Spirit also forecast second-quarter revenue between $1.2 billion and $1.34 billion, below a FactSet estimate of $1.46 billion.
Paramount — Shares popped 3.3% following a report that the owner of Paramount Pictures and CBS Entertainment Group began formal acquisition negotiations with a group led by Sony Pictures Entertainment and Apollo .
Elsewhere, Warren Buffett said over the weekend that he sold the entire Berkshire stake in Paramount at a loss.
United States Steel — The Pittsburgh-based steelmaker saw its shares rise more than 2% after Morgan Stanley upgraded it to overweight from equal weight.
U.S. Steel shares have room to rise due to internal improvements, even if the Nippon Steel buyout deal collapses, Morgan Stanley said in a note.
Bausch + Lomb — Shares of the eye health stock popped 4.4% on the back of a Morgan Stanley upgrade to overweight from equal weight.
Morgan Stanley said the market is likely overlooking the Canadian-based company’s progress on improving core profit margins.
Morgan Stanley downgraded the intimate apparel maker to underweight due to expectations for negative earnings per share revisions.
View the companies grabbing news during midday trading here.
Following the release of the first-quarter results and the annual shareholders meeting on Saturday, Berkshire Hathaway’s Class A shares saw an increase of 0.6 percent. Although its cash holdings are getting close to $200 billion, Berkshire reported a 39% annual increase in operating profit.
Micron Technology, a semiconductor company based in Boise, Idaho, increased 40.5 percent after receiving an upgrade from Baird to outperform from neutral. The analyst mentioned price, increasing demand for high-bandwidth memory, dynamic random-access memory, or DRAM, pricing, and gradually improving trends in DRAM.
Spirit Airlines: The budget airline dropped 9% following its first-quarter loss of $1.46 per share, which was more than analysts’ FactSet consensus estimate of a $1.45 loss per share. Revenue was as anticipated. A FactSet estimate of $1.46 billion was exceeded by Spirit’s second-quarter revenue projection of between $1.2 billion and $1.34 billion.
Warren Buffett announced over the weekend that he sold the entire Berkshire stake in Paramount at a loss. Meanwhile, shares of Paramount—which are owned by CBS Entertainment Group and Paramount Pictures—rose 3.3% in response to news that the company had started formal acquisition negotiations with a group headed by Sony Pictures Entertainment and Apollo dot.
United States Steel: After Morgan Stanley upgraded the Pittsburgh-based steelmaker to overweight from equal weight, its shares increased by more than 2 percent. I. s. Morgan Stanley stated in a note that even if the Nippon Steel buyout deal falls through, steel shares still have room to rise because of internal improvements.
Medical Properties Trust — Following the filing for Chapter 11 bankruptcy by a significant tenant of the company, the physician-owned hospital operator Steward Health Care, shares fell by almost 7%.
EHang Holdings — The stock of autonomous aircraft saw a 9 percent increase after Morgan Stanley began covering the company with an overweight rating, describing it as “primed for takeoff” in light of the increasing regulatory and governmental support in China.
Tyson Foods: Following the release of its fiscal second quarter revenue report, which came in below StreetAccount’s polled analysts’ expectations of $13.15 billion, the food processor’s shares fell 6%. Along with this, Tyson revealed earnings of 62 cents per share, exceeding forecasts of 39 cents per share.
Bausch + Lomb — Following a Morgan Stanley upgrade to overweight from equal weight, shares of the eye health company surged 4 percent. According to Morgan Stanley, the market is probably not taking into account the Canadian company’s gains in core profit margins.
Coinbase — After Barclays raised its price target, signaling less decline in shares, the cryptocurrency stock increased by 2.5 percent. The bank took this action in response to Coinbase’s better-than-expected earnings last week.
Li Auto—After announcing brisk orders for its L6 cars, the Chinese manufacturer of electric vehicles saw a 23% increase in shares. Orders for L6 vehicles topped 41,000 between April 18 and May 5, according to a Weibo post.
Victoria’s Secret: Following a roughly 0.4 percent opening decrease, shares of Victoria’s Secret were up nearly 2 percent. Aversion to negative revisions in earnings per share led to Morgan Stanley downgrading the maker of intimate apparel to underweight. The Wall Street bank lowered its price objective as well.
Reporting was contributed by Hakyung Kim, Sarah Min, Jesse Pound, Alex Harring, and Samantha Subin from CNBC.
