Intuit, the parent company of TurboTax, faced a nearly 4% drop in its stock after announcing a significant workforce reduction of 1,800 jobs. This decision comes as the company increases its investments in artificial intelligence. Although Intuit plans to rehire the same number of people for engineering, product, and consumer-focused roles, the initial job cuts rattled investors and led to a decline in share prices.
Legal tech company LegalZoom.com experienced a sharp decline of over 25% in its stock value following the departure of CEO Dan Wernikoff and a downward revision of its full-year revenue outlook. With Chairman Jeffrey Stibel taking over as the new CEO, the company now expects revenue to fall between $675 million and $685 million for the year, down from the previous guidance of $700 million to $720 million. This drastic change in leadership and financial forecast sent shockwaves through the market.
In contrast to the negative trends seen in other companies, chip stock Taiwan Semiconductor Manufacturing witnessed a 3% increase in its share price after reporting robust revenue results. Despite a slight decline from the previous month, the company’s revenue for June marked a significant increase over the same period last year. With strong performance in the first half of the year, Taiwan Semiconductor Manufacturing is on track for continued growth and success.
Online car seller Carvana saw a 5% rise in its stock value after receiving an upgrade from Needham, prompting a shift from hold to buy. The firm’s positive outlook on Carvana’s ability to boost unit sales through enhanced customer experience and physical presence buoyed investor confidence. This upgrade also benefited CarMax, a peer used-car retailer, which experienced a more than 6% increase in its stock price.
Baidu, a technology giant, saw a 2.4% increase in its stock as its Apollo Go robotaxi gained popularity in China. The company’s driverless robotaxi service was granted approval in Shanghai, signaling China’s commitment to advancing autonomous driving technology. Residents can now enjoy free rides through Baidu’s platform, along with three other participating companies. This development underscores Baidu’s position as a leader in innovative transportation solutions.
Payment card network processors Mastercard and Visa faced a downturn in their stock prices, with Mastercard falling 3% and Visa sliding 1%. The decline came after Bank of America downgraded both companies from buy to neutral, citing limited growth potential and concerns about valuation multiples. This downgrade highlighted the challenges facing these industry giants in an increasingly competitive market.
Pro football club Manchester United experienced a 2.4% increase in its stock value following the release of its third-quarter earnings for fiscal 2024. While third-quarter revenue declined compared to the previous year, the company expects full-year revenue to align with its guidance of 660 million euros. The positive response from investors reflects confidence in Manchester United’s long-term financial prospects.
Single-cell market leader 10x Genomics witnessed a significant drop of around 13% in its stock price, driven by concerns following Illumina’s announcement of acquiring Fluent BioSciences. Analysts interpreted this acquisition as a signal of leadership changes at Illumina, leading to a decline in 10x Genomics’ valuation. Despite this setback, Illumina’s stock saw a more than 4% increase post-announcement.
Pharmaceutical company Teva Pharmaceutical Industries experienced a 5% increase in its stock value after receiving an upgrade from Argus to buy from hold. The upgrade was based on Teva’s robust pipeline of pharmaceutical products, which holds promise for future growth. UBS also raised its price target for Teva, further bolstering investor confidence in the company’s potential.
Footwear company Deckers faced a 5.8% decline in its stock value following a negative assessment from research firm M Science. The firm highlighted a slowdown in sales growth for popular brands like Hoka and Ugg in June, leading to a downward revision of fiscal first-quarter net sales estimates. This news cast a shadow on Deckers’ performance and raised concerns among investors about future prospects.
Chipmaker Advanced Micro Devices (AMD) recorded a more than 3% increase in its stock price after announcing the acquisition of Silo AI, a private AI lab in Europe, in a deal worth approximately $665 million. This strategic move is expected to strengthen AMD’s capabilities in artificial intelligence and enhance its competitive position in the market. The acquisition is set to close in the second half of 2024, signaling a new phase of growth for AMD.
The midday trading trends reflect a diverse range of performances across different companies, highlighting the dynamic nature of the stock market. While some companies faced challenges and setbacks, others capitalized on opportunities for growth and innovation. Investors must carefully analyze these trends to make informed decisions and navigate the complexities of the market effectively.