A look at some of the companies in the spotlight in midday trading: Dell Technologies – The software stock plunged 18% after executives warned that gross margins could come under further pressure in 2025. Lionsgate Studios – Shares rose 3% after Citi initiated coverage of the film studio with a buy recommendation. The bank noted Lionsgate’s decision to spin off its Starz business would be a potential catalyst for further margin expansion. Zscaler – Shares rose 9% after the cloud security company beat expectations on earnings and revenue for its fiscal third quarter. Zscaler reported adjusted earnings per share of 88 cents on revenue of $553 million, while analysts surveyed by LSEG were expecting earnings per share of 66 cents on revenue of $535 million. Nordstrom – Shares rose 5% after the Seattle-based department store operator reported solid quarterly sales growth and defended its full-year outlook.Nordstrom Rack, the company’s off-price chain, outperformed Nordstrom’s flagship brand, with same-store sales up 7.9% year over year. But Nordstrom missed Wall Street expectations with its quarterly profit. Gap — The clothing retailer soared 29% after first-quarter earnings per share of 41 cents, beating analysts surveyed by LSEG’s estimate of 14 cents. Gap’s revenue of $3.39 billion also beat expectations of $3.29 billion. Ambarella — Shares soared 21% after the company said it expects revenue to continue growing in fiscal 2025, driven by growing demand for artificial intelligence. Ambarella reported a first-quarter profit loss that beat analysts’ expectations and revenue in line with consensus. Marvel Technologies — Shares slumped 10% after the company missed first-quarter profit expectations. Marvel reported earnings of 24 cents a share on revenue of $1.16 billion, below analysts’ expectations of 25 cents a share on revenue of $1.17 billion, according to LSEG. MongoDB — Shares plummeted 24% after the technology company lowered its second-quarter guidance and full-year outlook. MongoDB said it expects earnings of 46-49 cents a share on revenue of $460-464 million, while analysts surveyed by LSEG were expecting earnings of 58 cents a share on revenue of $470 million. The company beat April-quarter earnings and revenue expectations, but consumption growth was weaker than expected. SentinelOne — Shares of the cybersecurity company fell 13% after it issued a weaker-than-analysts-expected revenue outlook. SentinelOne expects 2024 revenue to be between $808 million and $815 million, below LSEG’s forecast of $817 million. VF Corporation — The apparel and footwear company jumped 8% after it announced that San Cho would become global brand president of Vans starting in late July. Cho was previously Lululemon’s chief product officer. Cooper Companies — The medical device company rose 5% after second-quarter adjusted profit beat expectations, but revenue fell short of analysts’ expectations. Cooper also raised guidance for both its full-year profit and revenue outlook. Paycom Software — Shares fell 9% after the payroll company announced executive changes. Paycom promoted strategic adviser Randy Peck to chief operating officer and revealed the resignation of co-CEO Christopher Thomas. First Solar — Shares fell 2% after Mizuho downgraded the solar technology company to neutral from buy. Analyst Maheep Mandroj highlighted that strong pricing power already appears to be priced into the stock for now. CNBC’s Hakyung Kim, Yun Lee, Jesse Pound and Pia Singh contributed to this report.
Biggest movers at midday: GPS, MDB, DELL
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