The stock of Bank of America took a hit, sliding 2% after a regulatory filing showed Warren Buffett’s Berkshire Hathaway continued to downsize its stake in the company. Berkshire sold 13.9 million more shares of the bank over the past three trading days, totaling $550.7 million. This downward trend in Berkshire’s stake raises questions about the bank’s performance and future prospects in the eyes of investors.
On the other hand, the U.S.-listed shares of Chinese electric vehicle maker XPeng dropped approximately 7% following the issuance of third-quarter revenue guidance that fell short of expectations. The company’s revenue forecast ranged between CNY 9.1 billion and CNY 9.8 billion, failing to meet the FactSet consensus estimate of CNY 10.40 billion. This disappointing outlook could signal potential challenges for XPeng in the competitive EV market.
Shares of cybersecurity company Palo Alto Networks surged 8% after surpassing Wall Street’s fourth-quarter estimates. This positive performance not only marked the stock’s best day in nearly a year but also made it the top performer in the S&P 500 on that particular day. Additionally, Palo Alto Networks provided strong guidance for both the fiscal first quarter and the year, instilling confidence in investors.
Conversely, home improvement retailer Lowe’s saw a decline of 1% as its second-quarter revenue failed to meet expectations. With reported revenue of $23.59 billion falling short of the $23.91 billion estimated by analysts, concerns arose about the company’s ability to meet its financial targets. Furthermore, Lowe’s reduced its full-year forecast for both earnings per share and sales, signaling potential challenges ahead.
Aerospace giant Boeing witnessed a sharp drop of approximately 4.8% as it grounded its 777X test fleet due to the discovery of key structural damage. This setback raises concerns about the company’s manufacturing and quality control processes, potentially impacting its reputation and future business prospects.
Shares of media company Paramount Global slipped nearly 2% following reports of a rival bid from media executive Edgar Bronfman Jr. to acquire National Amusements, which holds a controlling stake in Paramount Global. This competitive bid adds uncertainty to Paramount Global’s future ownership structure and corporate strategy, leading to volatility in its stock price.
Pharmaceutical company Eli Lilly experienced a 3% jump in its stock price after reporting positive results from a late-stage trial of its weight loss drug, which showed a reduction in the risk of diabetes. This promising development could potentially drive future growth and profitability for the company, attracting investors seeking exposure to innovative healthcare solutions.
Finnish sports and outdoor company Amer Sports rallied 12.5% following an earnings and revenue beat, along with an upward revision of its full-year guidance. This strong performance reflects the company’s ability to deliver results and effectively capitalize on market opportunities, positioning it for sustainable growth and value creation in the long run.
Hawaiian Holdings saw a significant increase of 11.6%, while Alaska Air experienced a slight decline of 0.7% after receiving clearance from the U.S. Department of Justice for their merger worth $1.9 billion. The companies now await approval from the U.S. Department of Transportation to finalize the deal, which could potentially reshape the competitive landscape of the airline industry.
Electronic manufacturing company Fabrinet witnessed a more than 16% surge in its stock price following better-than-expected quarterly earnings and revenue. With fourth-quarter adjusted earnings of $2.41 per share on revenue of $753 million, surpassing analyst estimates, Fabrinet demonstrated robust operational performance and financial health, driving investor confidence in its growth trajectory.