Stock Movers

On this episode of Stock Movers:

- SAP claimed the title of Europe’s most valuable public company, replacing Danish weight-loss drug maker Novo Nordisk. Shares of SAP, which have been powered by growing investor optimism over its cloud-based software, rose 1,6% on Monday, valuing the German company at about €314 billion ($340 billion).

- Elliott Investment Management called on RWE to ramp up buybacks after amassing a stake of close to 5% in the German utility. “We share the market’s disappointment with the lack of clarity regarding the company’s commitment to enhance shareholder returns,” Elliott said in a statement. RWE has been under pressure from investors due to its falling share price and its focus on a huge investment program.

- UBS cut the recommendation on Leonardo to neutral, preferring other stocks in the space for exposure to the defence supercycle theme. Peers Saab and Thales are raised to buy. UBS says Leonardo management’s actions, including the dividend increase and efforts to lower exposure to the Boeing 787, have improved business returns, but these efforts are now reflected in the share price. UBS says Thales’s guidance for 6%-7% organic sales growth per year in the long term is likely to prove conservative.

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On this episode of Stock Movers:

- Boeing won a contract to design and build the US’s next-generation stealth fighter jet, beating out rival Lockheed Martin for the multibillion dollar program aimed at preparing the military for possible conflict with China. The new sixth-generation fighter jet, whose overall cost is expected to run in the hundreds of billions of dollars, “will ensure that the USA continues to dominate the skies,” President Donald Trump said in an unveiling at the White House. Trump, the 47th president, said with a smile that it will be dubbed the F-47.

- FedEx shares tumbled after the parcel delivery company lowered its full-year guidance for a third consecutive quarter, citing inflation and uncertain demand for shipments. Adjusted earnings are now expected to be in the range of $18 to $18.60 per share this fiscal year, below the $18.95 average analyst estimate. FedEx also cautioned that revenue may be slightly down versus the prior year, compared to its previous expectation that sales would be roughly flat. FedEx is the latest US company to sound the alarm amid weakening consumer confidence and potential fallout from President Donald Trump’s escalating trade war. 

- Nike’s turnaround effort is hitting snags as the company tries to clear out old inventory while feeling the effects of a growing trade war. Shares fell in pre-market trading Friday as the sportswear maker signaled further declines in revenue and profitability from an ongoing merchandise reset that the company says is necessary to renew growth. Nike also expects gross margin to decline sharply in the current quarter from a year earlier, in part due to US tariffs on products from China and Mexico. Chief Executive Officer Elliott Hill, a longtime Nike executive who came out of retirement to take the top role in October, is looking to guide the company back to growth after a difficult year of falling sales and corporate layoffs. 

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On this episode of Stock Movers:

- Nike’s turnaround effort is hitting snags as the company tries to clear out old inventory while feeling the effects of a growing trade war.Shares fell in trading Friday as the sportswear maker signaled further declines in revenue and profitability from an ongoing merchandise reset that the company says is necessary to renew growth. Nike also expects gross margin to decline sharply in the current quarter from a year earlier, in part due to US tariffs on products from China and Mexico.
- FedEx Corp. shares tumbled after the parcel delivery company lowered its full-year guidance for a third consecutive quarter, citing inflation and uncertain demand for shipments.Adjusted earnings are now expected to be in the range of $18 to $18.60 per share this fiscal year, below the $18.95 average analyst estimate. FedEx also cautioned that revenue may be slightly down versus the prior year, compared to its previous expectation that sales would be roughly flat.
- Luminar Technologies shares rose after the maker of sensors for automobiles posted 4Q revenue that topped estimates and provided guidance for 2025, including guidance for revenue growth of as much as 20%. The quarter’s sensor sales increased, both to Volvo and adjacent-market customers; Luminar shipped more than 4,000 of its Iris sensors to customers and the vast majority of these sensors were shipped to Volvo, CFO Tom Fennimore said on the earnings call

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On this episode of Stock Movers:
- International Consolidated Airlines Group shares fall as much as 4.3% after British Airways hub Heathrow Airport was forced to close all day Friday after a nearby fire caused a power outage. Disruption is likely to last for several days, according to Jefferies.
- FedEx shares slipped after lowering its full-year guidance for the third consecutive quarter due to inflation and uncertain demand for shipments. The company cited a "very challenging" operating environment, including a shorter peak shipping season and severe weather.
- Nike's shares fell in pre-market trading as the company signaled further declines in revenue and profitability due to an ongoing merchandise reset and the impact of US tariffs on products from China and Mexico. The company is trying to clear out old inventory through heavy discounting, but inventory levels remain "elevated across all categories", and gross margin is expected to decline sharply in the current quarter.
- Madison Square Garden Sports Class A trading volume jumped to more than five times the 20-day average for this time of day. Madison Square Garden Sports rose 2.2% to $199, but the shares are down 12% this year.

