Pedestrians stand in front of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, March 13, 2020.
Mark Kauzlarich | Bloomberg | Getty Images
This is a live blog. Check back for updates.
8:26 am: Short-sellers up more than $6 billion betting against energy stocks
Data compiled by S3 Partners shows short sellers have made more than $6 billion in profits by betting against energy stocks as companies in the space are ravaged by oil’s historic plunge. Energy Transfer and Enbridge have yielded the most mark-to-market profits for energy ck short sellers at more than $690 million each in 2020. Those betting against energy have also made over $220 million by betting against Kinder Morgan. —Imbert
8:23 am: Bank of America downgrades Tesla, cites high valuation after stock’s recent run
Bank of America downgraded Tesla on Wednesday after the electric car maker’s recent rally pushed its valuation too high in the firm’s eyes. The bank slashed its rating on Tesla to underperform from neutral, while lowering its 12-month price target to $485 from $500. The new target represents a near 30% decline from Tuesday’s close of $686.72. The bank’s analyst applied average enterprise value to sales and enterprise value to cash flow multiples from “comparable companies” to Tesla and found it was now significantly overvalued. Shares of Tesla have soared 31% this month alone, bringing its 2020 gains to more than 64%. — Li
8:08 am: Chipotle rallies 6% as digital sales surge 81% amid virus outbreak
Chipotle Mexican Grill stock rose more than 6% in premarket trading Wednesday after the company said digital sales more than doubled in March and grew 81% for the quarter. That helped the company report positive same-store sales growth of 3.3% despite widespread coronavirus lockdowns. The burrito chain reported earnings per share of $3.08 versus the $2.90 expected after improvements to its mobile app, partnering with DoorDash and Uber Eats and offering free delivery since March 15. — Franck
7:58 am: Wall Street analysts see more upside in Netflix after the company’s earnings report
The streaming giant surpassed analyst expectations for the first quarter reporting almost 16 million subscribers for the first quarter on Tuesday after the bell. “While the stock has outperformed the rest of our coverage universe this year and throughout the COVID-19 crisis, we believe the outperformance is justified given Netflix’s unique position of being exposed to secular growth that is accelerating as a result of worldwide stay-at-home orders,” Deutsche Bank said.
The feeling was similar at Canaccord. “We are raising our subscriber and revenue estimates again, and while there could be some near-term pull-forward of subscriber additions, we think over time Netflix is well-positioned as the global streaming entertainment leader, continuing to take share from linear TV.” Shares of the stock are down 1.65% in premarket trading. — Bloom
7:54 am: Netflix down 1.4% after conservative Q2 subscriber guidance
Shares of Netflix fell 1.4% in premarket trading Wednesday despite a sizable jump in subscribers in the first quarter. Though the streaming giant said it added more than double the number of paid net subscribers expected for the first quarter at 15.8 million, Netflix cautioned that its forecast for the second quarter is a far thinner 7.5 million net adds as governments start to relax stay-at-home orders. “The actual Q2 numbers could end up well below or well above that, depending on many factors including when people can go back to their social lives in various countries and how much people take a break from television after the lockdown,” the company said Tuesday. — Franck