Biggest S&P 500 Movers on Thursday
2 hr 13 min ago
Decliners
- Software engineering firm Epam Systems (EPAM) shares fell 12.8% after its earnings report also included weak guidance. The Pennsylvania-based firm reported quarterly financials that were better than expected, but its quarterly and full-year outlook for earnings per share fell short of estimates, raising questions about the company’s growth potential.
- Law enforcement equipment firm Axon Enterprises (AXON) dropped 8.7% as the Taser maker fell for the second straight session following an analyst ratings downgrade.
- Royal Caribbean Cruises (RCL) fell by 7.6%, and other cruise lines were also down in the wake of comments from newly confirmed Commerce Secretary Howard Lutnick. He said that passenger boats could be subject to U.S. taxes. Carnival (CCL) fell by nearly 5.9% and Norwegian Cruise Lines (NCLH) dropped by 4.9%.
Advancers
- Hasbro (HAS) was the S&P 500’s biggest gainer, with its shares increasing 13.0% after the toy maker posted quarterly results that were better than analysts’ estimates. The Transformers maker also projected a modest revenue increase in 2025 and said it would adjust its strategy to focus more on reaching fans online.
John Nacion / Getty Images for Paramount Pictures
- Medical device maker Baxter International (BAX) rose by 8.5% after its better-than-expected earnings report showed that disruptions from Hurricane Helene on its North Carolina plant were less severe than initially projected.
Noteworthy Analyst Rating Changes on Thursday
2 hr 30 min ago
Roku Earnings Win Over Jefferies Analysts
Streaming platform provider Roku (ROKU) won over at least one bear with last week’s earnings report. Jefferies analysts on Thursday upgraded the stock to “Hold” from “Underperform” and raised their price target to $100 from $55.
“The bear case has weakened as Roku out-grew many ad peers in the Q, profitability is inflecting, and Roku retains multiple tailwinds to growth in FY25,” the analysts wrote. Those tailwinds, the analysts said, include “strengthening partnerships with Yahoo / Google,” the platform’s potential for higher fill rates versus peers, and “management’s commitment other than cost discipline.”
Jefferies’ new price target implies just 4% upside from Roku’s closing price on Wednesday. For Jefferies to raise their target further, “Roku will likely have to outperform its guide and give investors confidence these are not one-time benefits.”
SolarEdge Gets 1 Upgrade, 2 Downgrades
SolarEdge Technologies (SEDG) got an upgrade to “Equal-weight” and a 64% price target boost from Morgan Stanley on Thursday.
The analysts cited management’s recent decisions to shutter its unprofitable battery storage business and enforce headcount reductions as evidence of their commitment to improving profitability and free cash flow. Those efforts should help the company avoid issuing new equity to cover nearly $350 million of debt coming due in September, the analysts said.
The analysts acknowledged that SolarEdge faces a “long and potentially bumpy road ahead…given the unstable demand outlook for residential solar, particularly in Europe, coupled with heightened competition in the region.” But the absence of imminent negative catalysts and a likely improvement in free cash flow supported their decision to upgrade the stock and lift their price target from $11 to $18, about 8% below the stock’s closing price on Wednesday.
Not everyone on Wall Street agrees with Morgan Stanley. Northland Capital and BMO Capital Markets both downgraded SolarEdge to “Underperform” on Thursday. Both firms have assigned the stock a $15 price target.
Read the full article here,
Baxter Shares Soar on Better-Than-Expected Earnings
3 hr 13 min ago
Baxter International (BAX) was one of the best-performing stocks in the S&P 500 Thursday as shares surged after the medical device maker’s fourth-quarter results topped estimates.
The company’s fourth-quarter revenue came in at $2.75 billion, up 1% year-over-year and above analysts’ estimates compiled by Visible Alpha. Baxter’s adjusted earnings per share from continuing operations came in at 58 cents, down from a year ago, but also beating projections.
The results came as the company said Hurricane Helene affected its operations less than anticipated, adding all 10 production lines at a North Carolina facility temporarily shut down due to flooding from the hurricane have restarted and are producing at at pre-hurricane levels.
Earlier this month, Baxter announced the immediate retirement of CEO José Almeida, and said he would serve in an advisory capacity through the end of October. The company appointed one of its board directors, Brent Shafer, as interim CEO and said it would begin an internal and external search for a permanent replacement.
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Baxter shares jumped over 8% to close at $33.44 Thursday, but have still lost about 20% of their value over the last 12 months.
Palantir Bulls See Opportunity to Buy the Dip
4 hr 27 min ago
As Palantir (PLTR) shares tumbled Thursday, extending losses on expectations of defense spending cuts, some analysts suggested the selloff could be an opportunity to buy the dip.
Shares of Palantir fell 5% Thursday, a day after The Washington Post reported the Trump administration directed the Pentagon to trim the U.S. defense budget by 8% annually for the next five years.
Tasos Katopodis / Getty Images / Jacob Helberg
The U.S. government is a key client for Palantir, accounting for over 40% of its revenue in the fourth quarter, raising worries a pullback in defense spending would deal a major blow to the data analytics software provider.
