CrowdStrike, a cybersecurity stock, experienced a 4% drop after Guggenheim downgraded it to neutral from buy. This decision was based on the belief that the company may not come out unscathed from the recent global outage. This raises concerns about the future performance of the stock and its ability to recover from the setback.
Nvidia shares rose by 2% following reports that the company is preparing a version of its new Blackwell chips specifically for the Chinese market. These chips are said to be compatible with current U.S. export controls, indicating potential expansion opportunities for Nvidia. This represents a strategic move by the company to tap into new markets and diversify its revenue streams.
Bank of America’s Decline
Bank of America faced a decline of more than 1% in premarket trading after it was revealed that Warren Buffett’s Berkshire Hathaway sold a significant number of Bank of America shares. This move, which amounted to almost $1.5 billion, raises questions about the confidence of one of the largest shareholders in the bank. The sale could be seen as a profit-taking strategy amid the stock’s impressive performance so far this year.
Verizon’s Disappointing Quarter
Verizon reported quarterly revenue that fell short of estimates, leading to a 3% decline in the stock price. The company’s sales of $32.8 billion were below the expected $33.05 billion, indicating lower-than-anticipated performance. Despite adjusted earnings per share meeting estimates, the overall revenue miss impacted investor sentiment towards Verizon.
Abercrombie & Fitch’s Revival
Abercrombie & Fitch saw a more than 3% increase in its stock price after JPMorgan upgraded it to overweight from neutral. The upgrade was based on strong demand for the brand following improvements in marketing efforts in recent years. This indicates a positive outlook for the retail stock and its potential for growth in the coming quarters.
Truist Financial’s Challenges
Truist Financial faced a 1% decline in its stock price as second-quarter profits decreased from the previous year. This decline was driven by lower net interest income, reduced loan demand, and a loss on the sale of securities. Additionally, higher noninterest expenses further impacted the bank’s overall performance, signaling ongoing challenges for Truist Financial.
Apple’s shares rose by 1% after Wells Fargo raised its price target on the company to $275 from $225. This upward revision suggests a more than 20% potential upside for the stock. The increase in price target was driven by expectations that Apple’s upcoming earnings results will benefit from Apple Intelligence, leading to a significant upgrade cycle for the tech giant.