Midday Trading Highlights: Key Moves in the Stock Market
Delta Air Lines Faces Challenges
Delta Air Lines experienced a significant drop of nearly 9% as the airline revised its revenue and earnings forecasts for the first quarter. The adjustments stemmed from a decline in domestic demand and ongoing macroeconomic uncertainties. Delta now anticipates a revenue increase of only 5% year-over-year, a downgrade from earlier expectations of 6% to 8%. Furthermore, the airline has lowered its adjusted earnings forecast to between $0.30 and $0.50 per share, down from a prior guidance of $0.70 to $1.00.
Verizon Communications’ Subscriber Growth Warning
Verizon Communications saw its stock decline by nearly 7% after announcing that wireless subscriber growth is set to weaken in the first quarter due to competitive off-season promotions. Despite this, the company remains optimistic about achieving single-digit growth in annual phone upgrades, anticipating a market rebound in 2025.
Southwest Airlines Reports Strong Stock Surge
In contrast, Southwest Airlines saw a surge of 10% in its stock price after unveiling plans to start charging fees for checked bags and introducing a basic economy fare. These initiatives were influenced by the advocacy of activist investor Elliott Investment Management.
GE HealthCare Technologies Receives Positive Upgrade
GE HealthCare Technologies’ stock rose by 2.3% following an upgrade from Goldman Sachs, which changed its investment stance from neutral to buy. The firm also increased its 12-month price target, citing improved growth prospects, particularly in relation to the outlook for the Chinese market.
Asana’s Stock Tumbles
Asana experienced a drastic decline of nearly 25% as CEO Dustin Moskovitz announced his retirement while also providing disappointing forecasts. The company now expects first-quarter revenue to range between $184.5 million and $186.5 million, which falls short of the consensus estimate of $191 million. For the full year, Asana projects revenue between $782 million and $790 million, below analyst expectations of $803.5 million.
Oracle’s Stock Declines Amid Disappointing Earnings
Oracle’s stock fell more than 4% after reporting fiscal third-quarter earnings that missed expectations. The tech giant reported adjusted earnings per share of $1.47, while analysts had anticipated $1.49.
Kohl’s Faces Significant Stock Drop
Kohl’s shares plummeted by 22.2% following a weak fourth-quarter report and disappointing future guidance. The retailer now projects earnings per share for the current fiscal year between $0.10 and $0.60, markedly lower than analyst expectations of $1.23. Additionally, Kohl’s forecasts a net sales decline of 5% to 7%, compared to analysts’ predictions of a smaller 1.6% dip.
Reddit Experiences Notable Stock Growth
Conversely, Reddit saw its stock price increase by around 11%. Thanks to a report from Loop Capital, which identified Reddit as having significant upside potential relative to other stocks in the coverage universe, there is optimism that the recent pullback offers a strong buying opportunity.
Teradyne’s Forecasts Cause Stock Decline
Teradyne, known for its automated test equipment, saw a steep drop of 17.5% in its stock value. The company lowered its revenue guidance ahead of its Investor Day, now expecting flat to down 10% revenue in the second quarter, diverging from earlier forecasts of a 5% to 10% growth, citing uncertainties from tariffs and trade restrictions.
