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Cramer names 6 e-commerce plays that are buys, says to wait on Amazon

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CNBC’s Jim Cramer on Friday offered investors a list of e-commerce plays he believes are worth buying, despite the group’s rough performance in 2022.

“There are still some e-commerce plays that I’m willing to get behind here, the ones that have truly prioritized profitability,” he said.

related investing news

Here is his list: 

  1. Etsy
  2. Shopify
  3. Pinterest
  4. MercadoLibre
  5. Chewy
  6. Prologis

E-commerce stocks skyrocketed during the height of the Covid pandemic, as at-home consumers made purchases online rather than in-store. But when the economy reopened, consumers prioritized spending on travel and experiences over goods.

That shift, along with the Federal Reserve’s interest rate hikes, sent e-commerce stocks tumbling from their highs last year.

Cramer cautioned that while he believes the group’s struggles are temporary, it’s still too early to buy many of the names in the e-commerce space — including Amazon. 

He said that one of his biggest concerns with the company is that it needs to cut more costs. Amazon said earlier this month that it plans to lay off over 18,000 employees. 

While that might seem like a sizable cut, “this is a company with well over a million employees — to them, this is a drop in the bucket,” Cramer said.

But Amazon’s stock will eventually bottom, he said. “I think the business can eventually make a big comeback and there will come a point where the stock’s a screaming buy.”

Disclaimer: Cramer’s Charitable Trust owns shares of Amazon.

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Business

U.S. stocks push higher as Powell sees path back to 2% inflation while sustaining strong labor market

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U.S. stock indexes pushed higher after a wobbly start Wednesday, leaving Wall Street potentially on to gain ground after back-to-back losses, as investors tune in to remarks by central bankers while fretting that soaring inflation is damaging the world’s biggest economy.

How are stock indexes trading?
  • The Dow Jones Industrial Average
    DJIA,
    +0.12%
     was up 196 points, or 0.6%, at 31,143.
  • The S&P 500
    SPX,
    -0.23%
     traded up 15 points, or 0.4%, at 3,836.
  • The Nasdaq Composite
    COMP,
    -0.43%
    gained 42 points, or 0.4%, to 11,223.

On Tuesday, the Dow fell 491.27 points, or 1.6%. The S&P 500 fell 2% and the Nasdaq Composite dropped 3%. All three booked their worst daily percentage declines since June 16, according to Dow Jones Market Data.

What’s driving markets?

Federal Reserve Chair Jerome Powell said Wednesday at a European Central Bank forum on central banking that he sees a path back to 2% inflation while sustaining strong labor market, but warned there was “no guarantee that we can do that.”

Investors were also listening to remarks from European Central Bank President Christine Lagarde, Bank of England Gov. Andrew Bailey and Augustin Carstens, head of Bank for International Settlements, to speak at speak at the same conference.

On U.S. economic data, the first-quarter GDP was revised to show an 1.6% decline, compared with the prior 1.5% drop.

Equities were limping toward the end of a miserable first half of the year. The S&P 500 is down 19.6% so far in 2022, hit by concerns that inflation rates at multidecade highs are badly damaging household sentiment and that the Federal Reserve’s response to surging prices may tip the economy into recession.

Read: What’s next for the stock market after the worst 1st half since 1970? Here’s the history.

On Tuesday, the Conference Board’s consumer-confidence index dropped in June to a 16-month low of 98.7, with consumers’ outlook on the state of the economy at the most cautious in nearly 10 years. The news helped turn early gains for Wall Steet into heavy losses, with the Nasdaq Composite shedding 3%, leaving the tech-heavy index nursing a loss of 28% for the year to date.

“Last week, U.S. equity markets rallied on the back of the arcane logic that a U.S. recession would mean a lower terminal Fed funds rates and thus, was bullish for stocks… That premise was boosted by weak Michigan Consumer Sentiment data,” said Jeffrey Halley, senior market analyst at OANDA, in a note to clients.

See: Wall Street’s favorite stock sector has potential upside of 43% as we enter the second half of 2022

On Tuesday, “even weaker U.S. Conference Board Consumer Confidence data provoked the opposite reaction, with U.S. stocks plummeting,” he added.

