Pfizer, Moderna, and BioNTech are making headlines before the bell as their shares drop in premarket trading. Pfizer slashed its full-year revenue guidance $9 billion, citing declining demand for its Covid treatment and vaccine. However, Jefferies upgraded Pfizer, calling it an attractive buying opportunity. Meanwhile, Moderna and BioNTech saw their shares drop 4.1% and 5%, respectively. Novavax also shed 2.4%.
In other news, consumer products stock Colgate-Palmolive gained over 1% in premarket trading after being upgraded to buy from hold Stifel. The investment firm highlighted the strength of Colgate-Palmolive’s pet food line Hill’s and toothpaste as reasons for optimism about the stock. Similarly, Varonis Systems saw its shares rise 4.3% after Morgan Stanley raised its price target and upgraded the security software provider, citing the growth of generative AI as a driver for company growth.
However, Manchester United stock faced a decline of 8.8% due to news of British billionaire Jim Ratcliffe being in talks to acquire a minority stake in the soccer club for a valuation of over $3.3 billion. On the other hand, Rite Aid shares tumbled over 5% as the pharmacy chain filed for Chapter 11 bankruptcy protection in New Jersey. The company cited slowing sales, mounting debt, and lawsuits related to its alleged involvement in the nation’s opioid epidemic. Rite Aid has appointed Jeffrey Stein as its new CEO and reached a deal with creditors on a restructuring plan.
On a positive note, Lululemon saw a jump of over 5% in premarket trading. The athleisure company is set to be added to the S&P 500 on Wednesday, replacing Activision Blizzard following Microsoft’s takeover. TAL Education Group also experienced a 3.5% climb in its stock after receiving an upgrade to buy from UBS. The firm highlighted the stock’s attractive valuation and the rapid and profitable growth of TAL’s non-academic tutoring business as catalysts.
Lastly, Charles Schwab saw a slight dip in shares after posting mixed quarterly results. While the company’s earnings per share beat estimates at 77 cents, revenue fell slightly below expectations at $4.61 billion.
Sources: CNBC’s Hakyung Kim, Jesse Pound, Tanaya Macheel, Michelle Fox Theobald, and Lisa Han contributed reporting.