Stocks – Tesla, Cisco, MGM All Fall in Premarket

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By Geoffrey Smith — Stocks in focus in premarket trade on Thursday, 13th February. Please refresh for updates.

  • 9 AM ET: Shopify (NYSE:) stock was up 0.6%, extending its outperformance after reporting earnings on Wednesday that were well ahead of expectations.
  • That’s despite downgrades on valuation concerns from Credit Suisse (SIX:) and others since the move.
    • 8:57 AM ET: Apple (NASDAQ:) stock rose 2.4% after the company said it expects to reopen some of its stores in Beijing from tomorrow. Albeit with reduced opening hours.
  • 8:54 AM ET: Kraft Heinz (NASDAQ:) stock fell 1.9% after organic sales growth in the final quarter of 2019 came in below expectations.
  • U.S. organic sales fell 2.7% in the quarter, while overall organic sales fell 2.2%, more than the drop of 0.9% expected. The company still met forecasts for profit.
    • 8:48 AM ET: Tesla (NASDAQ:) stock fell 4.4% after the company said it wants to sell up to $2 billion in new stock to strengthen its balance sheet.
  • CEO Elon Musk has indicated he will buy up to $10 million of stock, or 0.5% of the shares on offer. That would result in a modest dilution of his holding in the company.
    • MGM Resorts (NYSE:) stock fell 2.9% after the company scrapped its guidance for the year, unable to quantify the hit to earnings from the closure of its casinos in Macau due to the Covid-19 outbreak.
  • The company also said long-serving CEO Jim Murren will step down ahead of schedule. He’ll stay on until a successor has been found. Murren had been responsible for diversifying MGM away from the casino business and into a broader portfolio of entertainment and hospitality operations.
    • Cisco Systems (NASDAQ:) fell 5.4% after predicting a prolonged soft patch in revenue as uncertainty caused by the Covid-19 outbreak keeps businesses away from making major investment decisions.
  • The company expects revenue to fall by between 1.5% and 3.5% in the current quarter.
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