Wall Steet’s dive left Asian and European bourses floundering. Hong Kong’s Hang Seng
HSI,
-1.88%
fell 2% and the Nikkei 225
NIK,
-0.91%
in Japan slipped 0.9%. China’s Shanghai Composite
SHCOMP,
-1.40%
shed 1.4% after President Xi Jinping reiterated that the regime’s strict COVID-19 policy was “correct and effective.”

The comments added to worries that supply constraints in China could exacerbate global inflationary pressures. And such concerns were illustrated in Spain on Wednesday, where data showed prices rising by 10.2% in June, their fastest pace in 37 years. Europe’s Stoxx 600
SXXP,
-0.41%
fell 0.8%.

Oil prices crept higher, with WTI crude
CL.1,
+1.61%,
up 1.5% to $113.41 a barrel.

The yield on the U.S. 10-year Treasury note
TMUBMUSD10Y,
3.135%
eased 1.3 basis points to 3.167%.

Companies in focus
  • Shares of Pinterest Inc.
    PINS,
    -2.36%
    rose 0.2% after the social-media company said co-founder Ben Silbermann is stepping down as chief executive and is being replaced by an e-commerce executive from Google.
  • Bed Bath & Beyond Inc.
    BBBY,
    -22.21%
    shares fell 18.7% after it announced disappointing fiscal first-quarter results and the ouster of its chief executive, Mark Tritton.
  • General Mills Inc.
    GIS,
    +5.31%
    shares rose 4.7% after beating quarterly expectations. The company posted fourth-quarter net income of $822.8 million, or $1.35 per share, nearly double $416.8 million, or 68 cents per share, last year. Adjusted EPS of $1.12, ahead of the FactSet consensus for $1.01 per share. 
Other assets
  • The ICE U.S. Dollar Index
    DXY,
    +0.30%
     edged down 0.01%.
  • Bitcoin
    BTCUSD,
    -1.04%
     fell 4.6% to trade near $20,120.
  • August gold futures
    GCQ22,
    -0.12%
    gained $6.30, or 0.4%, to settle at $1,827.90 an ounce.

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Business

5 things to know before the stock market opens Wednesday, June 29

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Here are the most important news items that investors need to start their trading day:

1. Stocks looking for stability

Traders on the floor of the New York Stock Exchange, June 28, 2022.

Source: NYSE

Equities markets’ attempt to build on last week’s momentum has so far fizzled this week. Futures were little changed Wednesday morning following Tuesday’s rout. The S&P 500 is on the verge of wrapping up its worst first half of a year since 1970. Earnings season is just around the corner, but companies such as Nike have already given warnings that persistent problems such as inflation and supply chain snarls are weighing on companies’ performance.

2. Fed’s Mester on a July rate hike

Cleveland Federal Reserve President and CEO Loretta Mester gives her keynote address at the 2014 Financial Stability Conference in Washington December 5, 2014.

Gary Cameron | Reuters

Federal Reserve Bank of Cleveland President Loretta Mester, a voting member of the Fed’s policy-setting panel, said she may push for a bigger rate hike next month. “If conditions were exactly the way they were today going into that meeting — if the meeting were today — I would be advocating for 75, because I haven’t seen the kind of numbers on the inflation side that I need to see in order to think that we can go back to a 50 increase,” she said in an interview with CNBC’s Annette Weisbach. Investors will also be paying attention to comments Wednesday from Fed Chairman Jerome Powell, who is speaking at a European Central Bank forum.

3. Bed Bath & Beyond CEO leaving

Bed Bath & Beyond CEO Mark Tritton

Courtesy: Bed Bath & Beyond

Bed Bath & Beyond announced a leadership shakeup Wednesday morning, including the departure of CEO Mark Tritton, as the home goods retailer continues to struggle. Sue Gove, an independent director on the board, will act as interim chief executive. “We must deliver improved results,” she said in a news release. The company, which has faced pressure from activist investor Ryan Cohen, also reported quarterly results that sharply missed Wall Street’s expectations. Shares tumbled over 10% in premarket trading.

4. Tepid data out of China

For more than two years, overseas travelers have had to quarantine upon arrival in China because of Covid restrictions. Pictured here at Beijing International Airport on June 18, 2022, are passengers waiting to be taken to quarantine-designated destinations.

