Palantir, Lucid, Li Auto, Chegg, Beyond Meat, RingCentral, and More: U.S. Stocks to Watch

Dow Jones2023-08-08

U.S. stock futures declined Tuesday after Moody’s Investors Service downgraded its debt ratings on a number of small and midsize U.S. and said it may downgrade the credit ratings on six major U.S. banks, including U.S. Bancorp and State Street.

These stocks were poised to make moves Tuesday: 

Palantir Technologies (PLTR) was up 0.8% in premarket trading after reporting second-quarter adjusted earnings and revenue that met analysts’ estimates and raising its financial guidance. The software company also said it would be buying back $1 billion of stock, Palantir ‘s first repurchase program since the shares began trading in 2020.

Lucid (LCID) reported a wider-than-expected second-quarter loss and sales that missed estimates but the rose 3.7% in premarket trading after the electric-vehicle maker said it remained on track for production of more than 10,000 units in 2023.

Li Auto (LI) beats Q2 top and bottom line estimates; expects Q3 deliveries of vehicles to be between 100,000 and 103,000 vehicles, representing an increase of 277.0% to 288.3% from the third quarter of 2022. While shares dropped about 4% in premarket trading.

Chegg (CHGG) jumped 23.5% after the online learning software posted better-than-expected second-quarter sales, and laid out a new AI-focused strategy. CEO Dan Rosensweig said Chegg launched the beta version of its generative AI experience in May and that feedback has been very positive. 

Paramount Global (PARA) was rising 3.8% after it agreed to sell book publisher Simon & Schuster to KKR for $1.62 billion in cash. The media giant also reported second-quarter adjusted earnings that beat analysts’ estimates.

RingCentral (RNG), the cloud-based telecommunications provider, said founder Vlad Shmunis would be stepping down as chief executive later this month and transitioning to executive chairman. RingCentral’s new CEO will be Tarek Robbiati, who came from Hewlett Packard Enterprise (HPE), where he most recently served as chief financial officer. RingCentral shares tumbled 10.5%.

Beyond Meat (BYND) declined 16% after second-quarter revenue dropped 30% to $102.1 million and the maker of plant-based meats reduced its revenue forecast for the year.

International Flavors & Fragrances (IFF) tumbled 21.6% after cutting its sales forecast for the year.

U.S. Bancorp (USB) declined 1.2% and State Street (STT) fell 1.2% after Moody’s placed the credit ratings of six major U.S. banks on review for downgrade. Also on review for downgrade were Bank of New York Mellon (BK), Northern Trust (NTRS), Cullen/Frost Bankers (CFR) and Truist Financial  (TFC). Commerce Bancshares (CBSH) and BOK  Financial (BOKF) were among the smaller banks that had their debt ratings downgraded.

Earnings reports are expected Tuesday from Eli Lilly (LLY), United Parcel Service (UPS), Zoetis (ZTS), Datadog (DDOG), Rivian Automotive (RIVN), Take-Two Interactive (TTWO), Twilio (TWLO), Lyft (LYFT), and AMC Entertainment (AMC).

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