All articles tagged with #stock drop
Apple's stock plummeted over 2.5% shortly after its WWDC keynote, primarily due to investor disappointment over the company's slow progress in AI development, particularly with Siri, which remains unrefined compared to competitors like Google and Microsoft. The delay in AI enhancements has caused concern about Apple's ability to compete in the rapidly advancing generative AI industry.
UiPath reported Q1 CY2024 revenue of $335.1 million, slightly beating analyst expectations, and a non-GAAP profit of $0.13 per share. However, the company's stock dropped 29.9% due to disappointing revenue guidance for the next quarter and the full year, as well as the unexpected resignation of CEO Rob Enslin.
Verastem (VSTM) stock plummeted by 62% following the release of clinical trial data for its metastatic pancreatic cancer treatment, which revealed serious adverse events in 12 patients, including 11 with grade ≥3 events. Despite initial positive results, the safety concerns led to heavy trading and a significant drop in stock value.
Adobe Inc. saw its stock drop by as much as 12% in premarket trading after issuing a weak sales outlook for the current quarter, citing concerns about competition from new AI startups. The company's revenue forecast of $5.25 billion to $5.3 billion fell short of analysts' average estimate of $5.31 billion, leading to investor disappointment. Adobe has been integrating its proprietary AI model, Firefly, into products like Photoshop and Illustrator to address competition, but concerns about new generative AI-based startups like OpenAI have reignited fears. The company is aiming to monetize its new AI features and plans to increase these efforts in the second half of the year, while also announcing a new $25 billion share buyback program.
Adobe Inc. dropped about 10% in extended trading after giving a weak outlook for sales in the current quarter, citing concerns about competition from new AI-focused startups. The company's revenue forecast of $5.25 billion to $5.3 billion fell short of analysts' average estimate of $5.31 billion, and its profit outlook also missed expectations. Adobe has been facing anxieties about new generative AI-based startups cutting into its market, and its response has been to integrate its proprietary AI model, Firefly, into its top products. The company is optimistic about its AI initiatives but disappointed investors with lower-than-expected recurring creative business and underperformance in stock value.
Snowflake's shares plummeted 20% following the announcement of CEO Frank Slootman's retirement and the release of weaker-than-expected earnings and first-quarter guidance. The company's fourth-quarter results and lower-than-anticipated first-quarter outlook led to Morgan Stanley downgrading its stock rating, while analysts at Macquarie Equity Research upgraded the stock, citing confidence in the new CEO, Sridhar Ramaswamy, and the company's emphasis on AI/ML. Ramaswamy, a former Google executive, will replace Slootman, who will remain chairman of the board.
Snowflake's CEO Frank Slootman has announced his immediate retirement, contradicting previous denials of impending departure. The company's stock plummeted by over 20% following the news. Slootman's replacement is Sridhar Ramaswamy, a former Google ad exec.
Archer-Daniels-Midland (ADM) shares plummeted 22% as the company launched an accounting probe into its Nutrition segment, leading to the CFO being placed on leave and a cut in its 2023 profit forecast. The investigation, prompted by a voluntary document request from the SEC, has raised concerns about the segment's performance amid weak demand for meat alternatives and other products. The company's stock hit its lowest level since February 2021, and at least four brokerages downgraded ADM's stock following the news.
Pfizer's 2024 revenue outlook has disappointed Wall Street, with the company projecting a potential decline or flat revenue compared to 2023. To address financial pressures, Pfizer plans to implement an additional $500 million in cost cuts. The stock dropped around 7% in response to the news. The company expects revenues of $58.5 billion to $61.5 billion in 2024, falling short of analysts' average guidance of $63.2 billion. Sales of COVID-19 products and the Seagen acquisition are expected to contribute to revenue, but excluding these, Pfizer anticipates 3% to 5% operational revenue growth in 2024.
Lucid Group Inc.'s stock dropped 4% after the electric vehicle (EV) maker announced the resignation of its Chief Financial Officer, Sherry House, who will be leaving to pursue other opportunities. The company named Gagan Dhingra as interim CFO while they search for a replacement.
Planet Fitness, the popular workout chain, shocked investors and employees by ousting CEO Chris Rondeau. The stock dropped 15% following the announcement. The company is now searching for a new CEO internally and externally, with former New Hampshire governor Craig Benson serving as interim CEO. Rondeau's departure appears sudden, and the reason behind the decision remains unclear. Despite a strong second-quarter earnings report, concerns over equipment plans and new franchises have made investors wary. Rondeau, who has been with the company for nearly 30 years, will continue as a member of the board of directors and provide advisory support during the transition.
Netflix shares fell over 8% after the company reported better-than-expected subscriber gains for Q2 but missed revenue expectations. The stock drop came despite Netflix's successful crackdown on password-sharing accounts, which boosted overall subscriber numbers. However, the company did not disclose details about the paid-sharing program or its ad-supported tier. Analysts remain bullish on Netflix's position as a leader in the streaming market, with some raising their price targets on the stock. Netflix expects most of its revenue growth in 2023 to come from new paid memberships, driven by the paid-sharing rollout.
Tesla stock dropped 5% after the company reported strong earnings, leaving investors wondering if it's a buying opportunity or a sign of more pain to come. The market was not impressed despite the beat on top and bottom lines.
PacWest Bancorp is reportedly exploring strategic options, including a sale or raising capital, after its shares dropped nearly 72% since the start of 2023. The California-based bank has not yet initiated an auction process, and selling all of its businesses as one hasn't been attractive to many entities. PacWest's other options include breaking its businesses up. The bank's total deposits for Q1 2023 marked a nearly 17% decrease from Q4 2022 and an approximately 15% decline from Q1 2022.
First Republic's stock closed down 43% and continued to drop in after-hours trading, resulting in significant financial losses for the company.