Walgreens Boots Alliance saw a significant drop of more than 24.5% in its stock price after reporting third-quarter earnings that fell below Wall Street’s expectations. The company also adjusted its profit outlook for the full year and announced plans to close underperforming stores to cut costs. This decline in Walgreens’ stock price had a ripple effect, causing shares of CVS to fall more than 4% in sympathy.
Denim maker Levi Strauss experienced a 17.1% decline in its stock price as revenue for the second fiscal quarter came in slightly below the consensus forecast of $1.45 billion. This disappointing result shook investor confidence in the company and led to a significant drop in its share value.
International Paper
Shares of International Paper plunged nearly 8% after it was revealed that Suzano had abandoned its pursuit of acquiring the company. Suzano stated that it believed it had offered a fair price for the transaction but received no response from the other party. This news had a negative impact on International Paper’s stock performance.
Hims & Hers Health
Telehealth company Hims & Hers Health saw a 10.3% decrease in its stock price following the release of a report by Hunterbrook Media. The report raised concerns about the company’s sale of weight loss drugs, prompting a sell-off by investors. Hunterbrook Capital, affiliated with the hedge fund Hunterbook, disclosed a short position in Hims & Hers Health’s shares, adding to the negative sentiment surrounding the stock.
Furniture company RH experienced a 5.6% increase in its stock price after CEO Gary Friedman purchased $10 million worth of shares at an average price of $216.10 per share. This vote of confidence from the CEO boosted investor optimism in the company, leading to a positive movement in its stock value.
Memory chip company Micron Technology witnessed a nearly 7% decline in its stock price after offering guidance that met expectations but failed to exceed them. Analysts were hoping for a more bullish outlook, especially with the increasing demand for artificial intelligence technology. This modest guidance disappointed investors, leading to a drop in the company’s stock value.
AeroVironment
Manufacturer of unmanned aerial vehicles AeroVironment saw a sharp decline of almost 16% in its stock price following EBITDA guidance for fiscal 2025 that fell 5% below analyst expectations. Despite posting strong fourth-quarter earnings and revenue, the lower guidance for the upcoming year contributed to the negative market sentiment towards the company.
Computer networking company Arista Networks experienced a 4.3% increase in its stock price as Citi raised its price target, citing the company’s potential growth in the AI networking market. The bank’s optimism and higher price target boosted investor confidence in Arista Networks, leading to a positive movement in its stock value.
Goldman Sachs
Goldman Sachs saw a 2% decline in its stock price following the Federal Reserve’s stress test results, which indicated that all 31 banks tested were able to withstand a severe recession scenario. This news had a negative impact on the banking sector as a whole, leading to a drop in Goldman Sachs’ stock value.
The stock market saw a mix of ups and downs during midday trading, with companies like Walgreens Boots Alliance and Levi Strauss facing significant declines, while RH and Arista Networks experienced positive movements in their stock prices. Investor sentiment was greatly influenced by earnings results, guidance updates, and external factors such as stress test results from regulatory bodies. It’s crucial for investors to stay informed and adapt to changing market conditions to make sound investment decisions.