Signage is seen at the Alibaba Group headquarters during the Singles Day Global Shopping Festival 11.11 in Hangzhou, Zhejiang Province, China, November 11, 2020.
Aly Song | Reuters
Here are the stocks that are making headlines in the midday trade.
Ulta Beauty – The shares of the cosmetics company fell more than 6% after reporting same-store sales for the entire year and revenue guidance below Wall Street estimates. The company said it sees same-store sales between 15% and 17% in the year, while analysts expected 20.3%, according to Refinitiv.
Vail Resorts – The stock of ski resorts increased by almost 3.8% after Vail’s profits for the second fiscal quarter exceeded expectations. The company earned $ 3.62 per share against $ 2.31 expected by analysts, according to FactSet. The company also said it saw results continue to improve in February, which will be included in the next quarterly report.
Aegion Corp. – The oil and gas pipeline company Aegion saw its shares rise more than 12%. It is the subject of a bidding process between New Mountain Capital and Apollo Global, two private equity companies. Apollo made an offer for Aegion between $ 26 and $ 30 per share, according to a Bloomberg report, surpassing the deal Aegion struck with New Mountain last month at $ 26 per share.
Netflix – Shares of the streaming service fell 1.8% after Netflix announced it would test a lawsuit against sharing passwords. Competitive streaming services have also announced subscriber guidance for the coming years, putting pressure on Netflix to avoid competition. Research firm Magid estimated that about a third of Netflix users share their passwords.
Alibaba – Shares in the e-commerce giant fell 3.8% after The Wall Street Journal reported that Alibaba could face a record fine from China’s antitrust regulators. According to people with knowledge of the matter, the fine could exceed the $ 975 million that Qualcomm paid in 2015.
DocuSign – The software company’s shares fell about 6%, despite a fourth-quarter earnings report that exceeded expectations on the top and bottom lines. DocuSign reported 37 cents of adjusted earnings per share on $ 430.9 million in revenue. Analysts consulted by Refinitiv had scored 22 cents a share and $ 407.6 million in revenue. JMP Securities praised the quarter in a note to customers, but stressed that revenue growth slowed quarter after quarter.
Novavax – Novavax shares jumped nearly 6% on the midday trading session after the company said its Covid-19 vaccine was 96% effective in preventing cases caused by the original version of the coronavirus, bringing the drugmaker closer to the regulatory approval. The vaccine was also about 86% effective in protecting against the most contagious virus variant first discovered and now prevalent in the UK.
Poshmark – The shares of the online retailer of second-hand goods fell about 20% after the publication of a forecast for the current quarter that fell short of analysts’ estimates. The company, however, reported revenue that exceeded analysts’ estimates.
– CNBC Maggie Fitzgerald, Pippa Stevens, Jesse Pound and Richard Mendez contributed to the report.