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Roku, United Airlines, Lemonade, Zoom, and more

Here are the companies making headlines in midday trading.

Roku – Shares of the streaming device maker fell more than 3% after KeyBanc downgraded the company to an “industry weight” rating. The firm said that after the stock gains around 40% over the past month, “the positive fundamentals appear to be reflected [the] stock price. “KeyBanc said he felt more confident about Netflix, which he has an overweight rating on.

Lemonade ̵

1; Shares of the new public insurance company plunged 7% after Credit Suisse began hedging the stock with an underweight rating. The investment firm said in a statement that Lemonade “will need to significantly improve its retention and, in turn, the efficiency of the customer acquisition expense ratio to support current stock price levels.”

United Airlines – Shares in the airline fell more than 4% on the back of disappointing third-quarter results as the travel industry continues to falter amid the coronavirus pandemic. United reported a loss of $ 8.16 per share on revenue of $ 2.49 billion. Analysts had expected a loss of $ 7.53 per share on revenues of $ 2.5 billion, according to Refinitiv.

Charles Schwab – The e-broker was up more than 3% after beating the highs and last lines of the third quarter results. Schwab reported earnings of 48 cents per share on revenue of $ 2.45 billion. Analysts had expected earnings of 46 cents per share on revenue of $ 2.43 billion, according to Refinitiv. Schwab added 592,000 new accounts in the third quarter and recorded an average of 1.5 million daily active trades.

Zoom – Shares of the video conferencing firm rose nearly 4% after AB Bernstein raised its 12-month price target on Zoom Video to $ 611 per share from $ 228 per share. This is the highest target price of any large company, according to FactSet. Bernstein is “increasingly optimistic about operational metrics and new product releases,” the company said.

Alcoa – Aluminum stock fell nearly 6% despite the company reporting better-than-expected third-quarter results. Alcoa said in a statement that it expects quarterly results for the fourth quarter to be flat for its bauxite segment and lower for its alumina segment.

Brinker International – Restaurant shares rose more than 6% after an upgrade to outperform BMO Capital Markets’ market performance. The company said in a statement that Chili’s parent company was set to beat earnings expectations once the pandemic was over.

Sleep Number – Shares of the bedding maker rose more than 8% after the company reported quarterly results that exceeded analysts’ expectations. Sleep Number reported a profit of $ 1.79 per share on revenue of $ 531.2 million. Analysts interviewed by Refinitiv expected earnings per share of $ 1.06 on revenues of $ 523.5 million. The company also said its “online and phone sales” increased 111% over the same period last year.

Fastly – Shares of Fastly fell more than 24% after the cloud computing service provider cut its third-quarter revenue guide, citing an “uncertain geopolitical environment” and a decline in usage by its largest TikTok customer. Fastly said it now expects third-quarter revenue of $ 70 million to $ 71 million, lower than a previous forecast of $ 73.5 million to $ 75.5 million. It also withdrew the forecast for the full year.

Walgreens – Walgreens shares were up 4% after the pharmacy chain posted better-than-expected earnings and issued upbeat guidance. Walgreens earned $ 1.02 per share in its fiscal fourth quarter, beating a Refinitiv estimate of 96 cents per share. The results were supported by higher sales in US pharmacies. The company also said it expects single-digit profit growth in the second half of its fiscal 2021 period.

– Yun Li, Pippa Stevens, Maggie Fitzgerald, Fred Imbert and Michael Bloom of CNBC contributed to this story.

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