Intuit, the parent company of TurboTax, recently faced a setback in midday trading as its shares fell by nearly 4%. This decline was a result of the company’s decision to cut 1,800 jobs, representing about 10% of its workforce. The move came as Intuit seeks to increase investments in artificial intelligence. However, it also announced plans to rehire 1,800 individuals for key roles such as engineering, product development, and consumer-focused positions.
LegalZoom.com
LegalZoom.com saw a significant drop in its stock price, plummeting over 25% after the announcement of CEO Dan Wernikoff’s departure and a revision of its full-year revenue outlook. The company’s chairman, Jeffrey Stibel, has been appointed as the new CEO. LegalZoom.com now anticipates revenue between $675 million and $685 million for the year, lower than the previously projected range of $700 million to $720 million.
In contrast, Taiwan Semiconductor Manufacturing experienced a positive trend with a 3% increase in its chip stock following the release of its revenue results. The company reported T$207.87 billion in revenue for June, showing a 9.5% decrease from the previous month but a 32.9% surge from last year. Notably, its revenue for the first half of the year saw a substantial 28% rise compared to the same period in the previous year.
Carvana
Carvana, the online car seller, witnessed a 5% rise in its share price after receiving an upgrade from Needham, moving it from a hold to a buy rating. The firm highlighted Carvana’s potential to expand unit sales through enhanced customer experience and physical presence. Furthermore, peer used-car retailer CarMax also saw a significant increase of over 6% in its stock value.
Baidu
Baidu’s stock value climbed by 2.4% driven by the growing popularity of its Apollo Go robotaxi service in China. Recent reports indicated that Shanghai had been added to the list of cities allowing autonomous robotaxis without safety supervisors, fostering the adoption of such services. Residents can now book free rides through Baidu and other participating companies, contributing to the positive sentiment around Baidu’s stock.
On the flip side, Mastercard and Visa faced a decline in their stock prices, with Mastercard dropping by 3% and Visa declining by 1%. The downgrade from Bank of America, shifting their ratings from buy to neutral, attributed the decision to limited growth potential and valuation multiples for both companies. This shift impacted their performance in midday trading.
Manchester United’s stock saw a 2.4% increase following the release of its third-quarter earnings results for fiscal 2024. While the third-quarter revenue marked a decline from the previous year, the company is optimistic about achieving revenue close to the higher end of its guidance for the full year, estimated at 660 million euros. This positive outlook contributed to the upward movement in the stock price.
10x Genomics
In contrast to Manchester United’s success, 10x Genomics experienced a significant drop of around 13% in its stock value. The decline was triggered by Illumina’s acquisition of Fluent BioSciences, indicating a potential shift in leadership within the industry. This move had a ripple effect, with Illumina’s shares rising by over 4% in response to the acquisition news.
Teva Pharmaceutical Industries
Teva Pharmaceutical Industries observed a 5% increase in its stock value following an upgrade from Argus, shifting the rating from hold to buy. The pharmaceutical company’s robust pipeline was cited as a key factor driving the bullish sentiment. Additionally, UBS raised its price target acknowledging Teva’s growth potential, further boosting investor confidence.
Deckers, the footwear company, encountered a 5.8% decline in its share price after a research firm, M Science, released a pessimistic note on the company’s performance. The firm highlighted a notable slowdown in sales growth for Hoka and Ugg brands in June, leading to a downward revision in the fiscal first-quarter estimate for direct-to-consumer net sales to $297 million, down from $309 million.
Advanced Micro Devices
Wrapping up the market update, Advanced Micro Devices (AMD) witnessed a stock price surge of over 3% driven by its announcement of acquiring Silo AI, a European-based AI lab, in a deal valued at approximately $665 million. The acquisition is expected to be finalized in the latter half of 2024, signaling AMD’s commitment to expanding its AI capabilities and enhancing its market position.