Leo Ramirez | Afp | Getty Images

Tight Covid restrictions and lockdowns in China took a toll on the nation’s economic growth during the second quarter, according to a new report. Various sectors suffered a slowdown, including transportation and services, according to the U.S.-based China Beige Book, which says it conducted more than 4,300 interviews in China during the three-month period. Hiring slowed down, as well, according to the study, and likely won’t pick up again until the Chinese government provides more stimulus this fall.

5. Disney extends Chapek’s deal

Bob Chapek, Disney CEO at the Boston College Chief Executives Club, November 15, 2021.

Charles Krupa | AP

Disney CEO Bob Chapek will be sticking around for at least a little bit longer as he pursues his goal of broad subscriber growth for Disney+. His contract was set to expire in February next year, but the board unanimously voted to extend his deal. Chapek has faced his fair share of controversy and tumult during his relatively short time in the top job. He faced criticism for his response to Florida’s so-called “Don’t Say Gay” law, and the company’s share price is down 38% so far this year. Chapek also had a tough act to follow, having taken the reins from popular longtime CEO Bob Iger, who oversaw Disney’s acquisitions of the Pixar, Marvel and Star Wars brands.

— CNBC’s Samantha Subin, Elliot Smith, Melissa Repko, Evelyn Cheng and Sarah Whitten contributed to this report.

— Sign up now for the CNBC Investing Club to follow Jim Cramer’s every stock move. Follow the broader market action like a pro on CNBC Pro.

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Business

Meta, McDonald’s, Teladoc, Ford and more

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Pavlo Gonchar | LightRocket | Getty Images

Check out the companies making headlines in midday trading.

Meta Platforms — Shares of the company formerly known as Facebook surged 17% after reporting mixed first-quarter results. The company posted a beat in earnings but a disappointing revenue miss. It also saw daily active users grow following a decline in the fourth quarter.

McDonald’s – Shares of the restaurant chain gained 3% after first-quarter revenue topped expectations. McDonald’s reported first-quarter revenue of $5.67 billion versus the $5.59 billion expected by analysts, according to Refinitiv. The company saw same-store sales growth of 3.5% in the U.S. and even higher in international markets, ahead of estimates compiled by StreetAccount.

Qualcomm — Qualcomm’s stock price surged more than 7% after its most recent earnings report showed all four of the company’s semiconductor businesses grew during the most recent quarter. Qualcomm posted adjusted earnings per share of $3.21 on revenue of $11.16 billion. Analysts surveyed by Refinitiv were forecasting earnings of $2.91 per share on revenue of $10.60 billion.

Ford — The automaker’s shares fell 2% after the company said its stake in Rivian dragged profits lower in the recent quarter. Ford reported adjusted earnings per share of 38 cents on $32.1 billion in revenue. Analysts surveyed by Refinitiv anticipated earnings of 37 cents per share on $31.13 billion in revenue.  

Caterpillar – Shares of the machinery company dropped more than 3% despite a first-quarter report that beat estimates on the top and bottom lines. Caterpillar reported an adjusted $2.88 in earnings per share on $13.59 billion of revenue. Analysts surveyed by Refinitiv had penciled in $2.60 in earnings per share on $13.40 billion of revenue. The company’s sales growth did slow relative to the fourth quarter, and operating profit margins shrank year over year.

PayPal — PayPal shares jumped 9% following a beat on revenue in the first quarter. The stock rose even as the payments firm issued weak guidance for the second quarter and full year.

Mastercard — Mastercard shares gained 4.6% following a beat on the top and bottom lines in the recent quarter. For the first time since the start of the pandemic, the company said cross-border travel ticked above 2019 levels.

Comcast — Shares of Comcast plummeted more than 6% despite beating analysts’ expectations on the top and bottom lines as growth in broadband subscriptions slowed. The company beat analysts’ estimates on the metric but noted that roughly 80,000 of the subscribers were free internet customers.

Southwest Airlines — Southwest Airlines’ stock rose 2% after reporting a wider-than-expected loss but a beat on revenue in the recent quarter. The company reaffirmed its second-quarter forecasts and said it expects revenue for that period to outpace 2019 despite fewer flights.

