Exterior of a Walmart store on August 23, 2020 in North Bergen, New Jersey.
VIEW press | Corbis News | Getty Images
Check out the companies that make headlines in the afternoon trade.
Walmart – Shares fell more than 11% after the major retailer reported quarterly earnings that fell significantly short of Wall Street’s expectations. Walmart posted first-quarter adjusted earnings of $1.30 per share on revenue of $141.57 billion. Analysts had expected earnings of $1.48 per share on revenue of $138.94 billion, according to Refinitiv consensus estimates. Walmart cited cost pressures from rising fuel prices, higher inventory levels and bloated staffing.
Citigroup – The bank’s shares rose 7.7% a day after a regulatory report showed that Warren Buffett’s Berkshire Hathaway added more than 55 million shares to boost $2.95 billion in stake in the first quarter. Citi shares have underperformed the financial sector over the past 12 months and are still down 15% this year.
Paramount Global – Paramount shares are up more than 15% after Berkshire Hathaway announced a $2.6 billion stake in the media company. At the end of the quarter, the media company was Berkshire’s 18th largest holding.
United Airlines – The carrier’s shares jumped more than 7% after the Federal Aviation Administration cleared 52 Boeing 777s to fly again after they were grounded due to engine failure. Aircraft make up 10% of United’s capacity. United said it plans to gradually return the aircraft starting later this month.
Take-Two Interactive Software shares up 11% despite easy guide and a miss in the order metric from a video game company. Analysts expect the outlook to improve after the company closes its acquisition of Zynga.
JD.com – Shares of the Chinese e-commerce giant are up more than 4% after the company beat revenue estimates for the latest quarter despite slowing growth as Covid-19 restrictions hit consumer spending. Revenue was 239.7 billion yuan, up 18% from the previous year, compared to an expected 236.6 billion yuan, according to Refinitiv.
Tencent Music Entertainment – U.S.-traded shares of the Chinese online entertainment platform fell more than 1%. Tencent Music reported 6.64 billion yuan in quarterly revenue, down 15% from the previous year.
AMD – Semiconductor stocks jumped 8.7% after Piper Sandler upgraded Advanced Micro Devices from neutral to overweight and said the stock could rise nearly 50% after falling this year.
Business Day — Shares fell 1.5% after UBS downgraded HR software stocks to neutral from Buy. The firm said Workday could be hit hard during the economic downturn.
Maxar Technologies – Shares of space companies fell almost 2% after Bank of America downgraded Maxar from neutral to unsatisfactory. The bank said it expects the satellite imagery company’s revenue and profitability to decline going forward.
Molson Coors – Beverage inventories fell more than 1% after Bernstein’s downgrade. The investment firm said that Molson Coors’ market recovery has largely run its course, with its rating moved from “outperform” to “market”.
– CNBC’s Yoon Lee, Jessie Pound, Sara Min, Samantha Subin, and Tanaya Macheel provided reporting.