Business
Target Downgraded While UnitedHealth Rallies on Buffett’s Stake
NEW YORK, NY — Several companies made headlines in the pre-market session on Friday.
Target saw its shares fall nearly 2% after Bank of America downgraded the retailer from neutral to underperform. The bank commented that Target’s long-term outlook is worsening, suggesting it is falling further behind its competitors. Additionally, Target and Ulta Beauty announced the end of their partnership.
In contrast, UnitedHealth experienced an 11% surge in premarket trading. This increase followed the announcement that Berkshire Hathaway, led by Warren Buffett, acquired a stake of five million shares, valued at about $1.6 billion. Prominent investors such as Michael Burry and David Tepper have also reported significant holdings in UnitedHealth. If the gains continue, this day could mark the company’s best performance in five years.
Applied Materials witnessed a sharp decline of approximately 14% after the company’s outlook for the current quarter fell short of analyst expectations. Despite this, Applied Materials reported fiscal third-quarter earnings and revenue that exceeded Wall Street’s predictions.
Intel‘s stock rose more than 3% in early trading, building on a 7% gain from Thursday. The chipmaker’s growth is attributed to reports that the Trump administration is negotiating to acquire a stake in the company, which could help finance its new factories in Ohio.
On the flip side, Sandisk‘s shares plummeted nearly 11% after it announced that its fourth-quarter non-GAAP gross margin dropped to 26.4% from 36.4% the previous year.
Rivian, the electric vehicle manufacturer, saw a slight decrease of 1%. The company indicated that changes to fuel economy standards under the Trump administration are affecting $100 million in revenue tied to regulatory credit contracts.
Lastly, Hims & Hers encountered a 2.7% drop following a Bloomberg report stating that the Federal Trade Commission is investigating the company’s business practices. The regulatory body is reviewing if Hims & Hers complicates the cancellation process for customers.
