Stocks making the biggest moves midday: Bed Bath & Beyond, Carnival, Upstart and more
Check out the companies making headlines in midday trading.
Bed Bath & Beyond — Shares of the retailer plummeted about 21% after the company missed revenue estimates and posted a wider-than-expected loss in the recent quarter. Bed Bath & Beyond also announced it is replacing CEO Mark Tritton.
Carnival — Shares of the cruise line operator fell more than 14% after Morgan Stanley cut its price target on the stock roughly in half and said it could potentially go to zero in the face of another demand shock, given Carnival’s debt levels. The call dragged other cruise stocks lower. Royal Caribbean and Norwegian Cruise Line Holdings each dropped more than 10%.
Upstart — Shares of the AI lending platform dropped roughly 10% after Morgan Stanley downgraded the stock to underweight from equal weight. The Wall Street firm said rising interest rates and a troublesome macroenvironment is hurting Upstart’s growth trajectory.
Bath & Body Works — The retailer’s stock fell nearly 8% after JPMorgan downgraded shares to neutral from overweight. The firm lowered its second quarter and full-year earnings estimates for Bath & Body Works after reducing second quarter average unit retail estimates by 4% year over year.
Teradyne — Shares of the semiconductor testing company slid 6% following a downgrade to neutral from buy from Bank of America. The firm said Teradyne’s exposure to Apple could ding the stock in the near term, given uncertainty around iPhone demand.
Tesla — Shares declined about 4% following a Wall Street Journal report that said Tesla is closing its San Mateo, California office and laying off 200 workers. CNBC confirmed the report.
General Mills — The stock jumped 5.7% after General Mills reported an earnings beat on the top and bottom lines. Still, the cereal company’s full-year profit estimates were weaker than expected, because of a consumer shift to cheaper brands.
O’Reilly Automotive — The auto parts company traded up more than 1% following an upgrade to buy from neutral from D.A. Davidson. The firm said O’Reilly is their “preferred way” to play the auto parts theme compared to AutoZone and Advance Auto Parts. Auto parts companies, which typically sell non-discretionary products, are expected to weather downturns better than other retailers.
McDonald’s — Shares climbed 1.5% following an upgrade to overweight by Atlantic Equities. The firm said hamburger chain will hold out as consumer spending slows.
Goldman Sachs — Shares rose 1.3% after Bank of America upgraded Goldman Sachs to a buy from a neutral rating and said the bank will thrive even in an economic slowdown.
— CNBC’s Yun Li, Tanaya Macheel and Samantha Subin contributed reporting