However, Wedbush analysts said “this is exactly the opposite” of how they believe cuts could affect Palantir, anticipating its flagship Artificial Intelligence Platform and potential to streamline operations could win Palantir more business from the Pentagon in a tighter spending environment.
Earlier this month, analysts at Bank of America, Citi, UBS, and Morgan Stanley voiced similar sentiments, and boosted their price targets for the stock in the wake of Palantir’s strong fourth-quarter results.
The Wedbush analysts called Palantir one of their “top names to own in 2025,” in a note to clients Thursday, adding they believe the company could become “the next Oracle or Salesforce” and reach a market cap in the trillions of dollars in the years to come. Their price target of $120 represents a nearly 13% premium to Thursday’s intraday price.
Loop Capital analysts were even more bullish on the stock, reportedly initiating coverage Wednesday with a $141 price target, calling it a “game-changing software stock.” They also advised clients to view a pullback in the stock’s price as a buying opportunity.
This week’s selloff dragged Palantir stock into correction territory, with shares down 14% from their record-high close Tuesday. Still, they’ve more than quadrupled in value over the past 12 months.
Gold Rises to Record High Near $3,000/oz
5 hr 34 min ago
The price of gold reached another all-time high Thursday, pushing the precious metal’s value closer to the $3,000 mark—a milestone analysts increasingly think gold will soon surpass.
Spot gold (XAUUSD) surged as high as $2,954.95 per troy ounce Thursday morning. Gold has reached repeated record highs in recent weeks, rising roughly 13% already this year.
Gold is considered a safe-haven asset in times of uncertainty, and investor optimism for the yellow metal may be driven by concerns about the direction of the global economy and the impact of new U.S. tariffs.
Several Wall Street firms have raised their gold price forecasts to $3,000 or higher. Goldman Sachs, for instance, cited “structurally higher central bank demand” for gold in addition to investors’ appetite for parking assets in safe havens when it early this week raised its gold-price forecast to $3,100 by the end of 2025, up from $2,890 previously. Earlier this month, analysts at ING saw gold topping $3,000 in the current first quarter.
Not every firm, though, shares the same level of optimism. Morgan Stanley, while deeming gold’s recent run as seemingly “unstoppable,” sees the price of gold slipping to $2,700 by the fourth quarter. The firm notes that a potential Russia-Ukraine peace deal could damp the central bank demand that has helped drive gold higher.
Read the full article here.
Shake Shack Stock Jumps on Strong Earnings
6 hr 48 min ago
Shares of Shake Shack (SHAK) surged Thursday after the company’s fourth-quarter earnings topped estimates.
Shake Shack’s revenue was $328.7 million, up about 15% year-over-year and roughly in line with what analysts had expected, according to estimates compiled by Visible Alpha. Adjusted earnings per share came in at $0.26, two cents better than estimates and up from $0.02 per share the same time a year ago.
The fast casual burger chain’s systemwide sales across company-owned and franchised locations was $500.7 million, about $1.5 million below estimates. Same store sales grew 4.3% compared to the year-ago quarter, in line with what analysts had projected.
Vernon Yuen / NurPhoto / Getty Images
The company said in its quarterly letter to shareholders that it has grown from just 31 company-owned restaurants when it debuted as a public company in 2015 to nearly 330 locations currently. Shake Shack said it is upping its goal of company-owned locations to 1,500, up from its previous goal of 450.
First-quarter revenue is expected to be between $326.5 million to $330.9 million, just below the $333.08 million analyst consensus. Shake Shack forecast 2025 revenue from $1.45 billion to $1.48 billion and $45 million to $60 million in net income, each roughly in line with what analysts had expected.
Shares of the restaurant chain were up 10% in recent trading, putting them up about 25% over the last 12 months.
Hasbro Surges After Earnings Beat, Unveiling of New Strategy
8 hr 18 min ago
Hasbro (HAS) shares jumped Thursday after the toymaker posted better-than-expected results and unveiled a new strategy of raising revenue yearly through 2027.
The company behind “Dungeons & Dragons” fantasy games and Transformers action figures posted a fourth-quarter revenue decline of 15% year-on-year to $1.10 billion and adjusted earnings per share (EPS) of 46 cents. Both topped consensus estimates from Visible Alpha.
Hasbro also projected revenue to rise “slightly” in 2025 and adjusted EBITDA in the range of $1.1 billion to $1.15 billion. The outlook, it said, “includes the anticipated impact of US tariffs on imports from China and potential tariffs on Mexico and Canada imports as announced” on Feb. 1, 2025, but does not include new tariff actions after that date.
At the start of this month, U.S. President Donald Trump announced 25% tariffs on U.S. imports from Mexico and Canada, as well as an added 10% on Chinese products. The tariffs on Mexico and Canada have been paused for a month but those on China have taken effect.
Separately on Thursday, the toymaker — which like rival Mattel (MAT) makes a lot of its goods in China — announced a new strategy of generating an average of mid-single digit revenue growth through 2027. In a note last week before the results, JPMorgan said around 50% of Hasbro’s revenues are sourced out of China.
