SE - Hot Stocks: SE and IQ slip after earnings; HZNP down on FTC lawsuit; VOD fall on job cuts; AMD and VKTX gain

2023-05-16 12:56:20 ET

Major market averages were lower during Tuesday's midday session as investors await the outcome of the debt ceiling negotiations between congressional leaders and President Joe Biden.

Tracking individual stocks, Sea Limited ( NYSE: SE ) and iQIYI ( NASDAQ: IQ ) shares slipped following the release of the quarterly results.

Meanwhile, Advanced Micro Devices ( NASDAQ: AMD ) rose after investment firm Bernstein said the PC market looks to be "normalizing" at levels seen prior to the COVID-19 pandemic whereas Vodafone ( NASDAQ: VOD ) plunged amid weak guidance and job cuts.

In other pharma news, Viking Therapeutics ( NASDAQ: VKTX ) rose after VK2809 fulfilled the primary endpoint of a phase 2b study, while Horizon Therapeutics ( NASDAQ: HZNP ) fell after the Federal Trade Commission filed a lawsuit to prevent the company's $28 billion sale to Amgen ( AMGN ).

Gainers

Advanced Micro Devices ( AMD ) shares jumped 5% after Bernstein said the PC market looks to be "normalizing" at levels seen prior to the COVID-19 pandemic. Analyst Stacy Rasgon, who rates both AMD ( AMD ) market perform, noted that overall PC shipments were down nearly 30% year-over-year in the first-quarter, but they only look exceptionally bad when compared to levels seen during the pandemic.

Viking Therapeutics ( VKTX ) shares rose more than 8% after the company's VK2809 met the main goal of a phase 2b trial by showing statistically significant reductions in liver fat in patients with non-alcoholic steatohepatitis ( NASH ).

Decliners

Sea Limited ( SE ) shares plunged 16% after the company reported Q1 earnings that widely missed expectations due to a sharp increase in loan loss reserves. The company had $2B in total loans receivable as of March 31, though it had $281.1M in net allowance for credit losses and $177.4M in provision for credit losses, up 120.5% Y/Y.

iQIYI ( IQ ) shares dipped more than 9% despite better than expected Q1 earnings results. “This was another record-setting quarter for us. Both total revenues and membership services revenue reached all-time high. Meanwhile, our operating income continued to expand for the sixth consecutive quarter and our operating cash flow also expanded for the fourth consecutive quarter,” commented Mr. Jun Wang, Chief Financial Officer of iQIYI. “We have improved profitability, cash flow and balance sheet, and we aim to create more value for our stakeholders.”

Vodafone Group ( VOD ) shares dropped about 7% , inched close to a 52-week low, after earnings where the company offered downbeat FY2024 outlook: Adjusted EBITDAaL to be ‘broadly flat’ at around €13.3B and adjusted free cash flow of around €3.3B, down from €4.8B in FY2023 vs. analyst expectations of €3.6B. The company's new CEO set up a plan to cut 11,000 jobs in the coming three years, with "both HQ and local markets simplification."

Horizon Therapeutics ( HZNP ) stock shed as much as 15% after the Federal Trade Commission filed a lawsuit in Illinois federal court under seal. to block Amgen's ( AMGN ) $27.8B planned acquisition of Horizon Therapeutics ( HZNP ). "The Federal Trade Commission is seeking to block biopharmaceutical giant Amgen Inc. from acquiring Horizon Therapeutics plc, saying the deal would allow Amgen to leverage its portfolio of blockbuster drugs to entrench the monopoly positions of Horizon medications used to treat two serious conditions, thyroid eye disease and chronic refractory gout," the FTC said in the statement .

To keep track of Wall Street's biggest winners and losers throughout the session, head over to Seeking Alpha's On The Move section .

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