People walk by Ralph Lauren’s Fifth Avenue Polo store in New York City.
Find out which companies are making headlines in midday trading.
Square – Jack Dorsey’s payments firm saw its shares rise 11.5% after the firm announced plans to buy Australian fintech firm Afterpay in a then-$ 29 billion stock deal. that it seeks to develop further in the booming installment loan market. The price tag marks a premium of around 30% over Afterpay’s last closing price. Square also reported earnings of 40 cents per share in the second quarter, compared to a loss of 3 cents per share in the same period last year. The company’s gross profit increased 91% from a year ago, marking a record quarterly growth rate.
Payment stocks – Stocks of payment technology companies that provide processing and network services to card issuers at banks are collapsing in response to news that Square has acquired Afterpay. Global Payments shares fell 8% despite news of second-quarter earnings of $ 2.04 that exceeded analysts’ expectations by $ 1.90. FIS shares fell 4% and Fiserv shares fell 3.4%.
Robinhood – Shares of the new public stock trading app rose 4% after its Nasdaq debut last week. ARK Invest’s Cathie Wood on Friday bought around $ 65 million of Robinhood shares in three ARK funds, a major vote of confidence from the innovation investor.
Moderna, Pfizer, BioNTech – Pfizer shares rose 2.7% and shares of its partner BioNTech jumped 6% after raising the prices of its Covid-19 vaccines in Europe. However, shares of Moderna, which also raised prices in Europe, lost around 1%. The Food and Drug Administration is under pressure to give full approval to both vaccines, which could happen within the next month for Pfizer and BioNTech.
Under Armor – The clothing company’s shares rose 3.5% after investment firm Baird named the stock a new choice. Under Armor is well positioned to exceed expectations when it releases results on Tuesday and has a rise due to its underperformance against Nike, Baird said.
Ralph Lauren – Shares of the clothing retailer gained 3.5% after Goldman Sachs launched cover for the title with a buy note. The bank noted Ralph Lauren’s strength in direct-to-consumer digital sales and said it was “optimistic” about the company’s turnaround.
First Solar – The solar power systems maker saw its shares rise 2% after Susquehanna Financial changed it from “positive” to “neutral,” citing upbeat management comments on demand and prices for solar modules.
Capri Holdings – Shares of Capri Holdings rose 2% after MKM upgraded the stock to buy retainer. Parent company Michael Kors and Versace released quarterly results on Friday and raised its annual revenue forecast. “After a series of better-than-expected sales and earnings quarters (despite headwinds from wholesale and Europe), we have reinforced the belief that CPRI’s playbook is working in what has been a.” story to show “from its execution on acquisitions”, MKM mentioned.
Tesla – Tesla shares are up as Wall Street analysts continue to view the stock with optimism throughout the earnings season and Fed uncertainty. On Monday, Goldman Sachs included Tesla in companies with strong balance sheets that it advises customers to buy.
– CNBC’s Hannah Miao, Maggie Fitzgerald, Jesse Pound and Yun Li contributed reporting
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