CarMax, Salesforce, Coinbase and more

Check out the companies making headlines in premarket trading.

CarMax — Shares of the used-car seller fell 4.8% after JPMorgan downgraded them to underweight, saying investors were not fully appreciating the risks surrounding the company and that hopes for a recovery looked “premature.”[ads1]; CarMax fell 53% in 2022 but is up 18% since its disappointing December quarter.

Salesforce — The software giant fell about 3% after Bernstein downgraded the shares to underperform, saying it is entering a “growth purgatory” and may have trouble climbing out of it. It comes a week after the company announced its plan to reduce staffing. Shares could fall another 20%, according to Bernstein.

Coin base — Shares of the crypto services provider fell around 3% following a downgrade from Bank of America, which said consensus estimates on Coinbase are “far too high” given the current crypto outlook. It came a day after the company announced a second round of layoffs involving about 950 jobs, a fifth of the company. Coinbase shares fell 86% in 2022 as macro conditions and scandal dragged down the crypto market.

Tesla — Tesla shares rose 2% after the electric car maker registered with the state of Texas to expand its electric car factory in Austin this year. Separately, Goldman Sachs named the stock a top pick for 2023.

Levi Strauss & Co — Shares in the clothing company fell 2.2% after Citi downgraded the stock to neutral from buy. The firm cited weaker denim trends that could pressure the company in the near to medium term.

Warner Bros Discovery — Guggenheim upgraded the media company to buy from neutral on Wednesday, citing an attractive risk/reward and narrative for the first half of the year. Warner Bros. Discovery rose 1.75% in premarket trading, following an 8% gain on Tuesday.

Toll Brothers — Shares of the homebuilder rose nearly 2% after Bank of America upgraded Toll Brothers to buy from neutral, noting: “TOL will face incremental headwinds from incentives and mix shifts throughout the year, but this will be offset by the tailwind’s lower input costs, especially timber.”

Wells Fargo — Wells Fargo is shrinking its footprint in the mortgage market as the bank deals with regulatory pressure and the impact of higher home prices. The company was once the largest mortgage lender in the country. It will now limit mortgage loans to existing customers and borrowers from minority communities. Shares were up less than 1% pre-market.

Southwest Airlines — Susquehanna downgraded the airline to neutral from positive, citing the operational meltdown during the recent winter storm. Southwest lost 1.55% in the premarket.

Walt Disney — Disney revised its pricing rules at its domestic theme parks, making a number of changes to the reservation and ticketing system, as well as the annual pass membership benefits, to make it easier for loyal customers to participate. Shares were up less than 1% pre-market.

– CNBC’s Samantha Subin, Michelle Fox, Jesse Pound and Alex Harring contributed reporting

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