Take a look at some of the biggest movers in the premarket:
Slack Technologies (WORK) – The provider of the popular workplace messaging platform announced a $600 million debt offering due in 2025, convertible into cash, stock, or a combination of both depending on the holder’s preference.
Zoom Video Communications (ZM) – Credit Suisse downgraded the video communications platform company to “underperform” from “neutral,” saying the current share price reflects greater conversion to paid usage than will actually occur.
JetBlue (JBLU) – JetBlue is burning through $10 million per day as it deals with the coronavirus outbreak, according to CEO Robin Hayes. He told employees in a memo that only 7,000 customers per day are flying right now, as opposed to the typical 120,000.
Delta Air Lines (DAL) – CEO Ed Bastian told employees that the airline is preparing for a 90% revenue drop for the second quarter and that “we know we still haven’t seen the bottom.” Separately, Berkshire Hathaway (BRKB) disclosed in a Securities and Exchange Commission filing that it had sold 18% of its shares in Delta as well as 4% of its holdings in Southwest Airlines (LUV).
United Airlines (UAL), American Airlines (AAL) – The carriers both announced further reductions in flights to the New York City area, one of the current hotspots in the COVID-19 outbreak.
Wells Fargo (WFC) – The bank said it was capping its participation in the government’s coronavirus loan program at $10 billion, due to regulatory constraints which cap its assets at $1.95 trillion.
Boeing (BA) – Boeing is extending the suspension of its Washington State production operations, and declined to say when production might resume.
Kraft Heinz (KHC) – Kraft Heinz is adding shifts at plants that make packaged foods such as macaroni and cheese, due to a spike in demand stemming from stay-at-home orders.
General Motors (GM) – GM is seeking to extend maturities on $6 billion in revolving loans rather than refinance a $16.5 billion credit facility, according to a Reuters report.
Gilead Sciences (GILD) – Gilead has increased the production of its experimental coronavirus drug remdesivir. Gilead is making the drug available through clinical trials and other special programs.
Spotify (SPOT) – The music streaming service was downgraded to “market perform” from “strong buy” at Raymond James, which said the increased indoor time for consumers is driving less engagement and fewer downloads. The firm said the trend is also creating potential market share shift to Amazon Music due to increased smart speaker listening.
Walgreens (WBA) – The drugstore operator’s stock was upgraded to “neutral” from “sell” at UBS, which points to valuation as well as other factors.
EBay (EBAY) – The online marketplace was upgraded to “buy” from “neutral” at Guggenheim. The firm said eBay is attractively valued, has a strong balance sheet and cash flow, and no inventory risk.