Pinterest — Pinterest’s stock price jumped more than 7% following an earnings beat. On Wednesday, the image-sharing company reported adjusted earnings of 10 cents per share and revenues of $575 million. In comparison, analysts polled by Refinitiv expected earnings of 4 cents per share on revenues of $573 million.

Eli Lilly — The drug maker’s shares 3.7% after the company reported results from a clinical trial showing its obesity drug tirzepatide helped patients lose up to 22.5% of their weight. Eli Lilly also reported better-than-expected earnings and revenue for the first quarter and boosted its full-year revenue guidance.

Teladoc —  Shares of the telehealth service plummeted by 45% after the company reported an earnings miss for its most recent quarter and gave weaker-than-expected revenue guidance, after which at least six Wall Street firms issued downgrades of the stock.

ServiceNow — Shares of ServiceNow added 7.9% following a beat on the top and bottom lines in the recent quarter. The company saw $1.73 adjusted earnings per share on $1.72 billion in revenue. Analysts expected $1.70 per share and $1.70 billion in revenue, according to FactSet’s StreetAccount.

— CNBC’s Jesse Pound, Tanaya Macheel and Sarah Min contributed reporting

Disclosure: Comcast owns CNBC’s parent NBCUniversal.

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Business

GameStop, Uber, Nielsen Holdings and more

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A screen displays the logo and trading information for GameStop on the floor of the New York Stock Exchange (NYSE) March 29, 2022.

Brendan McDermid | Reuters

Check out the companies making headlines in midday trading.

GameStop — Shares of the video game retailer dropped 6% on huge trading volume. More than 8 million shares traded through 10:50 a.m. ET, already doubling its 30-day average full-day volume of 4.6 million. There were some large block trades of GameStop in early trading on the NYSE.

Nielsen Holdings – Shares spiked about 20% following news that a group of private equity investors led by Brookfield Business Partners will acquire the ratings company for $16 billion. The company had previously rejected a $9 billion offer from the same group.

NortonLifeLock — Shares for the cybersecurity company dropped 4.5% in midday trading. On Tuesday, Morgan Stanley downgraded NortonLifeLock’s stock to equal-weight, saying the firm sees “limited catalysts” for the cybersecurity company. A regulatory probe in the United Kingdom into NortonLifeLock’s $8.6 billion deal with Avast and higher inflation costs is weighing on the stock.

FedEx – FedEx shares gained 4.2% on news that CEO Fred Smith will step down on June 1. Smith, who founded the package and delivery company more than 50 years ago, will serve as executive chairman. President and Chief Operating Officer Raj Subramaniam will replace him as CEO.

Uber — Shares rose 6% as the ride-hailing company is close to a deal to include San Francisco taxis to its app, The New York Times reported. The report comes after Uber last week announced an agreement to offer New York City taxi rides on its platform.

Dave & Buster’s — Shares of the arcade company soared 10% despite missing on the top and bottom lines of its quarterly results. Dave & Buster’s said that business “strengthened” in the first eight weeks of the first quarter with same-store sales up 5.4% over the same period in 2019.

Reynolds Consumer Products — Shares of the maker of consumer products fell nearly 3% in midday trading after Goldman Sachs double downgraded the stock to sell from buy. The Wall Street firm said consensus estimates are too high for Reynolds.

Stellantis — Shares of the automaker rose 7% in midday trading despite news that it is laying off an undisclosed number of workers at its Illinois Jeep plant in an effort to “operate the plant in a more sustainable manner.”

Jefferies — Shares of Jefferies popped more than 7% in midday trading after reporting better than expected quarterly profit and revenue.  Jefferies earned $1.23 per share, well above the 89 cent consensus estimate, according to Refinitiv.

UnitedHealth Group — Health care giant UnitedHealth Group announced a deal to buy LHC Group for $170 per share. LHC Group rose 1% in midday trading while UnitedHealth Group was about flat.

— with reporting from CNBC’s Samantha Subin, Sarah Min, Hannah Miao, Tanaya Macheel and Yun Li.

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Business

Nielsen Holdings, FedEx, LHC Group and more

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Take a look at some of the biggest movers in the premarket:

Nielsen Holdings (NLSN) – The TV ratings company’s stock surged 20.9% in the premarket after it agreed to be acquired by a private-equity consortium for $28 per share. The deal is worth $16 billion, including assumed debt.

