AMC Entertainment (AMC, Financial) experienced a sharp decline, dropping over 20% in premarket trading after announcing a plan to offer up to $350 million of its stock. The move follows the successful conversion of AMC Preferred Equity units and comes on the heels of a third-quarter earnings report that showed increased revenue and narrowed losses. Despite these improvements, concerns about the company's debt persist. AMC has entered into an equity distribution agreement with several major financial institutions, including Citigroup and Goldman Sachs, to facilitate the at-the-market offering program.
The Walt Disney Company (DIS, Financial) saw its shares rise by 4.2% in premarket trading following the announcement of better-than-expected fourth-quarter earnings and an additional $2 billion in cost cuts. The earnings beat was driven by accelerated cost-cutting and stronger-than-expected streaming subscriber growth. Despite a slight miss on revenue expectations, the company's Parks unit was a significant contributor to the growth, and Disney is on track to achieve substantial annualized cost savings.
Bank of America raised concerns about the ownership concentration of the so-called Magnificent 7 megacap stocks, which include Apple (AAPL, Financial), Amazon (AMZN, Financial), Alphabet (GOOG, Financial) (GOOGL, Financial), Meta (META, Financial), Microsoft (MSFT, Financial), Nvidia (NVDA, Financial), and Tesla (TSLA, Financial). According to BofA strategist Savita Subramanian, these stocks have reached "critical mass" in terms of ownership, with few funds left to buy them. This could potentially limit future gains for these stocks, which have been significant drivers of broader market performance this year.
Take-Two Interactive Software (TTWO, Financial) saw its stock rise more than 2.5% in pre-market trading despite reporting a wider GAAP loss per share and a year-over-year decrease in revenue and bookings for FQ2 2024. The company's bookings guidance for the holiday quarter was below consensus estimates, but investor sentiment remained positive following the confirmation of a trailer release for the highly-anticipated Grand Theft Auto VI game in December.
Wells Fargo issued a warning about the potential for a turbulent market storm, suggesting that it is "premature" to declare the recession risk over. The bank highlighted emerging cracks in the economy, particularly in the residential home market, where elevated mortgage rates and low inventory levels are impacting affordability and sales. Wells Fargo forecasts that mortgage rates will trend lower next year, which could alleviate some of the pressure on the housing market.
DraftKings (DKNG, Financial) engaged in discussions about a potential offer for William Hill owner 888 Holdings Plc (EIHDF, Financial), according to a Financial Times report. Although the talks were in the early stages and ultimately did not progress, the news highlights DraftKings' interest in exploring strategic transactions.
Veeva Systems (VEEV, Financial) saw its shares fall approximately 7% pre-market after the company lowered its full-year guidance, attributing the change to macro-driven challenges affecting its services business. The company's CEO expressed concerns about the broader macroeconomic environment, including the potential for war in the Middle East, inflation, and political uncertainty.
Brookfield Corp. (BN, Financial) reported better-than-expected Q3 earnings, with growth in its insurance business and an increase in assets. The company's insurance solutions distributable earnings showed improvement, and it is on track to reach its earnings goal by the end of 2023.
Norwegian Cruise Line (NCLH, Financial) filed a prospectus to sell its ordinary shares, although the prospectus itself is not an offer to sell these securities. This move indicates the company's potential plans for raising capital.
Astra Space (ASTR, Financial) shares surged over 51% premarket after its founders proposed to purchase all outstanding stock for $1.50 per share in cash. The founders currently hold a significant voting interest in the company, and the offer comes amid considerations of financing and strategic transaction proposals.
An advisor to the EU's top court suggested that the General Court should review the case involving Apple (AAPL, Financial) and a €13 billion tax order again, after finding errors in the previous ruling that favored Apple. This development could have implications for Apple's financial obligations in Europe.
Target Corporation (TGT, Financial) gained in early trading after being added to Evercore ISI's Tactical Outperform List. The firm believes that Target's ability to manage earnings despite near-term sales pressures could lead to EPS upside, and the stock reflects much of the bad news regarding a softer consumer backdrop and operational challenges.
