A Tesla Service and Sales Center is shown on June 3, 2022 in Vista, California.
Mike Blake | Reuters
Check out the companies making headlines on Wednesday afternoon.
Tesla, Twitter – Tesla’s shares fell 5.5% after Tuesday’s news confirmed that CEO Elon Musk had agreed to buy Twitter for $54.20 per share, the original price he agreed for the acquisition would have. Shares in Twitter tumbled 1% and took a breather after rising more than 22% on Tuesday.
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Morgan Stanley, Goldman Sachs – Shares in Morgan Stanley and Goldman Sachs fell 2.3% and 2.8%, respectively, after downgrades from Atlantic Equities. The company said the two investment banks have few positive catalysts ahead as they continue to grapple with macroeconomic challenges. Morgan Stanley was downgraded to neutral from overweight and Goldman Sachs was downgraded 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 upside potential of about 30%. The Wall Street firm said Airbnb is on track to become the largest travel platform for western travel in the next five years.
Mardi Gras — Cruise ship stocks fell as a group. Carnival’s shares fell 7%, Royal Caribbean Group 3.5% and Norwegian Cruise Line Holdings 3.4%. The group received a boost a day earlier after Norwegian announced it would end all Covid-19 testing and vaccination requirements.
Enphase Energy, Sunrun – Solar stocks declined on Wednesday after rallying earlier this week. Enphase Energy shares lost 13% and Sunrun fell 9.5%.
Schlumberger – Energy stocks rose as a group after OPEC+ decided to cut oil production by 2 million barrels a day. Schlumberger is up 6.4%, Exxon Mobil is up 4.3% and Phillips 66 is up 3%.
Lamb Weston Holdings – Shares of the food company rose 4.7% after Lamb Weston reported big increases in net sales and net income for the 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 reporting a decline in volume for the quarter.
Lumen Technologies — Shares of the tech company plunged 10.3% to a 52-week low after Wells Fargo cut its price target on Lumen by 56% and downgraded the stock from overweight to equal weight. Wells Fargo said its mass-market segment sees downsides that put dividends at risk.
– CNBC’s Alexander Harring, Yun Li, Jesse Pound and Carmen Reinicke contributed coverage.