FedEx (FDX) – FedEx CEO Fred Smith will step down from that role at the company he founded more than 50 years ago. He’ll become executive chairman on June 1 and will be replaced as CEO by President and Chief Operating Officer Raj Subramanian. FedEx shares rose 2% in the premarket.

LHC Group (LHCG) – UnitedHealth (UNH) will buy the home health-care specialist for $5.4 billion in cash, or $170 per share, according to The Wall Street Journal. LHC will become part of UnitedHealth’s Optum health-care services unit. LHC shares jumped 7.5% in premarket action.

Uber Technologies (UBER) – Uber is close to an agreement with a San Francisco taxi company to include taxis in its ride-hailing platform in that city, according to people familiar with the matter who spoke to The New York Times. Uber recently struck a similar agreement in New York City. The stock added 1.9% in premarket action.

Jefferies Financial (JEF) – The asset management firm’s stock rallied 3.7% in the premarket after reporting better-than-expected quarterly profit and revenue. Jefferies earned $1.23 per share, well above the 89 cents a share consensus estimate, even as profit fell from a year earlier amid what the company called a “challenging” trading environment.

GameStop (GME) – GameStop remains on watch as the videogame retailer’s stock rides a 10-session winning streak that has seen it gain 143%. Another “meme stock” on a roll is movie theater operator AMC Entertainment (AMC), which surged 45% Monday, its best day since last June. GameStop fell 3.5% in premarket trading, while AMC slid 4.5%.

Stellantis (STLA) – The automaker is laying off an undisclosed number of workers at its Illinois Jeep plant in an effort to “operate the plant in a more sustainable manner.” The plant saw several layoffs last year as well as it tried to deal with the impact of the global semiconductor shortage. Stellantis shares jumped 4.5% in premarket trading.

Southwest Gas (SWX) – The energy producer will sell $400 million in shares at $74 per share to help repay debt used in its $2 billion acquisition of Questar Pipelines in December. That deal had been opposed by investor Carl Icahn, whose offer to buy Southwest at $82.50 per share was rejected by the company on Monday. Southwest fell 3.4% in the premarket.

Dave & Buster’s (PLAY) – The restaurant chain’s stock slumped 5.9% in the premarket after a top and bottom-line miss for its latest quarter. Dave & Buster’s fell 8 cents a share shy of estimates, with quarterly earnings of 52 cents per share. Dave & Buster’s said its results were strong in light of ongoing Covid-19 headwinds.

Pinterest (PINS) – Shares of the image-sharing site operator slid 2.7% in premarket trading after Morgan Stanley downgraded it to “equal-weight” from “overweight.” Morgan Stanley points to challenging user trends, including a greater proportion of time spent on activities with lower monetization potential.

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Amazon, Snap, Ford, Clorox and more

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The Amazon logo is seen at the company logistics center in Lauwin-Planque, northern France.

Pascal Rossignol | Reuters

Check out the companies making headlines in midday trading.

Amazon — Shares of Amazon popped more than 14% following a stellar quarterly report. The company said its investment in electric vehicle company Rivian gained almost $12 billion in the fourth quarter. Amazon Web Services delivered almost 40% year-over-year growth in the fourth quarter, beating Wall Street estimates. Amazon also announced it would increase the price of Prime to $139 from $119 for annual memberships. The cost of a monthly Prime membership will also rise to $14.99 from $12.99.

Ford Motor — Ford fell more than 10% after a weaker-than-expected quarterly report. The automaker posted earnings of 26 cents per share on revenue of $35.3 billion. Analysts surveyed by Refinitiv expected a profit of 45 cents per share on revenue of $35.52 billion.

Snap — Shares of the social media platform soared a whopping 52% after the company reported its first-ever quarterly net profit. Snap’s quarterly results also showed it’s seeing quicker-than-expected progress on its transition with advertisers around Apple’s privacy changes on iOS. Its shares had just suffered a 23.6% sell-off on Thursday, prior to the earnings release.

