Hasbro Lays Off Workers as Sales Decline
Toymaker Hasbro has announced plans to lay off approximately 1,100 workers as the company continues to struggle with soft sales. In a memo obtained by CNBC, CEO Chris Cocks stated that these sales challenges are expected to persist into 2024. This news caused the company’s stock to drop 5.5%.
Oracle Misses Revenue Expectations
Shares of database software company Oracle fell nearly 9% after the company reported fiscal second quarter revenue that missed expectations. Analysts had predicted revenue of $13.05 billion, but the actual figure came in at $12.49 billion. Despite this setback, Oracle’s stock is still up more than 40% for the year.
Lucid CFO Resigns
Electric vehicle manufacturer Lucid saw its stock slide approximately 3.5% following the announcement that Chief Financial Officer Sherry House is resigning immediately to pursue other opportunities.
Airbnb and Expedia Shares Decline
Airbnb and Expedia both experienced drops in their share prices before the market opened. Barclays downgraded Airbnb to underweight and Expedia to equal weight, citing a cautious outlook for travel and softer demand in 2024.
Rio Tinto Receives Upgrade from JPMorgan
JPMorgan upgraded global mining group Rio Tinto from neutral to overweight, causing the company’s shares to increase by 2%. The bank cited Rio Tinto’s “best-in-class balance sheet” and positive medium-term outlook for commodities as reasons for the upgrade.
Macy’s Stock Slips After Buyout Offer
Macy’s, the owner of Bloomingdales, saw its stock slip 2.2% after surging almost 20% the previous day following a $5.8 billion buyout offer. Citi subsequently downgraded Macy’s to sell from neutral, expressing skepticism about the deal materializing.
Zillow Group Receives Upgrade
Shares of real estate tech platform Zillow Group rose 3% before the market opened after an upgrade to market outperform from market perform at JMP. Analyst Nicholas Jones predicts a 37% upside for the stock, citing an increase in real estate demand and volume.
Crocs Receives Buy Rating from Bank of America
Bank of America initiated coverage of casual footwear maker Crocs with a buy rating and a price target of $128, implying over 22% upside. The bank highlighted Crocs’ strong sales momentum and predicted continued success for the company.
Google Loses Antitrust Lawsuit
Alphabet, the parent company of Google, saw its shares tick down slightly after losing an antitrust lawsuit filed by Epic Games. A federal jury found that Google’s Android app store had anti-competitive barriers that harmed consumers and software developers.
Wyndham Hotel and Resorts Receives Takeover Offer
Budget hotel owner Choice Hotels announced an exchange offer to acquire Wyndham Hotel and Resorts, valuing the takeover at approximately $8 billion. This news caused Wyndham’s shares to jump nearly 3%.
FuboTV Gets Overweight Rating
Sports-focused TV company FuboTV experienced a 3.9% increase in its share price after Cantor Fitzgerald initiated coverage with an overweight rating. The firm believes that FuboTV has a more realistic path to profitability than the market expects and sees it as a major player in the sports streaming service industry.
Hot Take: Mixed Performances and Market Outlook
Several companies in different sectors experienced various performances in premarket trading. Hasbro’s decision to lay off workers reflects its struggle with declining sales. Oracle’s missed revenue expectations caused a drop in its stock price, despite a strong overall performance for the year. Lucid faces a challenge with its CFO resigning. Airbnb and Expedia saw their shares decline due to cautious market outlooks for travel. On the other hand, Rio Tinto received an upgrade based on positive medium-term prospects for commodities. Macy’s stock slipped after a buyout offer, while Zillow Group and Crocs received upgrades due to favorable market conditions. Google lost an antitrust lawsuit, and Wyndham Hotel and Resorts received a takeover offer. FuboTV’s overweight rating suggests potential growth in the sports streaming industry.
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