Abdelrahman
Midday Trading Highlights: Key Market Movers
Here’s a summary of the companies making the most significant impacts during midday trading:
Novo Nordisk
Shares of Novo Nordisk surged by 4.9% after the Food and Drug Administration (FDA) announced on Friday that the shortage of its weight loss injection, Wegovy, as well as the diabetes medication, Ozempic, has been resolved following over two years of scarcity.
Hims & Hers Health
Conversely, Hims & Hers Health saw a dramatic drop of 22.9% after the FDA confirmed that the semaglutide shortage is officially addressed. The telehealth company offers a more affordable alternative to Wegovy and Ozempic through customized treatments, however, compounding pharmacies are restricted to selling brand-name medications when a shortage exists. The FDA’s recent ruling allows Hims & Hers to utilize its compounding facilities until May 22.
Alibaba
In a positive turn, Alibaba’s stock rose 5.7%, reaching a new 52-week peak after billionaire investor and GameStop CEO Ryan Cohen reportedly increased his stake in the e-commerce giant to around $1 billion.
UnitedHealth
Shares for UnitedHealth plummeted by 8.6% following reports from The Wall Street Journal regarding a Justice Department investigation. This investigation is focused on the insurer’s diagnostic recording practices that may result in additional Medicare Advantage payments. UnitedHealth responded, labeling any claims of fraudulent activities as "outrageous and false." The company’s stock has declined over 20% in the past three months amid ongoing scrutiny.
Booking Holdings
Booking Holdings enjoyed a 2% uptick in its stock price after the online travel platform reported adjusted earnings of $41.55 per share for the fourth quarter, surpassing the $36.03 that analysts from LSEG had anticipated. Revenue also exceeded forecasts, reaching $5.47 billion compared to the predicted $5.18 billion.
Dropbox
Dropbox’s shares experienced a decline of approximately 13.8% following mixed quarterly results. Although the company achieved a non-GAAP gross margin of 83.1% for the fourth quarter, it faced challenges despite meeting analyst expectations for adjusted earnings and revenue.
MercadoLibre
The Latin American e-commerce powerhouse MercadoLibre saw its stock rise 8.5% after reporting robust fourth-quarter performance, with earnings per share of $12.61 and revenues of $6.06 billion, both figures surpassing analysts’ expectations of $7.93 per share and $5.88 billion in revenue.
Akamai Technologies
Akamai experienced a significant drop of over 18% after issuing weaker-than-anticipated first-quarter guidance. The cloud computing company projected adjusted earnings between $1.54 and $1.59 per share, with revenue expectations ranging from $1 billion to $1.02 billion.
Insulet
Insulet, known for its insulin delivery systems, saw shares decrease by 2.8% after forecasting first-quarter revenue growth of 22% to 25%, slightly below the FactSet consensus of 23.1%. However, the company’s fourth-quarter results exceeded both revenue and earnings expectations.
Block
Shares of Block fell 17.2% following disappointing earnings and revenue figures for their fourth quarter. The fintech firm reported adjusted earnings of 71 cents per share and revenue of $6.03 billion, while analysts expected earnings of 87 cents per share with revenue of $6.29 billion.
Rivian Automotive
Finally, Rivian Automotive’s stock dipped by 5% after the electric vehicle manufacturer projected lower delivery numbers for 2025, anticipating between 46,000 and 51,000 units compared to the previous year’s deliveries of 51,579 vehicles. Despite this, the company reported its first quarterly gross profit, surpassing Wall Street’s earnings expectations.
For ongoing updates on market trends and company performances, stay tuned.