Clorox — The cleaning products stock tumbled more than 14% after Clorox’s second-quarter earnings came in at 66 cents per share, which was 18 cents below expectations, according to Refinitiv. Clorox also delivered full-year earnings guidance that missed estimates. Atlantic Equities downgraded the stock to underweight.

Pinterest — Pinterest popped more than 6% following a better-than-expected quarterly report. The social media platform posted earnings of 49 cents per share, 4 cents above the Refinitv consensus estimate. Revenue also topped Wall Street expectations.

Unity Software – Shares of the video game platform surged more than 16% after the company reported better-than-expected quarterly results and issued upbeat current-quarter guidance. Unity also said it has strong growth opportunities over decades in the future based on interactive real-time 3D gaming.

Skechers — Shares of Skechers added 6.4% after the footwear retailer beat Wall Street expectations on its top and bottom lines. Skechers reported record 2021 sales amid strong demand for casual and comfortable shoes.

Meta Platforms — Shares of Facebook’s parent company fell for another day after the tech giant’s disappointing quarterly report Wednesday, down about 1.2%. Friday’s dip comes after other social media companies like Snap saw better-than-expected progress in adapting their digital advertising to Apple’s iOS privacy changes.

Penn National Gaming — Shares of Penn National Gaming dropped nearly 3% following the company’s earnings report Thursday. Penn also received a downgrade from Roth to neutral from buy. “While we remain bullish on PENN’s digital opportunity longer term, we see several negative catalysts in 2022 that could erode confidence in its market share trajectory,” the firm said.

— CNBC’s Yun Li, Jesse Pound and Tanaya Macheel contributed reporting

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Business

Pfizer, Canada Goose, Live Nation and more

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Check out the companies making headlines before the bell:

Pfizer (PFE) – The drug maker’s shares surged 9.4% in premarket trading after a study showed that its experimental Covid-19 antiviral pill reduced the risk of hospitalization and death by nearly 90%. Pfizer said it will ask regulators to approve the pill as soon as possible.

Canada Goose (GOOS) – The outerwear maker reported an unexpected profit for its latest quarter along with better-than-expected revenue, and also raised its full-year forecast. Canada Goose also said it’s seeing an indication of a strong winter season, and shares jumped 4.6% in the premarket.

Live Nation Entertainment (LYV) – Live Nation shares rallied 5.4% in premarket action after the event promoter returned to profit amid a sales surge as live events returned. Results exceeded analyst estimates.

DraftKings (DKNG) – The sports betting company’s stock slid 3.5% in the premarket after it reported a wider-than-expected loss and revenue that fell short of Street forecasts. DraftKings did raise the midpoint of its fiscal 2021 revenue guidance and said it expected a strong 2022.

Canopy Growth (CGC) – The Canadian cannabis producer lost 3 cents per share for its latest quarter, smaller than the 20-cent loss expected by analysts. However, revenue fell short of estimates and the company flagged slower-than-expected revenue growth for the second half of fiscal 2022. The stock fell 3.5% in the premarket.

Peloton (PTON) – Peloton tumbled 31.8% in the premarket after the fitness equipment maker slashed its full-year sales forecast by $1 billion, amid slowing demand for bikes and treadmills. Peloton also reported a quarterly loss of $1.21 per share, wider than the $1.07 loss expected by analysts, and revenue fell short of estimates as well.

Expedia (EXPE) – Expedia earned an adjusted $3.53 per share for its latest quarter, well above the $1.65 consensus estimate. Revenue was also higher than expected, with the travel services company benefiting from the surge in travel demand. Expedia soared 13.2% in premarket trading.

Airbnb (ABNB) – Airbnb rallied 6.2% in the premarket as the travel-demand surge lifted sales and earnings beyond Wall Street forecasts. Airbnb earned $1.22 per share for its latest quarter, beating the $0.75 consensus estimate, with sales coming in at a record high. The company also said it expects a strong holiday season.

Uber Technologies (UBER) – Uber reported its first profitable quarter on an adjusted basis, thanks to upbeat performances by its ride-sharing and food delivery services. It did post an overall loss due to the drop in value of its stake in China ride-hailing company Didi (DIDI). Uber rose 1.2% in premarket trading.

