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Carvana, GameStop, AMC, General Motors and more

by admin
May 12, 2022
in Business
Carvana, GameStop, AMC, General Motors and more


Check out the companies making headlines in midday trading Thursday.

Carvana — Shares of the online used car retailer popped nearly 30%, alongside other heavily-shorted stocks. Nearly 29% of Carvana shares available for trading are sold short, according to FactSet. The company has faced negative sentiment on Wall Street recently, with downgrades this month from Stifel, Morgan Stanley and Wells Fargo.

Tapestry — Shares soared 15.9% after the luxury company behind Coach and Kate Spade reported that it expects Covid-related shutdowns in China to ease in June. Tapestry also reported an adjusted quarterly profit of 51 cents per share, which topped a consensus estimate from Refinitiv.

GameStop, AMC Entertainment — Two of the main players in last year’s meme trade were surging again on Thursday. Shares of GameStop and AMC were up 10.3% and 7.3%, respectively, and had been up significantly more earlier in the session. There was no obvious news driving the moves and may have been due in part to traders who were short the stocks covering their positions.

General Motors, Ford — The legacy auto stocks were under pressure on Thursday after Wells Fargo downgraded both to underweight from overweight, warning that the high costs of producing electric vehicles would hurt profits in the years ahead. Ford lost 1.4%, while GM dropped 3.6%.

WeWork — Shares jumped 9.8% after the coworking space company posted its first-quarter results. WeWork reported an adjusted earnings per share loss of 57 cents on revenue of $765 million. That loss was was 37% lower than in the previous quarter.

Rivian, Lucid — Shares of several several electric vehicle companies surged in midday trading in unexplained trading. Rivian’s stock price soared 20.9% after the electric vehicle maker on Wednesday said it’s on track to build 25,000 vehicles this year, as well as a first-quarter loss that was slightly less than analysts were expecting. Lucid’s stock price jumped 12.3%.

Sonos — Shares jumped 14.9% after the of high-end audio products maker reported better-than-expected revenue for its most recent quarter amid continued high demand. Revenue for the quarter came in at $399 million, compared to a Refinitiv forecast of $350 million.

Synchrony Financial — Synchrony Financial’s stock price came under pressure following a downgrade from Wolfe Research. The research firm downgraded shares to underperform from peer perform, saying credit card stocks will see continued pressure from recession risks. Shares dropped 5%.

Bumble — The dating app operator’s shares jumped 26.2% after the company reported $211.2 million in revenue for the first quarter, which exceeded analysts’ estimates of $208.3 million, according to Refinitiv. The company also said it saw a 7.2% increase in paying users for the quarter.

— CNBC’s Tanaya Macheel, Hannah Miao and Jesse Pound contributed reporting.



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