As the Federal Reserve's stance on interest rates continues to shape market expectations, investors are closely monitoring a series of Fed speakers throughout the day. Amidst this backdrop, several stocks are making headlines with significant pre-market movements. Palantir Technologies (PLTR, Financial) has captured Wall Street's attention with a remarkable 17% surge in pre-market trading, following a stellar fourth-quarter performance that has reinforced the belief in the profitability of artificial intelligence. The company's U.S. commercial business saw a 70% growth in the fourth quarter, with a 44% increase in commercial customer count, signaling a stronger-than-anticipated embrace of AI technology.
Meanwhile, Pinterest (PINS, Financial) is experiencing a notable pre-market rise of over 3%, as analysts at Piper Sandler highlight the potential underestimation of its partnership with Amazon (AMZN, Financial). The collaboration, which could generate an incremental $120M in revenue for Pinterest this year, is showing a significant ad mix that may exceed initial expectations. This development not only bodes well for Pinterest but also suggests the possibility of future partnerships, with Google (GOOG) (GOOGL) being a potential candidate.
Spirit AeroSystems (SPR, Financial) is navigating through a period of uncertainty, with its stock seesawing in pre-market trading. The company has suspended its guidance for 2024 due to ongoing issues with Boeing's (BA, Financial) 737 Max jets and negotiations with Airbus (EADSF) (EADSY). Despite a mixed fourth-quarter report, Spirit AeroSystems has decided to withhold its outlook until there is more clarity on the production rate increases for the 737 MAX.
CleanSpark (CLSK, Financial) has announced its plans to expand its bitcoin mining operations with the acquisition of three facilities in Mississippi and a new facility under construction in Georgia. The company's strategic move, involving a total cash payment of $19.8M, is expected to significantly increase its operating hashrate, further cementing its position in the cryptocurrency mining industry.
In other market news, Taiwan Semiconductor Manufacturing (TSM, Financial) is set to bolster its global presence with the construction of a second chip fabrication facility in Japan. This expansion, supported by Sony (SONY, Financial), Denso, Toyota (TM, Financial), and the Japanese government, represents a significant investment exceeding $20B and is expected to enhance TSM's production capacity substantially.
Eli Lilly (LLY, Financial) has seen its shares trade higher in pre-market action following a robust fourth-quarter earnings report. The company's new diabetes and weight loss therapies have outperformed expectations, driving a 28% year-over-year increase in revenue. Despite competitive pressures, Eli Lilly's strong performance in these key therapeutic areas has contributed to its positive financial outlook.
DocuSign (DOCU, Financial) is undergoing a restructuring process that will result in a 6% reduction in its workforce, primarily affecting sales and marketing roles. The e-signature software leader is anticipating restructuring charges between $28M and $32M, as it aims to streamline operations and focus on growth as an independent public company.
Costco Wholesale (COST, Financial) has announced a transition in its executive team, with CFO Richard Galanti set to step down in March 2024. Gary Millerchip, formerly of The Kroger Co (KR), will take over as the new EVP and CFO. This change comes as Costco continues to navigate the competitive retail landscape.
Tractor Supply (TSCO, Financial) has declared an increased quarterly dividend, reflecting the company's financial strength and commitment to shareholder returns. The dividend hike is a positive sign for investors, signaling confidence in Tractor Supply's business model and future prospects.
Lastly, Bristol-Myers Squibb (BMY, Financial) faces a downgrade from Redburn Atlantic to Neutral, amidst concerns that challenges to its established products may outweigh the benefits of its recent acquisitions. The pharmaceutical company's strategy of rapid M&A to bolster its portfolio is being closely scrutinized as it deals with regulatory pressures and generic competition.