Pinterest (PINS) – Pinterest came in 5 cents above estimates with an adjusted quarterly profit of 28 cents per share, and the image-sharing site operator’s revenue also topped analyst forecasts. It is also predicting an upbeat current quarter as the online retailer spends more on holiday season ads. Pinterest jumped 4.5% in premarket action.

Shake Shack (SHAK) – Shake Shack reported a quarterly loss of 5 cents per share, 1 cent less than Wall Street had anticipated, but the restaurant chain’s sales missed analyst forecasts. Despite the revenue miss, Shake Shack rallied 6.3% in the premarket.

Square (SQ) -Square matched estimates with quarterly earnings of 37 cents per share, while the mobile payments company’s revenue missed forecasts. Square did see a nearly 60% rise in profit from a year earlier, thanks in large part to a surge in bitcoin transactions, but the stock dropped 3.7% in premarket trading.

Lions Gate Entertainment (LGF) – The movie and tv studio is considering a sale or spin-off of its Starz premium cable channel, saying it sees the potential to unlock significant shareholder value. The stock surged 15.1% in the premarket.

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Business

Pinterest, Sonos, Anthem and more

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Customers view merchandise in an experience room at the Sonos store in New York.

Gabby Jones | Bloomberg | Getty Images

Check out the companies making headlines in midday trading.

Pinterest — Shares of the social media company rallied more than 9% following a Bloomberg News report that said PayPal may acquire Pinterest. PayPal shares fell 4.9%.

Sonos — Shares of the smart home sound system manufacturer jumped 1.6% after David Einhorn’s Greenlight Capital said it increased its bet on the company, calling Sonos a “bright growth story.” In a letter to investors obtained by CNBC, the hedge fund manager revealed that his firm expanded what was a small position in Sonos “to a size that makes it worthwhile to discuss.”

Ford – Shares of the automaker jumped 3.6% after Credit Suisse upgraded the stock to outperform from neutral. “In the past year, we’ve seen a significant turnaround underway at Ford,” the analyst said. “It has ended its cycle of quarterly earnings disappointments, and its transition to an EV/digital world has sharply accelerated.”

ProShares Bitcoin Strategy ETF – The bitcoin futures ETF gained about 4% in its second day of trading as the price of bitcoin rallied to an all-time high. The fund tracks contracts speculating on the future price of bitcoin.

Anthem — Shares of the insurance company popped more than 7% in midday trading after Anthem reported better-than-expected quarterly results. Anthem earned $6.79 per share, topping estimates by 42 cents, according to Refinitiv. Anthem made $35.55 billion in revenue, higher than the forecast $35.3 billion.

Omnicom Group — Omnicom shares slipped 4.1% following the media company’s third-quarter financial results. The company posted profit of $1.65 per share versus $1.37 analysts surveyed by StreetAccount were expecting. Revenue came in at $3.44 billion, slightly short of the $3.46 billion analyst estimate.

Novavax — Novavax shares sank 11% after a Politico report said the drugmaker is having challenges meeting regulators’ quality standards for its Covid vaccine.

Brinker International – Shares of the Chili’s parent dipped more than65% after the company warned about the impact of higher labor and commodities costs, saying its margins will be hit. “The Covid surge starting in August exacerbated the industry-wide labor and commodity challenges and impacted our margins and bottom line more than we anticipated,” CEO Wyman Roberts said in a statement. The company will report full quarterly results on Nov. 3.

Winnebago – Winnebago’s stock rose 0.1% despite the company beating top- and bottom-line estimates during its fiscal fourth quarter. The RV maker earned $2.57 per share excluding items on $1.04 billion in revenue.

Abbott Laboratories — Shares of the pharmaceutical company rose nearly 2.5% in midday trading after beating on the top and bottom lines of its quarterly results. Abbott earned an adjusted $1.40 per share, topping estimates of 95 cents per share, according to Refinitiv. Revenue came in at $10.93 billion, higher than the forecast $9.56 billion.

Signature Bank — Shares of New York-based Signature Bank rose 4.1% after the company beat quarterly earnings expectations. The bank reported earnings of $3.88 per share versus the StreetAccount consensus of $3.72 per share.

WD-40 — Shares of the lubricant maker sank 7.9% after missing on the top and bottom lines of its quarterly results. CEO Garry Ridge said the pandemic had created abnormal swings in the company’s sales results.