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On this episode of Stock Movers:

 - FedEx shares slipped after lowering its full-year guidance for the third consecutive quarter due to inflation and uncertain demand for shipments. The company cited a "very challenging" operating environment, including a shorter peak shipping season and severe weather.

- Nike's shares fell in pre-market trading as the company signaled further declines in revenue and profitability due to an ongoing merchandise reset and the impact of US tariffs on products from China and Mexico. The company is trying to clear out old inventory through heavy discounting, but inventory levels remain "elevated across all categories", and gross margin is expected to decline sharply in the current quarter.

- Micron shares are moving down in premarket despite giving forecasts fiscal third-quarter revenue of about $8.8 billion, exceeding average analyst estimates of $8.55 billion. The company's strong demand is driven by components used in data center machines for artificial intelligence software, with data center revenue tripling from last year.

- NIO stock dropped on Friday after the electric vehicle maker missed Wall Street's revenue forecast and issued disappointing guidance. NIO reported fourth-quarter revenue of 19.7 billion Chinese yuan ($2.70 billion), as the number of EVs it delivered climbed 45% from a year ago to 72,689. Analysts were expecting revenue of $2.79 billion, according to FactSet consensus estimates. Guidance also looked soft.

- Lockheed Martin share are up with the White House set to announce the winner of the contest to build the next-generation fighter jet on Friday, choosing between Lockheed Martin and Boeing. The announcement will be made nearly two years after the Air Force issued a formal request for proposals for the Next Generation Air Dominance manned fighter, with plans to spend up to $16 billion on research and development through 2028.

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On this episode of Stock Movers:

- London’s Heathrow airport will close all day Friday after a nearby fire caused a major power outage, throwing one of the world’s busiest airports and the travel plans of hundreds of thousands of people into chaos. Home to airlines including IAG SA’s British Airways and Virgin Atlantic, Heathrow handles more than 1,400 flights and 200,000 passengers every day, and about 40 aircraft take off every hour at peak times on average.The airport, by far the biggest in the UK, is a major hub for trans-Atlantic travel as well as connections into the Middle East and Asia. While London has other airfields, including Gatwick and the smaller Stansted near Cambridge, Heathrow handles the lion’s share of air connections, and an outage on the current scale is unprecedented for the airfield.

- Douglas shares fall as much as 23%, the most ever and to a record low after the German beauty product retailer issued a profit warning, citing increasing competition and a consumer slowdown in France and Germany, its two biggest markets.

- J D Wetherspoon shares slide as much as 12%, hitting a two-year low, after Shore Capital said it expects consensus estimates to fall after the pub chain’s results came in softer than anticipated in the first half. Jefferies said it sees limited scope for its valuation multiple to expand due to concerns circling around the UK consumer.

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On this episode of Stock Movers: 

- Accenture shares tumbled after the consultancy said its US government work has slowed amid Elon Musk’s cost-cutting push. The company, with nearly 800,000 employees around the world, said new procurement actions had decreased amid President Donald Trump’s spending crackdown, hurting its sales and revenue. Accenture Chief Executive Officer Julie Sweet said on a call discussing earnings that federal services accounted for about 8% of its global revenue and about 16% of its Americas revenue in the 2024 fiscal year. 

- Darden shares rise as much as 7.8%, the most intraday since Dec. 19, after management said on the conference call that it’s implied fourth-quarter guidance includes comparable sales growth above 3%, which is ahead of the consensus view of 2.3% growth. The annual forecasts also imply 4Q total sales of $3.23 billion to $3.26 billion, and adjusted EPS between $2.88 and $2.95; these compare to Bloomberg consensus estimates of $3.23 billion, and $2.93, respectively. 

