Latest Business News
Top Stocks in Premarket Trading Today, June 26, 2023
Tesla Drops 1.9% After Goldman Sachs Downgrade
Goldman Sachs has recently downgraded Tesla from buy to neutral, which resulted in a 1.9% drop in shares in premarket trading today. The bank cited the difficult pricing environment for electric vehicles and the stock's recent run-up as the reason for its call. Tesla has surged over 70% in the past six months, and Goldman believes it may face high investor expectations that will be hard to deliver upon.
Moderna Gains 2.5% Following Upgrade by UBS
Moderna's stock has gained 2.5% in premarket trading today after UBS upgraded the drugmaker from neutral to buy. However, the bank cuts its price target to $191 from $221, which implies that the stock still has 61% upside potential from Friday's close. UBS believes that the market's valuation of the company does not price in the potential upside of its other vaccines.
Lucid Motors Surges 12% After Partnership with Aston Martin
The luxury electric vehicle (EV) maker, Lucid Motors, has surged 12% in premarket trading after partnerising with Aston Martin to supply powertrain and battery systems to the British luxury carmaker. In return, Aston Martin will give Lucid Motors a 3.7% stake in the company and $232 million in cash payments. Lucid expects to produce 21,000 EVs this year and is currently in the process of expanding its factory in Arizona.
Alphabet Downgraded by UBS to Neutral from Buy
Google's parent company, Alphabet, has been downgraded by UBS from buy to neutral, causing the tech giant's shares to slide by 1.4% in premarket trading today. UBS cited near-term revenue headwinds from new search competition and stiffer generative AI competition as reasons for the downgrade.
Pfizer Slips 2.4% After Discontinuing Clinical Development of Experimental Drug
Pfizer's shares have slipped by 2.4% in premarket trading after the company announced that it would discontinue the clinical development of its experimental obesity and diabetes drug, lotiglipron. Studies showed elevated liver enzymes, although no participants reported any symptoms or side effects. Pfizer stated that it decided to stop the drug's development after consulting with regulatory authorities.
PacWest Rises Nearly 6% After Ares Management Acquisition
The regional bank PacWest has seen a jump of nearly 6% in premarket trading after Ares Management acquired its $3.5 billion specialty finance portfolio consisting of high-quality, senior secured, asset-backed loans. PacWest is expected to increase its focus on core businesses and community banking going forward.
Carnival Experiences 1.9% Rise Ahead of Earnings Announcement
Carnival's shares were up 1.9% in premarket trading ahead of the company's earnings announcement, expected before the bell. The cruise industry has been rebounding from the Covid pandemic, resulting in soaring cruise stocks recently.
The stock market is a dynamic environment that can be influenced by a wide range of factors, including the performance of individual companies and global economic trends. As startups and new businesses navigate this landscape, it is essential to stay vigilant and informed of significant changes in the market that could impact their operations.
In today's premarket trading, we saw a mix of ups and downs, with companies like Moderna and Lucid Motors seeing gains, while others like Tesla and Pfizer experienced drops. It is crucial for new businesses to pay attention to these changes and understand the underlying reasons behind them to make strategic decisions that will serve their interests.
One key takeaway from today's premarket trading is the importance of recognizing market realities. Tesla's drop after Goldman Sachs' downgrade highlights the importance of considering the competitive environment for electric vehicles, while Moderna's gain following UBS' upgrade reflects the potential value of innovative healthcare solutions. Overall, new businesses must stay informed and flexible to adapt to the fluctuations of the stock market and take advantage of opportunities to drive growth and success.