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Check out the companies making headlines in premarket trading. Shopify — The e-commerce platform dropped more than 2% in premarket trading after the company’s investor day. Certainly, Wall Street analysts were somewhat positive after the event, with Citi’s Tyler Radke labeling Investor Day a “half victory lap.” Other analysts, including Trevor Young of Barclays, believe “shares here may be a little stronger” due to strong bullish sentiment on the stock. Asana – Shares of the task management software company fell more than 14% before the bell. Asana posted better-than-expected quarterly results and encouraging guidance, but management warned about ongoing macroeconomic headwinds. Billings for the period also fell short of Wall Street estimates. PayPal – Shares fell 1% in premarket trading after Bank of America downgraded PayPal from buy to neutral. Bank of America said the payments were due for the company’s “transition year” under new CEO Alex Criss. Capital One, Discover Financial – Shares of consumer finance companies Capital One and Discover Financial rose about 2% each after Bank of America upgraded them to buy from neutral. The firm noted that stocks could benefit from a soft landing in 2024. Builders FirstSource – The building materials stock climbed nearly 3% after a double upgrade to buy from investment firms B. Riley Securities and Benchmark. Both companies shared highlights at the company’s investor day on Tuesday. B. Riley said he sees the risks decreasing after this incident. Sphere Entertainment – Shares of the live entertainment company rose 3% after an upgrade to buy from Guggenheim Securities. Analyst Curry Baker noted optimism following the company’s disclosure that it anticipates profitability in the second quarter of 2024, adding that he expected “SPHR layers on traditional sponsorships (including naming rights) and a full slate of sponsorships as CY24 and CY25 Profitability will increase during the period.” Show/Residence.” Toast – Shares fell 2.8% after Bank of America downgraded it from buy to neutral. The bank said the restaurant service software company faces uncertain macro spending trends and increasing competition .—CNBC’s Samantha Subin, Jesse Pound and Michelle Fox contributed reporting