- QXO has agreed to acquire Beacon Roofing Supply Inc. in a deal that values the distributor of roofing, waterproofing and exterior products at about $11 billion including debt. The agreement ends months of back-and-forth between the companies and avoids a full-blown hostile takeover battle. QXO will pay $124.35 per share in cash for Herndon, Virginia-based Beacon after a previous offer of $124.25 was rebuffed. The price represents about a 26% premium to Beacon’s closing price on Nov. 15, the last trading day before news of takeover interest first emerged.

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On this episode of Stock Movers: 
- Tesla Inc. recalled all the Cybertrucks it produced and sold in the first 15 months it’s been on the US market over a safety issue it’s having trouble resolving.The carmaker estimates that 1% of the 46,096 pickups it’s calling back have a defect, according to a recall report filed with the US National Highway Traffic Safety Administration. Pieces of steel trim along the exterior of the Cybertruck are joined to the vehicle by an adhesive that’s “susceptible to environmental embrittlement,” the company said.
- Nvidia Corp. aims to spend several hundred billion dollars to procure US-made chips and electronics over the next four years, the Financial Times reported.Chief Executive Officer Jensen Huang told the FT that the latest chips designed by his company, and Nvidia-powered servers for data centers, can now be produced at US-based factories operated by Taiwan Semiconductor Manufacturing Co. and Foxconn Technology Group. It marked a major step forward in supply chain resilience for the Santa Clara, California-based chipmaker, Huang added.
- Darden shares rise the most intraday since Dec. 19, after management said on the conference call that it’s implied fourth-quarter guidance includes comparable sales growth above 3%, which is ahead of the consensus view of 2.3% growth. The annual forecasts also imply 4Q total sales of $3.23 billion to $3.26 billion, and adjusted EPS between $2.88 and $2.95; these compare to Bloomberg consensus estimates of $3.23 billion, and $2.93, respectively. Management said 3Q comp. sales started with a negative gap to the industry average in December, but turned positive in January and February, with both months exceeding the industry benchmark by “well over 100 basis points,” adding that for the first three weeks of 4Q, Darden is seeing further improvement in sales trends.

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On this episode of Stock Movers:
- Nvidia Corp. aims to spend several hundred billion dollars to procure US-made chips and electronics over the next four years, the Financial Times reported.Chief Executive Officer Jensen Huang told the FT that the latest chips designed by his company, and Nvidia-powered servers for data centers, can now be produced at US-based factories operated by Taiwan Semiconductor Manufacturing Co. and Foxconn Technology Group. It marked a major step forward in supply chain resilience for the Santa Clara, California-based chipmaker, Huang added.
- Five Below shares rose as much as 13% in premarket trading after the discount retailer reported fourth-quarter results that beat expectations. Still, analysts were cautious about the long-term impact of tariffs, with those at Morgan Stanley and Barclays cutting their targets. “Until there is more clarity on the tariff front, we see a balanced risk/reward at current levels,” the analysts wrote in a note.
- Piper Sandler upgrades Carvana and ACV Auctions to overweight from neutral as the broker turns bullish on vehicle technology stocks, saying they can can grow despite macro unease and higher tariffs.Analyst Alexander Potter notes that “most used car transactions don’t span international borders, and demand is relatively stable, regardless of the macro.”

See omnystudio.com/listener for privacy information.

On this episode of Stock Movers:
- Tesla shares dropped on the news it's recalling all the Cybertrucks it produced and sold in the first 15 months it was on the market in the US over a safety issue it’s having trouble resolving. The carmaker estimates that 1% of the 46,096 pickups it’s calling back have a defect, according to a recall report filed with the US National Highway Traffic Safety Administration. Pieces of steel trim along the exterior of the Cybertruck are joined to the vehicle by an adhesive that’s “susceptible to environmental embrittlement,” the company said.
- Nvidia shares rose on a report from the Financial Times that it plans to spend several hundred billion dollars to procure US-made chips and electronics over the next four years. Chief Executive Officer Jensen Huang told the FT that the latest chips designed by his company, and Nvidia-powered servers for data centers, can now be produced at US-based factories operated by Taiwan Semiconductor Manufacturing Co. and Foxconn Technology Group. It marked a major step forward in supply chain resilience for the Santa Clara, California-based chipmaker, Huang added.
- Five Below shares are moving after it forecast net sales for the first quarte and the guidance beat the average analyst estimate. The company sees net sales $905 million to $925 million, versus the estimate of $897.8 million.

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