Hot Stocks: HOOD job cuts; FFIV drops on earnings; KHC climbs; MAT takeover chatter
One-time meme-stock darling Robinhood (NASDAQ:HOOD) hit yet another hurdle in Wednesday's midday action, falling to a new low after announcing job cuts. F5 Networks (FFIV) lost ground as well, hurt by the release of its quarterly results.
Meanwhile, earnings news had the opposite impact on Kraft Heinz (KHC), which advanced on better-than-expected financial figures. Mattel (MAT) was also higher in intraday trading, boosted by reports that it has held preliminary discussions to sell itself to private equity suitors.
Robinhood (HOOD) suffered selling pressure after revealing that it has been forced to cut back on staffing levels in an effort to fuel improved efficiency. Shares fell about 5% in midday action after announcing it was slashing headcount by 9%.
Commenting on the move, Vlad Tenev, the fintech's CEO, said rapid headcount growth during its recent wave of expansion "has led to some duplicate roles and job functions and more layers and complexity than are optimal."
The list of midday decliners also included F5 Networks (FFIV). Shares of the cloud security company plunged nearly 13% after the release of disappointing guidance along with the firm's latest earnings report.
FFIV surpassed projections with its Q2 bottom line but slashed its revenue forecast in the face of supply chain challenges. The company now sees 2022 revenue growth of 1.5% to 4%. Previously, the firm had targeted expansion of around 4.5% to 8%.
A better-than-expected quarterly report sparked intraday gains in Kraft Heinz (KHC). Shares rose nearly 2% after the packaged food maker topped analysts' consensus by about 13%.
KHC's revenue dropped about 5% from last year to reach $6.05B, beating estimates by $240M. The firm also raised its expectations, saying it now expects 2022 organic new sales growth in the mid-single-digit percentage range.
Mattel (MAT) also showed midday strength, rising 10% on takeover chatter. According to the Wall Street Journal, the toy maker has held talks with private equity firms regarding a possible transaction. The media outlet said MAT had early-stage informal talks with PE firms like Apollo Global (APO) and L Catterton.
For more of the day's biggest movers, head over to Seeking Alpha's On The Move section.