Tegna — Shares of Tegna rose more than 4% following a Bloomberg report that media mogul Byron Allen has received additional backing for his $23 per share offer for the TV broadcasting company. 

— with reporting from CNBC’s Yun Li, Pippa Stevens, Hannah Miao and Tanaya Macheel.

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Tesla, GameStop, Roblox & more

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Take a look at some of the biggest movers in the premarket:

Tesla (TSLA) – Tesla delivered nearly 185,000 vehicles during the first quarter, a record for the company and more than 10,000 about consensus forecasts. The stock jumped 7.6% in the premarket.

GameStop (GME) – The video game retailer announced plans to sell up to 3.5 million shares in an “at-the-market” offering, with plans to use the proceeds to strengthen its balance sheet and accelerate its ongoing transformation. GameStop also said sales for the first nine weeks of its current quarter were up 11% from the same period a year ago. GameStop tumbled 15.1% in premarket trading.

Roblox (RBLX) – Shares of the video game development platform company’s stock jumped 3.5% in premarket action, as Goldman began coverage with a “buy” rating and Morgan Stanley initiated coverage with a rating of “overweight.” Both firms cite robust growth prospects, with Goldman noting that Roblox is able to outsource game development costs to creators.

Royal Caribbean (RCL), Norwegian Cruise Line (NCLH), Carnival (CCL) – The Centers for Disease Control and Prevention updated its guidance for resuming U.S. cruise ship sailings, although it did not set a specific date for resumption. Royal Caribbean gained 1.5% in the premarket, with Norwegian up 2.5% and Carnival higher by 2.2%.

Johnson & Johnson (JNJ) – J&J will take over manufacturing at a plant owned by contract manufacturer Emergent Biosolutions (EBS) after a quality control issue ruined a batch of J&J’s Covid-19 vaccine. The Wall Street Journal reports that in order to accommodate the switch, production of AstraZeneca’s (AZN) Covid-19 vaccine will be moved elsewhere. Separately, J&J expanded a trial of its Covid-19 vaccine to include 12- to 17-year-olds.

Tribune Co. (TPCO) – Tribune received a $680 million takeover bid – worth $16.50 per share – from Choice Hotels Chairman Stewart Bainum and Swiss billionaire Hansjorg Wyss. That tops a $635 million deal that the newspaper publisher had previously agreed to with hedge fund Alden Global Capital.

Pinterest (PINS) – The image-sharing website operator is in talks to buy photo app company VSCO, according to The New York Times. A potential deal price could not be determined, but VSCO was most recently valued at $550 million. Pinterest shares rose 1.6% in the premarket.

General Motors (GM), Ford Motor (F) – Wells Fargo began coverage of both automakers with ratings of “overweight,” pointing to Ford’s faster turnaround under new CEO Jim Farley and GM’s leading position in electric vehicles and connectivity. GM shares added 1.7% in premarket action, while Ford rose 1.5%.

Pioneer Natural (PXD) – Pioneer Natural struck a deal to buy privately held rival shale producer DoublePoint Energy for about $6.4 billion, continuing the consolidation trend in the shale industry. Pioneer shares fell 4.4% in premarket trading.

Moderna (MRNA) – Moderna received Food and Drug Administration approval to fill Covid-19 vaccine vials with up to 15 doses, up from the previous 10 doses. Moderna said it expects to begin shipping the 15-dose vials within a few weeks, and its stock rose 1.5% in premarket trading.

Morgan Stanley (MS) – Morgan Stanley said it would increase its dividend as soon as restrictions are lifted by the Federal Reserve. The Fed is scheduled to release the next round of bank stress test results in June. Morgan Stanley rose 1.4% in the premarket.

Planet Fitness (PLNT) – The fitness chain is planning to add up to 100 new locations in the coming fiscal year, adding to its current total of more than 2,100. CFO Tom Fitzgerald told The Wall Street Journal the company also wants to boost investment in its app.

Lamb Weston (LW) – Shares of the foodservice company gained 1.9% in the premarket after Bank of America Securities upgraded it to “buy” from “neutral” and raised the price target to $100 per share from $84 a share. BofA said the company is poised to approach pre-Covid business levels, with demand improving.

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