A Tesla service and sales center is shown in Vista, California, June 3, 2022.
Mike Blake | Reuters
Check out the companies making headlines in midday trading Wednesday.
Tesla, Twitter — Shares of Tesla fell 5.5% after a Tuesday filing confirmed that CEO Elon Musk agreed to buy Twitter for $54.20 per share, the original price he’d agreed upon for the acquisition. Shares of Twitter slumped 1%, taking a breather after surging more than 22% on Tuesday.
Morgan Stanley, Goldman Sachs — Shares of Morgan Stanley and Goldman Sachs dropped 2.3% and 2.8%, respectively, following downgrades from Atlantic Equities. The firm said the two investment banks have few positive catalysts ahead as they continue to deal with macro challenges. Morgan Stanley was downgraded to neutral from overweight, and Goldman Sachs was lowered to underweight from neutral.
Airbnb — Shares of the travel rental company fell 1.5% even after Bernstein initiated the stock as outperform with a price target of $143, indicating an upside of about 30%. The Wall Street firm said Airbnb is on track to become the biggest travel western travel platform over the next five years.
Carnival — Cruise line stocks declined as a group. Shares of Carnival fell 7%, Royal Caribbean Group dropped 3.5%, and Norwegian Cruise Line Holdings declined 3.4%. The group got a boost a day earlier, after Norwegian said it would end all Covid-19 testing and vaccination requirements.
Lamb Weston Holdings — Shares of the food products company climbed 4.7% after Lamb Weston reported large increases in net sales and net income for its fiscal first quarter. Lamb Weston’s adjusted earnings of 75 cents per share beat analyst estimates of 50 cents per share, according to StreetAccount. The Idaho-based company also maintained its full-year outlook despite seeing a volume decline in the quarter.
Lumen Technologies — The tech company’s shares plummeted 10.3% to a 52-week low after Wells Fargo cut its price target on Lumen 56% and downgraded the stock from overweight to equal weight. Wells Fargo said its mass market segment was seeing downsides that put the dividends at risk.
— CNBC’s Alexander Harring, Yun Li, Jesse Pound and Carmen Reinicke contributed reporting.