Snap, Abercrombie & Fitch Plunge in Premarket; Zoom Rises
By Geoffrey Smith
Investing.com -- Stocks in focus in premarket trading on Tuesday, 24th May. Please refresh for updates.
Snap (NYSE:SNAP) stock fell 33% in response to a profit warning issued by the Snapchat parent after the close on Monday. The company sees revenue and EBITDA below the bottom end of the guidance it gave only last month. Meta (NASDAQ:FB) stock fell by 7.8%, Twitter (NYSE:TWTR) stock by 3.6%, and Pinterest (NYSE:PINS) stock by 16% on the read-across for other social media companies from Snapchat’s warning. The disruption of the advertising market (by competitors such as TikTok and by platform operators such as Apple (NASDAQ:AAPL) is weighing heavily on their ability to sell ads. Abercrombie&Fitch (NYSE:ANF) fell 31% after the company cut its sales forecast and withdrew its full-year guidance for gross margin and costs, citing ‘volatility in freight and other costs.” These caused a 2 percentage point drop in its operating margin in the first quarter. Tesla (NASDAQ:TSLA) stock fell 3.0% after Daiwa became the latest brokerage to cut its price target (albeit to a level still far above the current price). Zoom Video (NASDAQ:ZM) stock rose 3.9% after the teleconferencing company reported earnings that were not as bad as feared. The company recorded its best Best Buy (NYSE:BBY) stock fell 2.1% after cutting its sales and profit forecasts for the year, in line with a host of other retailers. Its first-quarter sales were above expectations but earnings missed forecasts by some 3%, as consumers pared back purchases of big-ticket electronic goods. NetEase (NASDAQ:NTES) stock rose 3.0% after the Chinese-based gaming company reported better-than-expected sales and profit. Albertsons (NYSE:ACI) stock fell 2.1% amid reports of a large block of the grocery store chain’s stock being offered. AutoZone (NYSE:AZO) stock rose 1.0% as the car seller’s quarterly earnings managed to stop the rot that set in last month. The stock is down nearly 25% since then, amid signs that the pandemic-driven boom in second-hand cars is over. Advance Auto Parts (NYSE:AAP) stock fell 1.9% after the company issued guidance for the quarter that was below market hopes. Its sales and earnings for the quarter just ended were largely in line with expectations.
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