Eric Yuan, founder and chief executive officer of Zoom Video Communications, at right, speaks with Jay Heller, head of capital markets & initial public offering execution of Nasdaq, during the company’s IPO at the Nasdaq MarketSite in New York on April 18, 2019.
Victor J. Blue | Bloomberg | Getty Images
Check out the companies making headlines in midday trading on Monday:
Zoom Video — Shares of the video conferencing company rose 22% as investors look for stocks that that can benefit from the increase in people working from home. The stock is now trading at more than double the price that did at the end of January.
Amazon — Shares of Amazon 3.1% after the e-commerce giant announced it was raising overtime pay for warehouse workers to meet a surge in online orders.
Hasbro — Hasbro shares jumped 12.5% after CEO Brian Goldner said on CNBC the company was seeing strong demands for its products. “In fact, our supply chains are back up and running in China,” he said on “Squawk Box.” “We believe that by April our production will be fully caught up.”
AllianceBernstein — Shares of the private wealth manger dropped 10.3% after Bank of America downgraded AllianceBernstein’s stock to neutral from buy. The firm highlighted that it sees an economic recession hurting the company’s earnings moving forward.
Netflix — Shares of the streaming platform rose 8.2% following an upgrade to outperform from neutral by Baird Equity Research. The firm said the rise of cord-cutting could be compounded through the coronavirus crisis and provide a bigger boost to Netflix.
Boeing — Shares of Boeing surged, jumping 11.2%, after the company announced it would shut down production at its Seattle area factories for at least two weeks. A production halt will help the beleaguered aerospace giant cut costs as it looks to ride out the hit the aerospace industry has taken due to the coronavirus crisis. Boeing’s stock was already outperforming the tumbling market before the announcement, as Goldman Sachs upgraded the U.S. planemaker to buy from neutral, saying the company has enough cash to recover and demand for air travel will return to normal once the coronavirus crisis is over. Boeing is pursuing $60 billion in U.S. government aid for the aerospace industry.
Carnival Corp. — The cruise line’s stock fell initially but ended the day unchanged after Wells Fargo gave it a double downgrade to underweight from overweight, according to FactSet. Wells Fargo put a $6 per share price target on the stock, down from $55 and more than 40% below where it currently trades. The bank said in a note that it expected Carnival to issue more equity to raise cash.
AT&T — Shares of the telecom company slid 5.9% after a pair of analyst downgrades. RW Baird cut the stock to a neutral rating, while Cowen lowered its rating to market perform from outperform, citing growing risks to entertainment as the coronavirus outbreak rages on.
PepsiCo — Shares of the beverage giant rose 1.2% after Morgan Stanley upgraded Pepsi’s stock to “overweight” from “equal weight.” Morgan Stanley said Pepsi is “a buying opportunity” for investors, noting the stock has underperformed lately despite strong underlying earnings
Starbucks — Shares of the coffee chain slid 2.6% after the company said it would close most of its locations across North America for two weeks in an effort to halt the spread of the coronavirus. The company said it would continue to offer drivethrough service. Shares have shed 35% in the last month.
General Electric — GE’s stock 6.3% after the company announced its aviation unit would be laying off about 10% of its workforce, or about 2,600 employees. General Electric announced the broad change to its staffing as the coronavirus pandemic stifles the aerospace industry as commercial airline traffic sharply declined in the past few weeks.
Best Buy — Best Buy shares were down 1.9%. The retailer withdrew its financial guidance for the year due to uncertainty, the company said this weekend that is is seeing a surge in demand for products as more Americans work from home.
— CNBC’s Pippa Stevens, Fred Imbert, Yun Li, Maggie Fitzgerald and Jesse Pound contributed to this report.
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