Biggest stock movers today: LUV, ADM, ORCL, ACAD, and more

Biggest stock gainers

• Oracle’s (NYSE:ORCL) stock soared over 12% after strong FQ3 results and a positive outlook. CEO Safra Catz highlighted a 29% increase in total Remaining Performance Obligations, reaching over $80B. Catz attributed this growth to new cloud infrastructure contracts, noting that demand for their Gen2 AI infrastructure surpasses supply. Oracle expects 43% of the $80B obligations to convert to revenue in the next four quarters and anticipates continued hypergrowth in their Gen2 Cloud Infrastructure business, up 53% in Q3. Additionally, Oracle (ORCL) plans to announce a partnership with Nvidia (NVDA) next week.
• Bilibili’s (NASDAQ:BILI) stock rose 6% after JPMorgan upgraded it to Neutral from Underweight, raising the price target to $11. The upgrade reflects a more balanced risk/reward profile, with Bilibili targeting double-digit revenue growth in 2024, which is in line with consensus (+14% Y/Y). Analysts note competition from Douyin in game streaming but expect Bilibili’s new game launches to drive revenue reacceleration.

• Archer Daniels Midland (NYSE:ADM) shares surged more than 4% despite reporting Q4 adjusted EPS and revenues below Wall Street expectations. ADM disclosed that some employees have received subpoenas from the U.S. Department of Justice related to an ongoing investigation into its nutrition business, which delayed the release of its financial results. For FY 2024, ADM forecasts earnings of $5.25-$6.25/share, down 18% from 2023, but in line with analyst estimates. The company expects “mid single digit revenue growth” and higher operating income in its nutrition segment. ADM also added $2B to its stock buyback authorization.

Biggest stock losers

• Shares of Acadia Pharmaceuticals (NASDAQ:ACAD) experienced a 17% decline after announcing that its late-stage study of pimavanserin for treating negative symptoms of schizophrenia did not meet its primary endpoint. The study showed no statistically significant improvement over placebo. Despite a consistent safety profile, Acadia does not plan further clinical trials with pimavanserin.
• Vail Resorts (NYSE:MTN) shares plunged about 6% following lower-than-expected FQ2 earnings results. Season-to-date skier visits were down 9.7% due to poor skiing conditions exacerbated by challenging weather, leading to fewer visitors. As a result, Vail Resorts lowered its net income guidance for 2024 to between $270M and $325M, with resort reported EBITDA expected to be between $849M and $885M. The forecasted resort EBITDA margin is approximately 29.6%, compared to 39.4% for the previous three months. Despite the earnings miss, the company increased its dividend by approximately 8%.
• Southwest Airlines (NYSE:LUV) shares dropped over 7% after revealing potential issues with Boeing’s aircraft deliveries, which may lead to a reduction in FY2024 capacity plans. The airline revised its 1Q24 guidance, predicting a flat increase in Revenue per Available Seat Mile and an increase in Available Seat Miles. Economic fuel costs are now expected to range from $2.95 to $3, and the company increased its interest expense outlook by $65M. Despite a net loss in 1Q24, Southwest expects a return to profitability in March.
• American Airlines (NASDAQ:AAL) shares fell 4% after revising its 1Q24 earnings forecast due to rising fuel costs. The carrier now expects to pay between $2.80 and $2.90 per gallon of jet fuel, resulting in a quarterly adjusted diluted EPS of approximately -$0.15 to -$0.35, compared to the consensus of -$0.23. Despite this, AAL maintains its forecast for Available Seat Miles to grow between +6.5% and +8.5% Y/Y in Q1, with total revenue per available seat mile projected to decline between -3.5% and -5.5% year-over-year. The airline also reaffirmed its FY2024 outlook, expecting adjusted diluted EPS between $2.25 and $3.25, compared to the consensus of $2.51.