Business

Upstart, WD-40, Vita Coco and others

The Twitter logo and trading information is displayed as a trader works on the floor of the New York Stock Exchange (NYSE) in New York, USA on May 3, 2022.

Brendan McDermid | Reuters

Check out the companies that make headlines in the afternoon trade.

Upstart – Shares in a consumer lender plunged more than 20% after the company issued a profit warning saying it will miss its already lowered financial targets for the second quarter, pointing to a tight lending market and taking steps to convert loans to cash . JMP also downgraded the stock, citing “limited earnings visibility” going forward.

Vita Coco – Shares of beverage company Vita Coco rose 16% as Bank of America upgraded the stock to Buy and raised its price target. The firm said a stabilization in the shipping market should lower costs and help boost the company’s profits in the coming years. In addition, Bank of America believes that Vita Coco is well positioned to withstand a possible recession.

WD-40 – Lubricants maker shares plunge 12% after company informed weaker-than-expected quarterly earnings. WD-40 Chairman and CEO Harry Ridge cited a “challenging macro environment” and rising inflation as pressure on the company’s gross margin.

XPO Logistics – Shares of trucking company XPO Logistics jumped almost 2% after Morgan Stanley upgraded its rating to “outperform”. The bank sees XPO Logistics as a buying opportunity now that the stock is down 35% year-to-date.

Spirit Airlines – The airline’s shares are up more than 3% after Spirit Airlines postponed yet another shareholder vote on its plan to merge with Frontier Group. This is the third time that Spirit has postponed a vote as Frontier Group and JetBlue Airways are competing in a war for the airline.

Twitter – Twitter shares lost 4.5% after Washington Post report that Elon Musk’s deal to buy the social network is in jeopardy.

Tesla – Tesla shares rose more than 1% after a report from the China Passenger Car Association showed that Tesla has sold a record number of Chinese-made vehicles. Tesla sold 78,906 Chinese-made vehicles in June, up from 32,165 vehicles in May.

GameStop – The video game retailer’s shares fell more than 5% on the day after the company said it fired its chief financial officer, Mike Recupero, and is cutting staff across departments as part of an aggressive reorganization plan. CEO Matt Furlong explained the changes in the memo to employees and said the company must take bold steps as it invests in its digital future.

Six Flags Entertainment – Shares of Six Flags fell more than 6% after Citi downgraded the stock to Neutral from Buy and cut its price target to $26 from $41. Citi cited a drop in attendance amid rising inflation.

– CNBC’s Yun Lee, Tana Machil and Carmen Reinike contributed reporting.


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