Tesla, WeWork, Alibaba and more
Take a look at some of the biggest movers in the premarket:
Tesla (TSLA) – Tesla fell 2.5% in the premarket after cutting Model 3 and Model Y prices in China by up to 9%. The price cuts come amid signs of softening demand in China. Chinese EV makers are also seeing their shares under pressure, with Nio (NIO), down 10.4%, XPeng (XPEV), losing 11.3% and Li Auto (LI), falling 10.3%.
WeWork (WE) – The office-sharing company’s stock jumped 3.8% in the premarket after Cantor Fitzgerald rated it “overweight” in new coverage. Cantor notes that $2.7 billion in expenses have already been removed through cost cuts and optimizing the company’s real estate portfolio.
Alibaba (BABA) – Alibaba tumbled 12.3% in premarket trading after the release of weaker-than-expected China GDP data. The Chinese e-commerce giant saw the price of its US ADRs dip below their 2014 IPO level of $68 per share.
China Tech Stocks – China-based tech stocks are under pressure after President Xi secured a third leadership term, leading to speculation of a continued crackdown on the country’s tech sector. Among shares that trade in the U.S., JD.com (JD) tumbled 15.9% in the premarket, Baidu (BIDU) slid 12.7% and Tencent Music (TME) fell 11%.
Royal Philips (PHG) – Royal Philips fell 2.2% in premarket action after reporting a bigger-than-expected loss, with the Dutch medical equipment maker also saying it would be cutting 4,000 jobs, or about 5% of its workforce. Its results were hurt by supply chain issues as well as a sizeable recall of a sleep apnea device.
Myovant Sciences (MYOV) – Myovant jumped 8.1% in the premarket after the drugmaker agreed to be bought by a subsidiary of majority shareholder Sumitomo Pharma for $27 per share. That price is 10% above a prior offer by Sumitomo, which already owns 52% of Myovant.
ServiceNow (NOW) – ServiceNow added 2.5% in premarket trading after Guggenheim upgraded the stock to “buy” from “neutral.” The firm says the digital workflow software company has “admirable” profit margins and a dependable customer base.
Medtronic (MDT) – The medical equipment maker announced plans to spin off its patient monitoring and respiratory interventions unit into a separate company. Medtronic added 1% in premarket trading.
Williams-Sonoma (WSM) – The housewares retailer’s stock was downgraded to “underperform” from “hold” at Jefferies, which sees the shares underperforming under a more difficult economic environment. Williams-Sonoma fell 2.5% in premarket action.