Check out the companies making headlines before the bell: GameStop — Shares dropped more than 20% after the video game retailer said it plans to sell 45 million common shares of its stock. It also posted preliminary results that showed a sales decline in the first quarter. Reddit — The social media company rallied 10.5% after announcing a partnership with OpenAI. Under the deal, Reddit will gain certain artificial intelligence features powered by OpenAI, while the ChatGPT maker will gain access to Reddit’s Data application programming interface to train its AI models. Take-Two Interactive Software — Shares of the video game company were down more than 2% after an update about the timing of the new Grand Theft Auto game. Take-Two says the game will now come out in the fall of 2025. Previous guidance called for sometime in the 2025 year. Snowflake — The stock edged lower by 0.3% after Bloomberg Law , citing sources familiar, said the cloud computing company is in discussions to acquire startup Reka AI for more than $1 billion. Doximity — Shares of the online networking company surged nearly 18% after beating estimates in the fourth quarter on the top and bottom lines. Adjusted earnings per share of 25 cents and revenue of $118 million surpassed forecasts from analysts surveyed by LSEG that called for 20 cents in earnings per share and $116 million in revenue. Doximity also reported in-line revenue guidance for the first quarter. Globant SA — The stock dropped more than 3% after Globant issued second-quarter earnings and revenue guidance that fell short of estimates, even as first-quarter results came in line with expectations. The IT company anticipates adjusted earnings in the range of $1.47 per share to $1.52 per share, weaker than the earnings of $1.57 per share anticipated by analysts polled by FactSet. Expected revenue of $585 million to $589 million was weaker than the $590.2 million consensus estimate. Cracker Barrel Old Country Store — Shares tumbled nearly 15% after the restaurant chain announced it was cutting its dividend to 25 cents from $1.25, an 80% decrease, to support its strategic transformation plan. Applied Materials — The chipmaker’s shares added 1.2% after reporting a beat in second-quarter earnings and roughly in-line revenue. The company posted earnings of $2.09 per share, excluding items, on revenue of $6.65 billion, while analysts polled by FactSet called for adjusted earnings of $1.99 on revenue of $6.54 billion. Several firms, including Goldman Sachs and Citigroup, moved their price targets higher on the back of the report. DXC Technology — Shares dropped more than 23% after DXC Technology issued first-quarter earnings and revenue guidance that fell short of expectations, even as fourth-quarter results topped estimates. The information technology company expects earnings of 55 cents to 60 cents per share in the first quarter, weaker than the FactSet consensus estimate of 76 cents in earnings per share. Revenue guidance of $3.1 billion to $3.150 billion was less than the anticipated $3.3 billion. — CNBC’s Brian Evans, Michelle Fox, Hakyung Kim, Yun Li, Jesse Pound and Pia Singh contributed reporting.
Source: www.cnbc.com