A Tesla logo on a Model S is pictured inside a Tesla dealership in New York City.
Lucas Jackson | Reuters
Find out which companies are making the headlines in midday trading.
Tesla – Tesla shares jumped nearly 3% after Canaccord Genuity upgraded the stock to buy, citing Tesla’s battery innovations. Canaccord also raised its 12-month price target for Tesla to $ 1,071 per share from $ 419 per share. The new target implies a rally of almost 60% for the electric manufacturer.
Nuance Communications – Nuance’s share price rose more than 16% at noon after Microsoft said it would buy the speech recognition company for $ 56 a share, around 23% above the close of its action Friday. The deal, another sign that Microsoft is looking to expand through acquisitions, is valued at around $ 16 billion and around $ 19 billion, including debt.
Uber – The helicopter giant’s shares rose 3.3% after recording record gross bookings in March. Uber said its mobility segment, or ridesharing business, had its best month since March 2020, with an annualized operating rate of $ 30 billion. This was a 9% increase from a month earlier.
Alibaba – U.S.-traded shares of the Chinese internet giant jumped more than 9% after Chinese regulators fined the company $ 2.8 billion. The fine stands at around 4% of Alibaba’s revenue in 2019. The action is part of a broader review of internet companies by Chinese regulators.
United Airlines – The airline’s shares fell 4% after United Airlines announced it planned to report first-quarter revenue of $ 3.2 billion, down 66% from same quarter in 2019. According to FactSet, Wall Street analysts expected $ 3.35 billion.
Chipotle – The chain’s restaurant’s share price rose more than 1% after Raymond James improved the stock to outperform the market. The Wall Street firm said sales of Chipotle had played a full part in strengthening industry trends in the last few weeks of the tour, adding that there was “a significant rise” in stock prices. CNBC’s Jim Cramer said the stock was still a buy, even though it hit an all-time high.
Qualcomm – Chips stock fell 1.6% after Evercore ISI demoted the company to outperforming. Evercore said that after Qualcomm’s triple-digit run since Apple’s settlement, the lion’s share of the 5G smartphone upcycle is being built into the stock. Qualcomm and Apple settled a royalty and patent dispute in April 2019.
Plug Power – Morgan Stanley took over the cover of the hydrogen fuel cell company on a weight-for-weight basis, bringing shares down more than 8% in midday trading. The Wall Street firm said it saw a “modest” stock price increase for Plug Power.
– with reporting from CNBC’s Jesse Pound, Yun Li and Tom Franck.
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