Stocks making the biggest moves midday: Roku, United Airlines, Lemonade, Zoom & more

Jim Cramer on why Zoom shares remain difficult to value
Jim Cramer on why Zoom shares remain difficult to value

Here are the companies making headlines in midday trading.

Roku – Shares of the streaming device maker slid 2.8% after KeyBanc downgraded the company to a "sector weight" rating. The firm said that after the stock's roughly 40% gain in the last month, the "positive fundamentals appear reflected in [the] share price." KeyBanc said it feels more confident about Netflix, on which it has an overweight rating.

Lemonade — Shares of the newly public insurance company slumped 8.2% after Credit Suisse initiated coverage of the stock with an underweight rating. The investment firm said in a note that Lemonade will "need to significantly improve its retention and in turn its customer acquisition expense ratio efficiency to support current stock price levels."

United Airlines — Shares of the airline company fell 3.8% on the back of disappointing third-quarter results as the travel industry continues to reel from the coronavirus pandemic. United reported a loss of $8.16 per share on revenue of $2.49 billion. Analysts expected a loss of $7.53 per share on revenue of $2.5 billion, according to Refinitiv.

Charles Schwab — The e-broker rose more than 5% after beating on the top and bottom lines of its third quarter results. Schwab reported earnings of 48 cents per share on revenue of $2.45 billion. Analysts were expecting earnings of 46 cents per share on revenue of $2.43 billion, according to Refinitiv. Schwab added 592,000 new accounts in the third quarter and averaged 1.5 million daily active trades.

Zoom — Shares of the video conferencing company popped 5.3% after AB Bernstein hiked its 12-month price target on Zoom Video to $611 per share from $228 per share. This is the highest target price of any major firm, according to FactSet. Bernstein is "increasingly bullish on operational metrics and new product releases," the firm said.

Alcoa — The aluminum stock fell 5.4% despite the company reporting better-than-expected third-quarter results. Alcoa said in a release that it expects quarter-over-quarter results for the fourth quarter to be flat for its bauxite segment and lower for its alumina segment.

Brinker International — The restaurant stock jumped 4.6% after an upgrade to outperform from market perform by BMO Capital Markets. The firm said in a note that the Chili's parent company was set to beat earnings expectations once the pandemic passes.

Sleep Number — The bedding maker's stock rallied more than 11% after the company reported quarterly results that beat analyst expectations. Sleep Number reported a profit of $1.79 per share on revenue of $531.2 million. Analysts polled by Refinitiv expected earnings per share of $1.06 on revenue of $523.5 million. The company also said its "online and phone sales" surged by 111% when compared to the year-earlier period.

Fastly – Shares of Fastly dropped more than 27% after the cloud computing services provider cut its third-quarter revenue guidance, citing an "uncertain geopolitical environment" and a decline in usage from its largest customer TikTok. Fastly said it now expects third-quarter sales of $70 million to $71 million, lower than a previous guidance of $73.5 million to $75.5 million. It also withdrew its full-year forecast.

Walgreens – Shares of Walgreens popped 4.8% after the drugstore chain posted better-than-expected earnings and issued an upbeat guidance. Walgreens earned $1.02 per share in its fiscal fourth quarter, beating a Refinitiv estimate of 96 cents per share. The results were boosted by higher sales at U.S. pharmacies. The company also said it expects single-digit profit growth in the second half of its fiscal 2021 period.

— CNBC's Yun Li, Pippa Stevens, Maggie Fitzgerald, Fred Imbert and Michael Bloom contributed to this story.