Stocks making the biggest moves midday: Rocket Companies, Lyft, Michaels, Ambarella & more

Shoppers enter a Michaels store in Miami, Florida.

Scott McIntyre | Bloomberg | Getty Images

Check out the companies making headlines in midday trading. 

Rocket Companies – The online mortgage provider’s stock dropped close to 20% after a surprise rally in the previous session as analysts urged caution in the heightened speculative trading in the shares. The stock soared more than 70% Tuesday for its best day ever on no apparent news. Rocket is one of the most heavily shorted names by hedge funds, which may have made it attractive to the Reddit trading crowd.

Lyft – The ride-sharing company’s shares climbed more than 8% after the company said the last week of February was its best week in terms of volume since pandemic lockdowns began. Lyft revised its adjusted EBITDA loss forecast for the first quarter due to an increase in rider volume last month. JPMorgan also reiterated its call on the stock as a top pick, noting it was bullish on the company as coronavirus lockdowns ease.

Michaels – The arts and crafts retailer saw its shares soaring 22% after it said Wednesday it agreed to be taken private in a $3.3 billion deal with Apollo Global Management. Apollo will acquire all outstanding Michaels stock for $22 per share in a tender offer. That represents a 47% premium to the closing price on Friday, the day before speculation of the deal was publicized in the media. The companies value the transaction at $5 billion.

Norwegian Cruise Line, American Airlines – A number of classic reopening plays were on the rise after President Joe Biden said the U.S. will have a large enough supply of coronavirus vaccines to inoculate every adult in the nation by the end of May. American Airlines popped more than 3%, while Carnival and Norwegian Cruise Line jumped 6% and more than 7%, respectively.

Ambarella – The semiconductor company’s stock jumped more than 6% following Ambarella’s fourth quarter earnings. The company reported revenue of $62.1 million during the period, which topped the expected $58.1 million, according to estimates from FactSet. Ambarella said demand for its products accelerated over the last year, with more than 175 unique customers purchasing engineering parts or development systems.

Wendy’s – The restaurant stock slid more than 5% after Wendy’s missed estimates on the top and bottom lines for the fourth quarter. The company reported 17 cents in earnings per share on $474 million of revenue. Analysts surveyed by Refinitiv had penciled in 18 cents per share and $476 million of revenue.

Nordstrom – Shares of the retailer fell about 4% despite beating Wall Street estimates on the top and bottom lines for its fourth quarter. The company ended the quarter with higher-than-typical inventory, however, leading some analysts to raise concerns about margins in the near term.

FuboTV — Shares of the streaming service sank about 13% after reporting a big loss last quarter. FuboTV lost $2.47 per share, and it is unclear if that was comparable to analysts’ estimates. Revenue, however, came in at $105.1 million, higher than the forecast $95.1 million, according to Refinitiv.

Dollar Tree – Shares of the discount retailer advanced more than 4% after Dollar Tree beat earnings estimates for the fourth quarter. The company earned $2.13 per share, compared to the Street consensus for $2.11. Revenue, however, missed expectations. The company reported sales of $6.77 billion, slightly short of the $6.79 billion analysts surveyed by Refinitiv were expecting.

DraftKings — Shares of the sports betting company rose less than 1% after announcing a partnership with DISH Network to integrate DraftKings’ sportsbook and daily fantasy experiences into the Hopper TV platform, with potential future expansion to Sling TV and Boost Mobile. Shares of DISH Networks also rose more than 2%.

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