Stocks making the biggest moves midday: Slack, Uber, United Airlines & more
Check out the companies making headlines in midday trading on Friday:
Slack — The work communications stock cratered after its earnings report, falling roughly 16% on Friday. The company said its growth remained steady last quarter despite a boom in people working from home. Revenue grew by 50% during the quarter, much less than the 169% growth reported by Zoom Video. The company also withdrew its guidance for calculated billings, which includes the deferred revenue the company hopes to earn from customers that have gotten credits during the pandemic. The stock is now trading near where it was on May 28 before a rally over the past week.
Uber Technologies — Shares of Uber gained more than 4% amid rising optimism about a smooth economic reopening. CEO Dara Khosrowshahi said on a conference call with analysts that trip requests are improving on a week-over-week basis, while the surge in food delivery showed no signs of slowing in May. Uber Eats service also launched a feature that lets customers easily order food from black-owned restaurants in light of the recent civil unrest.
Tiffany & Co. — Tiffany shares popped 7.8% in midday trading after multiple outlets reported that French luxury goods conglomerate LVMH has decided against trying to renegotiate a lower-than-agreed price for its acquisition of Tiffany. The conglomerate behind Louis Vuitton and Bulgari offered to buy Tiffany for about $16 billion last year but recent reports said LVMH executives had been discussing ways of trying to rehash the terms of the agreement.
United, American, Delta, Southwest — Airlines, which are positioned to benefit from the economy reopening, rose on Friday after a better-than-expected jobs report. American Airlines surged more than 15%. United Airlines and Delta rose 13% and 9%, respectively. Southwest jumped nearly 5% and Alaska Air Group jumped nearly 6%.
Simon Property Group — Shares of Simon Property Group, the biggest U.S. mall owner, soared more than 20% as it continued to reopen store after shutting down its locations for weeks to curb the spread of the coronavirus. Friday's advance brought its weekly gains to 60%, trimming its 2020 loss to about 37%.
Broadcom — Shares of the chip name jumped more than 5% following second-quarter earnings. The company earned an adjusted $5.14 per share, which matched analyst estimates, while revenue came in slightly ahead of expectations, helped by strength in the company's cloud division Guidance, however, was light due to supply chain constraints.
GameStop — GameStop shares sank 5.3% after the company said it expects its sales to drop by more than 33% in the most recent quarter that will contribute to a loss of more than $100 million. The company said in a press release that it expects same-store sales to fall somewhere between 30% to 31%; barring stores that were closed during the first quarter due to the Covid-19 pandemic, management sees comparable-store sales down 16% to 17%.
— CNBC's Pippa Stevens, Maggie Fitzgerald, Jesse Pound and Yun Li contributed reporting.
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