price on its ad-free streaming tier in October and that it would crack down on password sharing. Disney reported a 7.4% decline in subscriber count last quarter, however. It also recorded $2.65 billion in one-time charges and impairments, dragging the company to a rare quarterly net loss.
AppLovin — Shares popped more than 23%. On Wednesday, the game developer posted solid second-quarter results and shared stronger-than-expected revenue guidance for the current period. AppLovin said it anticipates revenues to range between $780 million and $800 million, ahead of the $741 million expected by analysts, per Refinitiv. Earnings for the recent quarter came in at 22 cents, versus the 7 cents anticipated.
Alibaba — U.S.-traded shares rose 5.7% on Thursday after the Chinese company beat analysts’ expectations and posted its biggest year-over-year revenue growth since 2021. In the June quarter, the company posted revenue of 234.16 billion yuan versus 224.92 billion yuan expected, per Refinitiv.
Capri, Tapestry — Capri soared more than 56%, while luxury company Tapestry slid 15% during midday trading. The moves come after Thursday’s announcement that Tapestry, which is behind the brands Coach and Kate Spade, is set to acquire Capri Holdings in a roughly $8.5 billion deal. Capri owns the Versace, Jimmy Choo and Michael Kors brands.
Wynn Resorts — Shares of the hotel and casino company climbed 3% after Wynn topped analysts’ estimates in its second-quarter results. Late Wednesday, the company reported 91 cents in adjusted earnings per share on $1.60 billion of revenue. Analysts surveyed by Refinitiv were expecting 59 cents per share on $1.54 billion of revenue.
Global Payments — The financial technology stock added nearly 3% after Jefferies upgraded the company to buy from hold, citing long-term margin expansion and revenue growth as consumer spending increases. The analyst assigned a price target of $145, which implies a 16.9% gain from Wednesday’s close.
Penn Entertainment — Shares dropped about 3.5% midday Thursday. Truist downgraded shares to hold from buy in a note from Wednesday evening, citing uncertainty around the company’s partnership with Disney’s ESPN to relaunch its sports betting app.
Roblox — Shares of the gaming company added 3% in midday trading after an upgrade to outperform from Wedbush. Analyst Nick McKay remains optimistic on Roblox’s long-term trajectory, even though the company recently missed analysts’ estimates on the top and bottom lines in the second quarter.
Fleetcor Technologies – Shares of the global business payments company popped 4%. Several Wall Street firms hiked their price targets on Fleetcor Wednesday in response to the company’s top and bottom-line beat for the second quarter. Earlier this week, Fleetcor posted adjusted earnings of $4.19 per share on revenue of $948.2 million. Analysts polled by FactSet called for earnings of $4.17 per share on revenue of $945 million.
— CNBC’s Brian Evans, Hakyung Kim, Samantha Subin, Jesse Pound, Yun Li and Alex Harring contributed reporting.
Read the full article here
