Morning Movers
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SNAP.NY 0.71%
Snap Inc – Impressive reversal off yesterday’s lows as the company reported a better than expected daily active user number up 18% in its latest quarter. The company posted sales growth of 38% in Q1, forecast Q2 revenue growth between 20% to 25%, Snap said it’s more concerned with its revenue, even though it increased 38% year over year to $1.06 billion. The company said it was on track to hit 44% growth since Q1 2021 but noted that after Russia invaded Ukraine on February 24, many advertisers paused their campaigns. At least 7 brokerages cut PT on stock to between $34 and $77, citing co’s conservative forecast amid macro headwinds.

GPS.NY -15.68%
Gap Inc – Shares are set to open at a 2 year low, as the apparel company lowered its Q1 outlook on execution challenge at Old Navy. The company pointed to “macro-economic dynamics” as its main headwind sending shares of the retailer down 12% in extended trading. Gap also said the head of its Old Navy brand, Nancy Green, was leaving the company this week and the company’s Chief Executive Officer Sonia Syngal would lead the team until a successor gets hired. Gap now expects first-quarter sales to decline in the low to mid-teens percentage range from its prior guidance of mid to high-single-digit year-over-year declines. The retailer will report results on May 26.

NFLX.NQ -0.35%
Netflix Inc – Held up well in a weak market Thursday, multiple additional cautionary notes from analysts on the stock again this morning.

TSLA.NQ 0.74%
Tesla Inc – Red to green premarket after giving back its post-earnings rally yesterday. Multiple PT increases on the stock this morning including DB to $1250 from $1200 and Oppenheimer to $1291 from $1103. Meanwhile Cathie Wood’s Ark Invest sold nearly $100m worth of its Tesla holdings post earnings yesterday.

TWTR.NY 0.47%
Twitter Inc – Elon Musk on Thursday said he has lined up $46.5 billion in debt and equity financing to buy Twitter and is considering taking his offer directly to shareholders, a filing with U.S. regulators showed. Musk himself has committed to put up $33.5 billion, which will include $21 billion of equity and $12.5 billion of margin loans against some of his Tesla shares to finance the transaction.

CLF.NY 7.00%
Cleveland-Cliffs – The steel maker Cleveland-Cliffs report much better-than-expected first-quarter sales and earnings. Prices for Cliffs steel rose even as spot prices for steel dropped in the first quarter. Posted adjusted earnings per share of $1.71 from $6 billion in sales. Wall Street was looking for EPS of $1.46 from $5.4 billion in sales. Coming into Friday trading, Cliffs shares have risen about 36% year to date.

AIRLINE.STOCKS 1.82%
Airlines – Back on watch looking to extend the recent “travel” rally, better than expected demand forecasts from UAL and AAL lifted the entire sector Thursday. JP Morgan raised its rating on both today, going to neutral from underweight on AAL saying that the leverage will benefit the company’s stock price in a rapid demand recovery. Also increased UAL to overweight from underweight, citing the early stages of a business and international travel demand recovery that should benefit the company comparatively more than other leisure-focused airlines.

MITQ.AM 40.00%
Moving Image Technologies – Sharply higher after announcing a new strategic alliance with SNDBX in a move to enter the gaming and eSports market. MITQ says partnership to offer theater operators the chance to monetize excess auditorium capacity and increase concession sales by promoting e-Sports and amateur gaming leagues.

VLON.NQ 51.33%
Vallon Pharmaceuticals – Higher after announcing a review of strategic alternatives.

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