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Check out the companies that make headlines in midday trading.
Twitter – The social media company jumped 26.6% after a profile revealed that Elon Musk has held a 9.2% passive stake in the company, worth about $2.9 billion. The sale comes weeks after the Tesla CEO polled his more than 80 million Twitter followers on whether the platform adheres to free speech guidelines. Musk also recently hinted at starting his own website. The move is fueling speculation among analysts that Musk may have more active ownership on Twitter or even consider a takeover down the road.
Tesla – Shares add 4.1% later Tesla reports electric vehicle deliveries in the first quarter. More than 310,000 vehicles delivered marked a quarterly record, but fell slightly short of Wall Street estimates. Most analysts attribute the miss to Covid stops working in Shanghaiwhere Tesla has a main factory.
Starbucks – The coffee chain fell 4.6% after its share buyback program was suspended. The decision was made when Howard Schultz returned to the helm as CEO of the company, and in the context of a larger union push from corporate boards of directors.
JD.com, Netease, Alibaba, Tencent Music – Shares of Chinese companies listed in the US rose after China proposed amending privacy rules related to audit supervision. This move could prevent companies from being delisted in the US. JD.com is up 8%, Netease is up 2%, Alibaba is up 6.4%, and Tencent Music is up 8.8%.
Hertz Shares of the car rental company rose 9.3% after Hertz announced a partnership with electric car maker Polestar. According to a press release, Hertz will buy up to 65,000 electric vehicles over the next five years.
Logitech – Shares rose 6.3% after Goldman Sachs Upgrades the Company “buy” from “neutral” and say they can benefit greatly from the growing trend towards gaming and video conferencing.
Mission Diagnosis – Shares drop more than 1% after Citi downgrade diagnostic information service company to neutral from buy, due to the uncertainty surrounding its post-pandemic pattern. Citi cited Quest’s profit outlook for this year and next as well as increased labor pressures and falling volumes.
Baxter – Shares fell 3.3% after Goldman Sachs downgraded the stock to sell from neutral. The company said the call was caused by Baxter’s “over-indexing of variables and numbers that are at risk.”
Ollie’s Bargain Outlet Holdings – Retail stocks up 13.1% after Wells Fargo Upgraded Ollie’s to weight from balance. Wells Fargo says the stock could prove to be a “coil spring” once the company has weathered the disruptions of the pandemic.
– CNBC’s Yun Li, Samantha Subin, Sarah Min, Jesse Pound, and Tanaya Macheel contributed reporting
