Biggest movers in pre-market trading: Tesla, Broadcom, Dave & Buster’s and others

The premarket trading session saw several companies making headlines, with Tesla leading the pack. The electric vehicle maker’s shares surged by 7% after CEO Elon Musk announced that both his $56 billion pay package and the company’s move to incorporate in Texas were set to pass a shareholder vote. Despite criticism from some shareholders, the resolutions were approved, leading to a positive market reaction.

Broadcom also saw a significant jump in its share price, rising nearly 14% after reporting better-than-expected earnings and revenue. The chipmaker posted adjusted earnings per share of $10.96 for the fiscal second quarter, beating analysts’ estimates of $10.84. Revenue came in at $12.49 billion, surpassing the projected $12.03 billion. Additionally, Broadcom announced a 10-for-1 stock split, further boosting investor confidence.

On the flip side, Dave & Buster’s and Oxford Industries experienced declines in their stock prices after missing sales and earnings expectations. Despite reporting revenue of $588 million for the first quarter, Dave & Buster’s fell short of analysts’ projections of $621 million. Similarly, Oxford Industries’ adjusted earnings of $2.66 per share and $398.2 million in revenue were below Wall Street estimates, leading to a 4% drop in its share price.

Virgin Galactic also faced a setback, with its shares slipping by 8.5% following the approval of a 1-for-20 reverse stock split by the board of directors. Trading below $1, the space tourism company is struggling to regain investor confidence. Conversely, Kimberly-Clark saw a 2.2% increase in its stock price after receiving a double upgrade to buy from Bank of America. The consumer packaged goods company, known for brands like Huggies and Kleenex, is poised for structural changes, according to the firm.

NextEra Energy Partners and Corning faced downturns in their stock prices, with NextEra Energy Partners retreating by 3.2% after a Barclays downgrade to underweight. Barclays cited concerns about the company’s convertible equity portfolio financing as a significant overhang on its stock. Similarly, Corning saw a 1% decrease in its share price following a downgrade to equal weight from overweight by Morgan Stanley. The firm believes that the stock’s risk-reward ratio is more balanced after a notable rally earlier in the year.

In summary, the premarket trading session showcased a mix of positive and negative developments for various companies. While Tesla and Broadcom enjoyed significant gains on strong earnings and positive resolutions, Dave & Buster’s, Oxford Industries, Virgin Galactic, NextEra Energy Partners, and Corning faced challenges that impacted their stock prices. Investors will be closely monitoring these companies as they navigate through the market volatility and strive to deliver value to their shareholders.