Bank of America’s stock took a hit, falling 2% after Warren Buffett’s Berkshire Hathaway revealed it was further reducing its stake in the bank. This news comes after a 12-day selling streak that started in mid-July, with the conglomerate selling 13.9 million more shares for $550.7 million over the past three trading days. Berkshire’s stake now stands at 11.9%, signaling a lack of confidence in the bank’s performance.
Chinese electric vehicle maker XPeng saw its U.S.-listed shares drop by approximately 7% following its issuance of third-quarter revenue guidance that fell short of expectations. The company’s forecasted revenue range of CNY 9.1 billion to CNY 9.8 billion was lower than the FactSet consensus estimate of CNY 10.40 billion, leading to investor disappointment.
In contrast, cybersecurity company Palo Alto Networks experienced an 8% jump in its stock price after beating Wall Street’s fiscal fourth-quarter estimates. This positive performance marked the stock’s best day in nearly a year and made it the top performer on the S&P 500 on that particular Tuesday. Additionally, the company provided strong guidance for the fiscal first quarter and year, further boosting investor confidence.
Home improvement retailer Lowe’s faced a 1% decline in its stock price as its second-quarter revenue fell short of expectations. With reported revenue of $23.59 billion compared to analysts’ projected $23.91 billion, investors were less optimistic about the company’s future performance. Furthermore, Lowe’s also revised its full-year forecast for earnings per share and sales, contributing to the negative sentiment surrounding the stock.
Aerospace giant Boeing experienced a significant drop of approximately 4.8% in its stock price after grounding its 777X test fleet due to the discovery of key structural damage. This development raised concerns about the company’s production processes and future outlook, leading to a decrease in investor confidence.
Shares of Paramount Global slipped nearly 2% following reports of competing bids for the acquisition of National Amusements. Media executive Edgar Bronfman Jr. made a rival bid, challenging the agreement that involved Skydance Media and its partners buying Paramount. The uncertainty surrounding the ownership of the company contributed to the stock’s decline.
On a positive note, drugmaker Eli Lilly saw its stock price rise by approximately 3% after announcing positive results from a late-stage trial of its weight loss drug. The trial demonstrated that the drug could minimize the risk of diabetes, showing potential for future growth and innovation in the company’s product pipeline.
Finland-based sports and outdoor company Amer Sports experienced a significant rally of 12.5% following an earnings and revenue beat. The company also raised its full-year guidance, indicating strong performance and market confidence in its future prospects.
Hawaiian Holdings saw its stock price surge by 11.6%, while Alaska Air’s stock edged 0.7% lower after the U.S. Department of Justice cleared the merger of the two companies. The $1.9 billion deal now requires approval from the U.S. Department of Transportation before it can be finalized, leading to mixed investor reactions.
Electronic manufacturing company Fabrinet experienced a significant increase of over 16% in its stock price after reporting better-than-expected quarterly earnings and revenue. The company’s fourth-quarter results surpassed analyst estimates, with adjusted earnings of $2.41 per share on revenue of $753 million, signaling strong performance and market confidence in the company’s growth trajectory.