Stocks Rise and Fall Ahead of Market Opening

NEW YORK, NY — U.S. stocks exhibited notable movements in premarket trading Monday, with several companies making headlines due to analyst ratings and anticipated developments. Tesla‘s stock surged nearly 3% after Morgan Stanley analyst Adam Jonas named the electric vehicle manufacturer a top pick in the U.S. auto sector, predicting a potential 50% price increase.

Conversely, shares of Southwest Airlines fell by 2% following a downgrade from JPMorgan, which shifted the stock’s rating from neutral to underweight. Analyst Jamie Baker expressed concerns over the airline’s stock valuation, stating, “I remain convinced that Southwest’s best margin and ROIC [return on invested capital] days lie in the past.”

In the cryptocurrency market, shares of Coinbase and Robinhood rose by 9% and 8% respectively after former President Donald Trump announced new details for a U.S. strategic crypto reserve. Trump reported that the reserve would include not only Bitcoin but also Ether, and additional high-risk assets such as XRP, Solana’s SOL token, and Cardano’s ADA, leading MicroStrategy‘s stock to climb 13% as well.

Allegro MicroSystems saw a remarkable 15% increase in shares. Bloomberg reported that the chipmaker has attracted takeover interest from ON Semiconductor, with additional potential buyers eyeing the automotive sector. ON Semiconductor’s shares rose about 1% in tandem with the news.

Capri Holdings experienced an 8% jump in shares after Bloomberg cited sources indicating that Prada may be nearing a deal to acquire Versace from Capri for approximately 1.5 billion euros, or $1.6 billion. This potential transaction could finalize within the month.

Aurora Innovation shares increased nearly 9% after Morgan Stanley initiated coverage with an overweight rating, projecting that autonomous trucking offers a “transformational” earnings opportunity. The firm highlighted Aurora’s advantageous position to capitalize on this trend.

In other developments, AppLovin shares gained nearly 6% following the company’s announcement of changes to its buyback program. Meanwhile, shares of Mosaic Company rose by almost 3% after JPMorgan upgraded the agricultural chemicals stock from neutral to overweight, predicting price increases in key fertilizer categories by 2025.

Chipotle Mexican Grill‘s stock gained 2% following an overweight upgrade from Morgan Stanley. The firm believes the restaurant chain’s stock currently represents an attractive entry point for investors. SanDisk’s shares also added 2% after Morgan Stanley initiated coverage with an overweight rating, despite anticipating a challenging near-term outlook. The firm expects a potential stock rally of 90% within 12 months.

Lastly, Okta‘s shares rose by 2% as investors awaited the release of the identity and access management company’s fiscal fourth-quarter earnings results, scheduled for this Monday evening.