Top Movers

Biotech and Fintech Lead Pre-Market Moves, Meme Stocks Rally

Pre-Market

By Bill Bullington

5/15, 06:24 EDT
AMC Entertainment Holdings, Inc.
Nu Holdings Ltd.
New York Community Bancorp, Inc.
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Key Takeaway

  • Arcutis Biotherapeutics (ARQT US) and Nu Holdings (NU US) lead pre-market gains with 24% and 6.49% increases, respectively, following strong financial reports.
  • Dlocal (DLO US) shares fall 27% due to disappointing earnings, while GameStop (GME US) and AMC Entertainment (AMC US) continue their meme stock rally with 11% and 10% rises.

Anticipation and Earnings Surprises

As the U.S. stock market teeters on the brink of setting new records, investors are holding their breath for an inflation report that could signal easing price pressures. With S&P 500 futures barely budging at 5,271.75, the stage is set for a day of cautious optimism and strategic moves.

Biotech and Fintech: A Mixed Bag

In the biotech realm, Arcutis Biotherapeutics (ARQT US) emerges as a pre-market victor, with shares catapulting 24% following a report of first-quarter sales that not only surpassed expectations but also highlighted a surge in demand for its dermatological prescriptions. On the flip side, the fintech sector faces a setback as Dlocal (DLO US) witnesses a 27% tumble in its shares after its first-quarter net income failed to meet analyst forecasts, casting a shadow over the Uruguayan company's financial health.

Meme Stocks and Strategic Shifts

The meme stock phenomenon refuses to fade, with GameStop (GME US) and AMC Entertainment (AMC US) continuing their ascent, marking an 11% and 10% increase, respectively. This rally underscores the ongoing appetite for high-risk, heavily shorted stocks. Meanwhile, New York Community Bancorp (NYCB US) enjoys a 5.9% uplift after announcing a strategic $5 billion mortgage warehouse loan sale to JPMorgan, a move lauded by analysts for bolstering the lender's capital and liquidity in alignment with its revamped strategy.

Emerging Markets and Tech Innovations

The spotlight also shines on Nu Holdings (NU US), which sees a 6.49% pre-market gain. The parent company of Nubank, a titan in the digital banking sector, reported record-breaking revenue and net income for the first quarter, outpacing analyst expectations. This success story, rooted in Brazil, is celebrated for its "open-ended growth opportunity" in a vast market. Similarly, Nextracker (NXT US) shares ascend 14% after forecasting an adjusted EBITDA for fiscal 2025 that exceeds estimates, buoyed by a robust $4 billion backlog that KeyBanc analysts believe significantly mitigates risks for the 2025 outlook.