Several companies moved sharply in premarket trading following index changes, earnings results, analyst upgrades, and major business developments. Reddit, Applied Materials, Wayfair, Workday, Fox Corporation, and Sandisk were among the stocks drawing investor attention.
Reddit Shares Surge After S&P 500 Addition
Reddit shares jumped 12% after S&P Dow Jones Indices announced that the social media company would join the S&P 500 beginning August 18. Reddit will replace AvalonBay Communities in the index.
The inclusion is expected to increase demand for Reddit shares as funds tracking the S&P 500 adjust their holdings.
Applied Materials Falls After Earnings Disappoint
Applied Materials shares declined more than 5% in premarket trading after the semiconductor equipment maker reported quarterly results that failed to meet investor expectations.
The company posted adjusted earnings of $3.50 per share on revenue of $9.12 billion. Revenue from its semiconductor systems division reached $7.04 billion, slightly above the FactSet consensus estimate of $6.96 billion.
Wayfair Gains Following Analyst Upgrade
Wayfair shares rose 4% after Bernstein upgraded the online furniture retailer to outperform from market perform.
Analysts highlighted the company’s ability to deliver high single-digit U.S. revenue growth despite a challenging furniture market environment with limited overall industry expansion.
Workday Extends Gains After Takeover Report
Workday shares climbed around 2% after gaining nearly 18% in the previous session following reports that private equity firm Silver Lake was in discussions to acquire the company.
The previous rally marked Workday’s strongest trading session in a decade.
Fox Corporation Rises After Analyst Upgrades
Fox Corporation shares gained 2% after receiving upgrades from JPMorgan and Wells Fargo.
Analysts pointed to momentum surrounding Roku, which Fox is acquiring in a $22 billion deal, as a key factor supporting the positive outlook.
Sandisk Climbs After JPMorgan Upgrade
Sandisk shares advanced 5% after a JPMorgan analyst upgraded the stock to overweight from neutral.
The analyst highlighted Sandisk’s long-term agreements, which have helped improve its margin profile and reduce business volatility by shifting more revenue toward long-term, high-margin contracts.
