A worker is seen wearing a mask while organizing merchandise at a Walmart store, in North Brunswick, New Jersey, July 20, 2020.
Eduardo Munoz | Reuters
Check out the companies making headlines in midday trading.
Zoom Video — Shares of the video conferencing company rallied more than 30% on the back of better-than-expected results for the previous quarter. Zoom reported earnings of 92 cents per share on revenue of $663.5 million. Analysts polled by Refinitiv expected a profit of 45 cents per share on revenue of $500.5 million. On a year-over-year basis, the company’s revenue more than quadrupled. Zoom also raised its earnings guidance for fiscal 2021.
Walmart — Walmart shares popped more than 5% after the retailer said it would launch its own membership service, Walmart+, later this month. The new service will feature unlimited free delivery and discounts of as much as 5 cents a gallon for fuel. Walmart was also the best-performing Dow component around midday.
Penn National Gaming — Penn shares soared more than 14% after one analyst called its investment in David Portnoy’s Barstool Sports a brilliant business alliance. Brokerage Craig-Hallum initiated equity coverage of Penn at a “Buy” rating and with a price target of $75, representing 46% upside from Monday’s close. “Barstool has a large, growing and cult-like audience, of which ~half are millennials and 62% already bet on sports,” the brokerage wrote. “Don’t Bet Against Portnoy.”
Tesla – Shares slid more than 3% after the electric vehicle company said it would raise up to $5 billion from a new stock offering. ”We intend to use the net proceeds, if any, from this offering to further strengthen our balance sheet, as well as for general corporate purposes,” the company said in a filing.
Eastman Kodak – Shares of the onetime photography giant jumped more than 27% after D.E. Shaw disclosed a 5.2% stake in the company. D.E. Shaw is a quantitative trading firm, meaning the purchase doesn’t necessarily represent a long-term bet on Kodak. Shares have been a roller-coaster ride since the government announced, and then sidelined a planned $765 million loan to help the company move into drug production.
Apple — Shares of Apple rose 2.5% after Bloomberg News reported the tech giant is planning to launch four new iPhone models with 5G cellular technology in October. The report, citing sources familiar with the matter, said Apple has asked suppliers to make 75 million to 80 million new iPhones as the company expects demand to be resilient.
Gogo — Shares of Gogo surged nearly 29% after the company announced that it was selling its commercial aviation business to Intelstat for $400 million. The deal also includes a 10-year network services agreement between the Intelstat and Gogo, which provides inflight internet services.
AbbVie — Shares of AbbVie fell more than 4% after House Oversight Committee decided to subpoena the drugmaker to seek documents on its blockbuster treatments, Humira and Imbruvica, as part of its investigation into drug pricing practices.
CNBC’s Fred Imbert, Pippa Stevens, Thomas Franck and Jesse Pound contributed reporting.
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