Stock Market Update: Companies Making Headlines Today
Eli Lilly’s Shares Plummet Over Disappointing Drug Demand
Eli Lilly saw a more than 7% drop in its shares as the drugmaker announced that demand for its weight loss and diabetes drugs fell short of expectations. The company now predicts full-year 2024 revenue to be around $45 billion, lower than previously anticipated.
Boeing’s Challenges in 2024
Boeing experienced a more than 2% decrease in its shares after revealing a significant decrease in airplane deliveries for 2024, with only about 348 deliveries compared to Airbus’s 766. This gap puts Boeing at a disadvantage in the aerospace industry.
Applied Digital Receives $5 Billion Investment
Applied Digital’s digital infrastructure stock surged over 6% following news of a $5 billion investment from Macquarie in its artificial intelligence data centers. This investment includes a 15% stake in Applied Digital’s high-performance computing segment.
Hesai’s Stock Upgrade
Chinese automaker supplier Hesai’s stock rose 8% after Goldman Sachs upgraded it to a buy rating. Analysts believe the market has underestimated the potential of Hesai’s new product cycle, making it an attractive investment.
Signet Jewelers Faces Challenges
Signet Jewelers, parent company of Kay Jewelers and Zales, saw a 26% decrease in shares after lowering fourth-quarter guidance. Weak holiday sales at lower price points contributed to this decline.
KB Home Reports Strong Earnings
KB Home’s homebuilding stock rose 3% following a fourth-quarter earnings beat. The company reported higher per-share earnings and revenue than analysts had predicted.
United Rentals Acquires H & E Equipment Services
H & E Equipment Services surged over 105% after United Rentals announced its acquisition. United will pay $92 per share in cash, valuing H & E at around $4.8 billion. United Rentals also saw a 3% increase in its shares.
Instacart’s Promising Future
Instacart, the grocery delivery company, rose over 1% after receiving a buy rating upgrade from BTIG. The firm highlighted strong order growth as a reason for the optimistic outlook.
Celanese’s Positive Outlook
Chemical manufacturer and supplier Celanese jumped 5% following a double upgrade to buy from Bank of America. The bank cited favorable valuation and expected demand recovery for most products as reasons for the upgrade.
Contributing reporting by Alex Harring, Samantha Subin, Yun Li, Lisa Kailai Han, and Michelle Fox.