Why is the price rising? Why is it falling? Here are a few comments on the unusual fluctuations affecting stock prices on the NYSE today. Only if they are reliable and documented: we avoid nonsense whenever possible! The fluctuations are taken into account at the time of writing.
High:
Target company
Target shares rose 14% after reporting second-quarter results that beat market expectations. The retailer raised its full-year earnings forecast and now expects adjusted earnings between $9 and $9.70 per share for fiscal 2024, up from previous guidance of $8.60 to $9.60. This positive revision comes on the back of strong earnings performance in the first half of the year. Target’s adjusted earnings per share for the quarter rose to $2.57, beating analyst estimates of $2.18. Total revenue rose 2.7% to $25.45 billion, also beating Wall Street’s forecast of $25.21 billion. The company’s gross margin improved to 28.9%, driven by cost improvements.
Keysight Technologies shares rose 12% after the company reported better-than-expected third-quarter results. The electronic test and measurement equipment maker reported adjusted earnings per share of $1.57, beating Wall Street’s estimate of $1.35, although it declined from the year-ago period’s earnings of $2.19. Revenue also beat expectations, coming in at $1.22 billion versus analysts’ forecast of $1.19 billion. CEO Satish Dhanasekaran forecast higher orders for the second half of the year than the first, suggesting stability and growth areas in commercial communications.
Toll Brothers
Toll Brothers rose 6% after the luxury homebuilder raised its annual earnings forecast. The company now expects earnings per share in the range of $14.50 to $14.75 for fiscal 2023-24, along with an adjusted gross margin of about 28.3%. For the third quarter, Toll Brothers reported earnings per share of $3.60, slightly lower than last year’s $3.73, but highlighted a significant outperformance of its adjusted gross margin due to favorable mix and increased efficiency. Revenue from residential sales rose 2% to $2.72 billion, helped by an 11% increase in the number of homes delivered. The value of signed contracts also rose 11% to $2.41 billion.
Down:
JD.com
Shares of JD.com fell as much as 10% after Walmart announced the sale of its entire stake in the Chinese e-commerce company in a deal valued at $3.74 billion. Walmart’s exit from JD.com signals a shift in focus to its own operations in China, particularly its warehouse business Sam’s Club. The sale reflects the broader challenges facing China’s e-commerce sector, including intense price competition and weak consumer demand that have put pressure on sales growth and margins. Shares of JD.com have struggled, falling about 70% since their peak three years ago. The downturn in the Chinese retail market, caused by low consumer confidence and economic worries, has further dented JD.com’s performance and contributed to the share price decline.
Bitfarms
Meanwhile, in the crypto mining sector, Bitfarms has announced a bold move: it is acquiring Stronghold Digital Mining for $125 million in stock, assuming around $50 million in debt in the process. The boards of both companies have given the green light, and the deal is scheduled to close in the first quarter of 2025, subject to Stronghold shareholder approval, regulatory approval, third-party consent, and customary closing conditions. Under the terms, Stronghold shareholders will receive 2.52 Bitfarms shares for each Stronghold share, representing a 71% premium to Stronghold’s 90-day volume-weighted average price on Nasdaq as of August 16. Following the merger, Stronghold shareholders will own around 10% of the combined company, with Gregory Beard, CEO and chairman of Stronghold, stepping in as an advisor. The market reacted quickly: Bitfarms shares fell 16% after the announcement and are now at -5%, while Stronghold shares soared over 65%.
