CRM - Hot Stocks: WMG PRAA drop on earnings news; NVAX surges; CRM sets 52-week high

2023-05-09 17:46:06 ET

Concerns about the U.S. debt ceiling negotiations contributed to a modest stock decline on Tuesday. Investors also expressed caution ahead of key inflation data due out the following day.

Focusing on individual movers, Novavax ( NVAX ) surged on a collection of headlines, including quarterly results, restructuring details and new clinical trial data. Meanwhile, Salesforce ( NYSE: CRM ) ticked higher, bucking the overall downward pressure on Wall Street, to set a new 52-week high.

On the downside, Warner Music ( WMG ) dropped following the release of its quarterly results. Earnings news also sparked selling in PRA Group ( PRAA ), which lost nearly a third of its value after the firm announced disappointing financial figures.

Standout Gainer

Novavax ( NVAX ) received a wave of buying interest following the release of quarterly results , a restructuring plan and new clinical trial data. Shares jumped 27% on the news.

NVAX revealed Q1 revenue that rose about 89% from last year. Meanwhile, the vaccine developer announced a plan to cut its global workforce by 25%, part of a restructuring meant to "strengthen our cash position and our potential for the long-term growth and stability."

In addition, the company announced results from a Phase 2 trial for three respiratory vaccine candidates: COVID-Influenza Combination, stand-alone influenza and high-dose COVID.

At one point during Tuesday's trading, NVAX climbed more than 50%. Shares gave up a chunk of their early gains but still recorded a finish of $9.52, up $2.07 from the previous day's close. This marked its highest close since mid-April.

Standout Decliner

A disappointing profit figure weighed on Warner Music ( WMG ). Shares of the music giant dropped about 10%.

While the company's revenue growth of just over 1% broadly matched expectations, WMG fell short on the bottom line. The company reported Q2 GAAP EPS of $0.06, half of the $0.12 that analysts had predicted.

Commenting on the quarter, the firm's CFO said "macroeconomic, currency and release slate headwinds continued to impact our revenue this quarter." However, the company's CEO added "with continued momentum in music publishing, and a more robust schedule that includes the return of worldwide superstars and new artists breaking globally, we are optimistic about the second half of the year."

Stung by the earnings news, WMG ended trading at $25.76, a decline of $2.73. This extended a recent downtrend, with the stock falling about 20% over the past month. Shares reached their lowest close since last November.

Notable New High

Salesforce ( CRM ) pushed higher again on Tuesday, adding to recent gains. This allowed shares of the CRM software provider to finish above $200 for the first time in about 13 months.

The Dow component reached as high as $203.80 during the session, setting a fresh intraday 52-week high . Shares trimmed their gains from there, eventually finishing at $201.18, a gain of $3.28 on the day.

This marked the first close above $200 since April of 2022. Shares have advanced about 4% in the past week, allowing the stock to tick above a recent trading range and resume gains seen earlier in the year. The stock has climbed about 49% so far in 2023.

Notable New Low

Dragged down by weaker-than-expected quarterly results , PRA Group ( PRAA ) plummeted to a fresh 52-week low, with shares of the debt buyer cratering 30%

The company, which specializes in acquiring and collecting nonperforming loans, missed expectations on both its top and bottom lines. This included a surprise loss for the quarter, as well as revenue that plunged 35% from last year.

With the financial figures, PRAA slumped to a new 52-week low of $18.72. A recovery late in the day allowed the stock to finish at $23.95, although that still represented a slide of $10.44 from the previous day's close.

The stock had reached a 52-week high of $43.34 in late February but has now fallen about 45% since that point.

To see more of Wall Street's best- and worst-performing stocks, head over to Seeking Alpha's On The Move section .

For further details see: