Stocks making the biggest moves before the bell: Broadcom, RH, Tesla, Penn Entertainment and more
Check out the companies making headlines in premarket trading: Broadcom — Shares of the semiconductor maker jumped nearly 17% after the company’s fiscal fourth-quarter earnings exceeded expectations. CEO Hock Tan said Broadcom is developing custom artificial intelligence chips with three large cloud customers. The company also said its AI revenue for the year more than tripled. RH — The luxury furniture retailer’s shares skyrocketed 13% in premarket trading after the company hiked its forward guidance. RH sees fourth-quarter revenue growth of 18% to 20% from a year earlier, citing “an acceleration of demand.” The company also swung to a profit in the third quarter. Tesla — The electric vehicle maker ticked 1% higher after Reuters reported that President-elect Donald Trump’s team recommended ending a rule for reporting car crashes. According to Reuters, Tesla has reported the most crashes under the program and the requirement has been disliked by CEO Elon Musk. Norwegian Cruise Line — The cruise stock popped 2.6% on the back of Barclays’ upgrade to overweight. “We like NCLH given its higher beta in a reaccelerating macro environment, exposure to cross-Atlantic travel in a year which we expect will see strong U.S. demand overseas,” the bank said. Penn Entertainment — The online sports betting stock popped 5.8% after being upgraded at JPMorgan to overweight from neutral. The bank said it sees a path to aggregate growth ahead as Penn Entertainment’s capital projects begin to bear fruit. Ciena — The networking equipment company advanced nearly 2% a day after posting its best performance since August 2023. Shares closed 15% higher on Thursday after Ciena issued strong first-quarter and fiscal 2025 revenue, despite the company falling short of Wall Street’s earnings expectations. On Friday, Bank of America upgraded the stock to a buy from neutral on the back of stabilizing demand and accelerated cloud and AI momentum. Upstart Holdings — Shares of the lending platform rose more than 4% after an upgrade to buy from hold at Needham. The investment firm said Upstart has “achieved a proper balance in funding” and strengthened its balance sheet. Centene — The health-care stock advanced 1.4% on the heels of UBS’ upgrade to buy from neutral. UBS called the stock “too cheap to ignore.” TaskUs — The outsourcing stock climbed 6.8% following Morgan Stanley’s upgrade to overweight from equal weight. The bank said TaskUs should be an AI beneficiary and has both “industry-leading” margins and a “competitive moat.” Canadian Solar — The renewable energy stock rose 2% after Mizuho’s initiation at an outperform rating. Mizuho believes investors have not fully priced in the value of growth within the energy storage business. PayPal — Shares of the financial technology stock traded 1.8% higher following Wolfe Research’s upgrade to outperform from peer perform. Wolfe said it sees potential upside to Wall Street estimates. Salesforce , ServiceNow — Salesforce shares gained 2%, while ServiceNow slid 1.1%. The moves come after KeyBanc Capital Markets issued a 2025 stock-specific outlook for enterprise software, upgrading Salesforce to overweight and downgrading ServiceNow to sector weight. The firm said Salesforce, which has rallied this quarter on a string of positive news around its AI products, still has “room for improvement.” The firm said ServiceNow is an “early AI leader” but has “little upside” at this point. — CNBC’s Pia Singh, Michelle Fox, Lisa Kailai Han, Yun Li, Sarah Min and Jesse Pound contributed reporting.
