Take a look at the companies making headlines in midday trading. Zoom Video Communications – The software stock posted nearly 2% ahead of its third-quarter earnings after the market closed. Analysts polled by FactSet are expecting $1.08 per share in earnings and revenue of $1.12 billion for the quarter, compared to the company’s guidance of between $1.07 and $1.09 per share. the earnings and between $1.115 billion and $1.120 billion in revenue. Paramount Global – Shares of the entertainment giant came close to 7%. The Professional Fighters League announced Monday that it has completed the acquisition of the Bellator mixed martial arts brand from Paramount. Penn Entertainment – The gambling stock jumped 7% on the heels of Bank of America’s upgrade to buy from neutral. The company said shares could get a boost from ESPN Bet, the company’s new sportsbook. Spectrum Brands Holdings – Shares fell 2% after Wells Fargo downgraded the home goods company to equal weight from overweight, saying it is less convinced about fundamentals. Microsoft – Shares jumped 1.9% after Microsoft announced that former OpenAI CEO Sam Altman and chairman and chairman of the board Greg Brockman will join the tech giant to head up a research team new artificial intelligence. Analysts viewed the hiring as a positive tool for Microsoft in the long term. Nvidia – Shares of the chip giant rose about 1%. Raymond James reaffirmed Nvidia as a strong buy ahead of Nvidia’s third-quarter fiscal report due late Tuesday, predicting “another strong quarter.” The company is expected to have earned $3.37 per share on revenue of $16.19 billion, according to consensus estimates from FactSet. Boeing – The aerospace stock jumped 4% after Deutsche Bank upgraded the shares to a buy rating from a hold. The Wall Street firm said aircraft deliveries are accelerating, which could lead to a positive turn in free cash flow revisions. Chegg – Shares of the education technology company fell 5% after being downgraded to overweight from equal weight by Morgan Stanley. The bank said the stock’s recent run higher created an unattractive risk/reward and noted that Chegg is seeing weaker web traffic and download trends. Krispy Kreme – Shares of the donut chain declined 2% after being downgraded by JPMorgan to neutral from overweight. Analysts said that while Krispy Kreme has great underlying appeal, the company has execution issues. Iovance Biotherapeutics – The biopharmaceutical stock rose nearly 9% after Goldman Sachs initiated coverage of the company with a buy rating and a $12 price target, suggesting the stock could more than double from Friday’s close. The company said Iovance is developing “best-in-class” tumor-infiltrating autologous lymphocyte therapies for solid tumor cancers and is optimistic about its commercial potential. Carpet – Shares of the world leader in construction machinery fell 1.3% after HSBC started coverage of the stock at a hold level. The company said it likes the stock for its “prime position,” but downgraded its rating due to headwinds facing the US appliance market. United Rentals – United Rentals fell about 2% after director Terri Kelly said Friday it was selling 630 shares of the equipment rental company, according to a regulatory filing. Kelly still owns 6,249 shares. Bristol Myers Squibb – Shares fell nearly 4% after the drug company, along with 2seventy bio , announced a delay in obtaining an extended license for Abecma for earlier lines of triple-class open or refractory multiple myeloma. Energizer Holdings – Shares of the battery maker fell more than 2% midday after UBS downgraded the stock to neutral from buy. “We believe the risk/reward is no longer attractive as current valuation remains above recent history,” said analyst Peter Grom. JPMorgan, Morgan Stanley and RBC Capital Markets have all cut the stock’s ratings also recently.—CNBC’s Alex Harring, Yun Li, Lisa Kailai Han, Sarah Min and Michelle Fox contributed reporting.
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