Watch us on YouTube Live at 8:30AM EST
Walmart Inc – Among the most actively traded stocks premarket, tumbling after cutting its full-year profit forecast and also signaling a bigger knock to the retail giant’s profit margins from surging costs of everything from fuel to labor. Reported net income attributable to the company slumped nearly 25% to $2.05 billion in the first quarter ended April 30. The company said it expects fiscal 2023 earnings per share to fall about 1%, compared to its previous forecast of a mid-single digit increase. Walmart’s total revenue for the first quarter rose 2.4% to $141.57 billion, beating analysts’ average estimate of $138.94 billion.
Chinese ADRs – Higher as a group this morning on multiple positive catalysts, JD shares are up 10% after the ecommerce company easily beat estimates with its latest quarterly results. Separately, after the close Monday J.P. Morgan upgraded many China-based internet companies, including JD to neutral from underweight, as significant uncertainties facing the sector begin to fade in the wake of recent regulatory announcements. Positivity in the group also came as Shanghai reported no new covid cases for the third consecutive day Tuesday. JD, BABA, BILI, BIDU, NIO, XPEV, DIDI
Airline Stocks – Trading higher premarket, Monday after the close United Airlines raised its revenue estimate for the current quarter despite trimming capacity, underscoring a booming travel demand. The company now expects total revenue per available seat mile to be up 23%-25% from the same period in 2019, up from a prior forecast of 17%. United also raised its fuel bill estimate for the quarter by 17%. UAL, AAL, DAL, LUV
Advanced Micro Devices – Solidly higher this morning on a Piper Sandler upgrade to “overweight” from “neutral” who said the company’s mid-to-long term catalysts remain intact. The brokerage identifies catalysts for the company such as strong server trends, strong semi-custom trends, commercial PC growth offsetting consumer PC exposure and Xilinx being impactful to growth.
Homedepot – Back above $300 premarket after it increased its full-year profit forecast as home improvement retailers benefit from higher prices and steady demand for tools and building materials. Home Depot now expects comparable sales to increase about 3% in fiscal 2022, compared with its previous forecast of a slight positive growth. The company reported same-store sales rose 2.2% in the first quarter ended May 1, compared with analysts’ estimates of a 2.7% decline. Home Depot earned $4.09 per share in the reported quarter, beating estimates of $3.68.
Twitter Inc – Back on watch after Elon Musk said his $44 billion offer would not move forward until Twitter shows proof that spam bots account for less than 5% of its total users, hours after suggesting he could seek a lower price for the company. After putting his offer on hold last week pending information on spam accounts, Musk said he suspected they make up at least 20% of users – compared with Twitter’s official estimates of 5%. Separately, Twitter said it was committed to completing Elon Musk’s $44-billion deal at the agreed price and terms. The deal is subject to the approval of Twitter stockholders and is expected to close in 2022.
Citigroup – Up sharply after Berkshire Hathaway’s latest 13F filing showed it took a nearly $3 billion stake in the bank during the first quarter. The move comes a quarter after it dumped its position in WFC, the company also added a $2.61 billion bet on Paramount and a nearly $390 million stake in Ally Financial Inc.
NU Holdings – The Warren Buffett-backed company’s Q1 revenue more than tripled to $877 million, well above consensus estimates of $624 million, according to data from Refinitiv. NU also cut its losses to $45.1 million from $49.4 million a year ago and added 5.7 million new clients this quarter while its monthly average revenue per active client rose to $6.7, up $3.2 from the previous year. On average, cost per client decreased to 70 cents per month from 80 cents a year ago.
Bird Global – Reported a 48% rise in Q1 revenue to $38 mln and said it now expects FY22 rev between $275 mln and $325 mln, representing ~50% y-o-y growth at midpoint; the company also announced new cost saving initiatives to accelerate its path to profitability. Net income for Q1 was $10.4 mln, compared to net loss of $76.2 mln a year earlier.