Early Movers: Facebook SINKS, Arena REVERSES
Shares of Facebook (NASDAQ:FB) closed 2.63 percent in the red on Wednesday, and continued to decline in pre-market trading on Thursday. Lead underwriters of the social media company began publishing comments on Wednesday. Morgan Stanley (NYSE:MS) and Goldman Sachs (NYSE:GS) rated Facebook as a Buy, but Bank of America (NYSE:BAC) and Citigroup (NYSE:C) remained Neutral on shares.
Arena Pharmaceuticals Inc. (NASDAQ:ARNA) shares surged more than 28 percent in regular trading on Wednesday, but is trading lower this morning as hysteria calms over the company having won approval by the Food and Drug Administration for its weight-loss drug lorcaserin. It is the first obesity medication cleared for sale in the United States in 13 years. “Obesity threatens the overall well being of patients and is a major public health concern,” Janet Woodcock, director of the FDA’s Center for Drug Evaluation and Research, said in a statement, according to Bloomberg. “The approval of this drug, used responsibly in combination with a healthy diet and lifestyle, provides a treatment option for Americans who are obese or are overweight and have at least one weight-related comorbid condition.” Read More.
Quinstreet Inc. (NASDAQ:QNST) shares fell 1.82 percent in extended trading hours yesterday. The company agreed to pay $2.5 million to 20 states and turn over its G.I. Bill website after being accused of preying on veterans for their education benefits. QuinStreet, an Internet marketing and media company, called the agreement a “significant step forward in helping to clarify expectations for school advertising online, and for related website design and content,” according to the Washington Post.
Shares of Chipotle Mexican Grill Inc. (NYSE:CMG) dropped 5.69 percent on Wednesday and continued to stumble in early trading on Thursday. Research broker ITG projected below-consensus second-quarter revenue for the restaurant operator. The firm also said Chipotle’s sales look to be decelerating, but is “still experiencing industry-leading growth.”
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