Carvana, GameStop, AMC, General Motors and more
Check out which companies are making the headlines at midday Thursday.
Carvana – Shares of the online used-car retailer are up nearly 30%, along with other heavily shorted stocks. Roughly 29% of Carvana’s stock available for trading is being sold short, according to FactSet. The company faced negative sentiment on Wall Street recently, with ratings downgrades this month from Stifel, Morgan Stanley and Wells Fargo.
Tapestry – Shares rose 15.9% after the luxury company behind Coach and Kate Spade said it expects a Covid-related shutdown in China in June. Tapestry also reported an adjusted quarterly profit of 51 cents per share, which beat a consensus estimate from Refinitiv.
GameStop, AMC Entertainment – Two of the main players in the meme trade last year are back on the rise again on Thursday. GameStop and AMC stock prices are up 10.3% and 7.3%, respectively, and are also up significantly earlier in the session. There was no clear news driving the moves, which may have been caused in part by traders selling shares to cover their positions.
GM, Ford — Old-car stocks came under pressure Thursday after Wells Fargo cut its rating to underweight from overweight, warning that rising costs of producing electric cars will hurt profits in the coming years. Ford lost 1.4%, while General Motors fell 3.6%.
WeWork – Shares jumped 9.8% after the co-working space company reported first-quarter results. WeWork reported an adjusted earnings per share loss of 57 cents on revenue of $765 million. That loss was 37% less than the previous quarter.
Rivian, Lucid – Shares of several electric car companies jumped midday in unexplained trading. Rivian’s share price rose 20.9% after the electric car maker said on Wednesday it was on track to build 25,000 vehicles this year, in addition to a first-quarter loss that was slightly less than analysts had expected. Lucid’s share price jumped 12.3%.
Sonos — Shares jumped 14.9% after the high-end audio products maker reported better-than-expected revenue for the fourth quarter amid continued high demand. Revenue for the quarter came in at $399 million, compared to Refinitiv’s forecast of $350 million.
Synchrony Financial – Synchrony Financial’s stock price came under pressure after Wolfe Research’s downgrade. The research firm downgraded the stock to underperforming peers, saying credit card stocks will see continued pressure from recession risk. Shares are down 5%.
Bumble — Shares of the dating app operator jumped 26.2 percent after the company reported $211.2 million in revenue for the first quarter, topping analysts’ estimates of $208.3 million, according to Refinitiv. The company also said it saw a 7.2% increase in user payments for the quarter.
– CNBC’s Tanaya Machel, Hannah Miu, and Jesse Pound contributed to the report.