Stock futures were falling Thursday on worries over a government shutdown and anxiety about the strength of the U.S. economy.
These stocks were poised to make moves Thursday:
Intel named Lip-Bu Tan, the former chief executive of Cadence Design Systems, as its new CEO and shares of the struggling semiconductor company jumped 10% in premarket trading. Tan once sat on the Intel board but left in August after a dispute over the company’s direction. Intel stock has declined 52% over the past year with the chip company failing to keep pace with its semiconductor peers.
One rival of Intel is Nvidia, the leading maker of artificial-intelligence chips. It was falling 0.9% in the premarket session after closing Wednesday up 6.4%. Coming into Thursday, the stock has declined 14% this year, partly because President Donald Trump’s trade policies have raised fears of a recession. Along with the drop in the stock price, Nvidia’s valuation also has declined. The stock is the second-least expensive member of the Magnificent Seven; the cheapest is Alphabet.
Tesla fell 1.9% in premarket trading. “Having covered Tesla for nearly 15 years, we find the investor narrative around the company tends to follow the share price,” wrote Morgan Stanley analyst Adam Jonas in a recent report, adding that in December, investors viewed Tesla as a big AI winner. Now, Elon Musk appears distracted. He rates shares Buy and has a $430 price target. His bear case for Tesla stock is $200 a share. His bull case is $800 a share.
Palantir shares slipped 1% after 7% rally on Wednesday. Since the beginning of 2024, Palantir's CEO, Alex Karp, has sold $1.9 billion worth of company stock, second only to Meta's Mark Zuckerberg. Known for his unconventional statements, Karp's actions have captured the attention of retail investors, even as he quietly executes significant stock sales.
Super Micro, Dell shares fell over 1% in premarket trading. Singapore prosecutors told a court on Thursday that a case in which Singapore-based firms have been accused of fraudulently supplying U.S. servers to Malaysia involves transactions worth $390 million. Three men have been charged with committing fraud against Dell and Super Micro by falsely representing where the servers would end up.
Adobe reported first-quarter adjusted earnings and revenue that topped analysts’ estimates but shares of the software company declined 4.6% after fiscal second-quarter guidance disappointed. Adobe said it expects adjusted earnings in its second quarter of $4.95 to $5 a share on revenue of $5.77 billion to $5.82 billion. Analysts were looking for adjusted earnings of $5 a share on revenue of $5.8 billion. The company backed its fiscal-year outlook with CEO Shantanu Narayen saying Adobe was “well-positioned to capitalize on the acceleration of the creative economy driven by AI.”
Fourth-quarter adjusted earnings at UiPath were better than expected but shares fell 17% after the automation-software developer issued fiscal first-quarter and fiscal-year revenue guidance that missed forecasts. UiPath expects first-quarter revenue of between $330 million and $335 million, below expectations of $367.5 million. CEO Ashim Gupta said its outlook reflects “increasing global macro economic uncertainty, particularly in the U.S. public sector.”
SentinelOne posted fourth-quarter earnings that beat Wall Street estimates but the cybersecurity company issued revenue guidance for the fiscal year that was below expectations. The company said it expects fiscal-year revenue of between $1.007 billion and $1.012 billion, below consensus estimates of $1.03 billion. Shares fell 14%.
American Eagle Outfitters was down 11% after the clothing retailer said the first quarter was “off to a slower start than expected” because of weaker demand and colder weather. CEO Jay Schottenstein expects a rebound as the spring season gets underway but said it was “taking proactive steps to strengthen the top-line, manage inventory and reduce expenses.” American Eagle forecast a low-single digit decline in fiscal-year revenue.
Earnings reports are expected Thursday from Ulta Beauty, D-Wave Quantum, DocuSign, Dollar General, Rubrik, ServiceTitan, Semtech, and PagerDuty.
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