Morning Brew: Market Movements Amid Earnings Releases and Dividend Activity
Amid a flurry of Q3 earnings releases, several stocks experienced significant movements. Plug Power (NASDAQ:PLUG) saw a dramatic 38% drop following its earnings announcement. Groupon (NASDAQ:GRPN) similarly fell by 29% due to a disappointing earnings report and a bleak revenue outlook for 2024. Other notable declines included Fortress Biotech (NASDAQ:FBIO), which dropped 29% after pricing a $10 million stock offering, and 2U (NASDAQ:TWOU), which fell 26% post-earnings. The Trade Desk (NASDAQ:TTD) also saw a 24% decrease after its earnings release, while Diageo (NYSE:DEO) warned of weakness in its Latin America/Caribbean business, leading to a 15% decline. Unity Software (NYSE:U) dropped 13% after Q3 earnings, with the interim CEO committing to a strategic change.
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On the positive side, dividend activity this week included increases from HP (NYSE:HPQ) and Devon Energy (NYSE:DVN), with declarations from Waste Management (NYSE:WM) and Valero (NYSE:VLO). Looking ahead, Exxon Mobil (NYSE:XOM) and Kroger (NYSE:KR) are approaching their ex-dividend dates for upcoming payments. Notable dividend increases were announced by Emerson Electric (NYSE:EMR), Devon Energy (NYSE:DVN), HP (NYSE:HPQ), and EOG Resources (NYSE:EOG).
Medical Properties Trust (NYSE:MPW) faced a downgrade to Hold from Buy by Stifel due to concerns over tenant stresses and delayed asset sales, causing a 1.9% dip in premarket trading. Meanwhile, T. Rowe Price Group (TROW) reported preliminary month-end assets under management of $1.31 trillion, with expected elevated net outflows in the coming months.
Chinese AI start-up 01.AI made a strategic move by stockpiling Nvidia (NASDAQ:NVDA) chips before the U.S. tightened export restrictions, ensuring an 18-month supply. This preemptive action comes as China intensifies efforts to boost its computing power. In cybersecurity, Palo Alto Networks (NASDAQ:PANW) emerged as a top pick at Morgan Stanley, with expectations of beating estimates and raising guidance in its upcoming report.
General Motors (NYSE:GM) is set to recall over 1.13 million vehicles in China due to fuel pump control unit issues, while Unity Software (NYSE:U) sold $1 billion in convertible senior notes. Canadian marijuana companies Aurora Cannabis (NASDAQ:ACB) and Canopy Growth (NASDAQ:CGC) saw pre-market gains after their fiscal 2024 second-quarter financials, with Aurora reporting a 30% YoY growth in net revenue.
FIGS Inc. (NYSE:FIGS) jumped 10% in premarket trading following a bullish endorsement from investor Ron Baron (Trades, Portfolio). Petrobras (NYSE:PBR) reported a decline in Q3 profit due to a weaker dollar and lower oil prices. Lastly, Cybin (CYBN) announced an underwritten offering of 66.67 million units, with proceeds intended for the progression of its CYB003 and deuterated DMT programs.
This article first appeared on GuruFocus.