“Our new strategy is grounded in the key insights which will drive Hasbro’s evolution into a modern play company: serving fans of all ages around the world at every price point, and meeting fans where they are playing, which is increasingly online,” Chief Executive Officer Chris Cocks said.
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Hasbro shares were up 12% in recent trading, leading S&P 500 advancers. The stock has gained 37% over the past 12 months, almost double the increase of the S&P 500 over that stretch.
Cruise Stocks Sink on Tax Concerns
9 hr 9 min ago
Shares of cruise lines Royal Caribbean (RCL), Carnival Corporation (CCL) and Norwegian Cruise Line Holdings (NCLH) tumbled Thursday, a day after newly confirmed Commerce Secretary Howard Lutnick suggested those companies would have to begin paying U.S. taxes.
Lutnick complained in a Fox News interview that the ships of cruise line operators fly under the flags of various countries, not the U.S., and thus don’t pay U.S. taxes. He said, “This is going to end under Donald Trump, and those taxes are going to be paid.”
Lutnick said that because of collecting those and other tax revenues, the tax rates Americans pay will go down.
The comments came as the industry has been watching oil prices climb about 16% from their 2024 lows, and following a report from UBS indicating that bookings from California have slowed because of the wildfires there, and are down in Canada as travelers are discouraged by the strong dollar.
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Shares of Royal Caribbean, Carnival Corporation, and Norwegian Cruise Line Holdings each were down more than 6% in recent trading. The stocks have been soaring on booming post-COVID travel demand, with each up more than 50% over the past 12 months.
Palantir Levels to Watch as Retreats from Record High
10 hr 16 min ago
Palantir Technologies (PLTR) shares plunged in early trading Thursday after hitting a record high yesterday before reversing course and closing 10% lower.
The late-session drop on Wednesday followed a report that the Trump administration has directed the Pentagon to make sizable cuts to the U.S. defense budget. The move could negatively affect military contractors such as Palantir, which derived more than 40% of its fourth-quarter revenue from the U.S. government and recently extended a contract with the U.S. Army.
Palantir shares have continued to trend higher throughout most of February after staging an earnings-driven breakaway gap above an ascending triangle earlier this month. However, momentum appeared to shift in Wednesday’s trading session after the stock rallied to a new high before closing below the prior day’s low, forming a bearish engulfing pattern in the process.
Investors should monitor support levels on Palantir’s chart around $100, $85, and $66.
The stock was down 11% at around $101 about an hour after Thursday’s opening bell. Despite the sharp drop over the past two sessions, the stock is still up more than 300% over the past 12 months.
Read the full technical analysis piece here.
Walmart Stock Drops on Disappointing Outlook
10 hr 49 min ago
Walmart (WMT) reported better-than-expected fourth-quarter results Thursday, but its guidance came in short of estimates, sending shares sharply lower in early trading.
The retail giant posted adjusted earnings per share of $0.66 on revenue of $180.55 billion for the final quarter of fiscal 2025. Analysts polled by Visible Alpha were looking for $0.64 and $180.31 billion, respectively.
Walmart’s guidance for the first quarter and fiscal 2026 missed expectations. It said it expects revenue to grow 3% to 4% in both the first quarter and full year, while analysts had expected 3.7% and 4.2% growth, respectively. The company sees adjusted EPS between $0.57 and $0.58 in the first quarter and $2.50 to $2.60 for the year, both below consensus.
A number of analysts had lifted their price targets in the weeks leading up to Walmart’s earnings, citing optimism that the retailer was likely to top fourth-quarter estimates. They also said they expected Walmart to issue guidance more conservative than estimates, as it had done previously.
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Walmart shares were down 6% in early trading, leading decliners in the Dow Jones Industrial Average. Despite the early-session slide, the stock is up about 66% over the past 12 months, far outpacing the Dow’s performance over the period.
Carvana Stock Price Levels to Watch After Post-Earnings Drop
12 hr 16 min ago
Carvana (CVNA) shares moved sharply lower in premarket trading Thursday despite a better-than-expected earnings report from the used car retailer.
Through Wednesday’s close, Carvana shares had gained 40% so far in 2025 and were up more than five-fold over the past 12 months, as investors bid the stock higher on expectations of improved profitability and the company’s efforts to reduce its debt.
Carvana shares have traded within an ascending channel since April last year, with the price tagging the pattern’s upper and lower trendlines on several occasions over that time. the stock hit a fresh record high during Wednesday’s trading session before reversing to form an ominous shooting star ahead of the company’s quarterly results, a candlestick pattern that signals a potential move lower.
Investors should watch important support levels on Carvana’s chart around $235, $210, and $175, while also eyeing the ascending channel’s upper trendline, currently at $375, as a future resistance area.
The stock was down 8% in recent premarket trading at around $259.
Read the full technical analysis piece here.
Major Index Stock Futures Point to Lower Open
12 hr 58 min ago
Futures tied to the Dow Jones Industrial Average were down 0.3%.
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S&P 500 futures were off 0.3%.
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Nasdaq 100 futures also slipped 0.3%.
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