Hot stocks: COIN rallies; WTO and AEHR Climb on Earnings News; RVMD drops on stock offering
Coinbase (COIN) rose further in midday trading on Wednesday. The stock was boosted by gains in the cryptocurrency market and the company’s lack of exposure to some of the recent high-profile crypto meltdowns.
Earnings news stayed also a key enabler. Omnicom (NYSE: WTO) and Aehr test systems (AEHR) both rebounded in the wake of their respective quarterly results.
Looking at one of the major decliners of the day, Revolution Medicines (RVMD) lost ground following the pricing of a stock offering.
Coinbase (COIN) surged in midday trading after revealing it was not exposed to three high-profile crypto meltdowns. Shares of the crypto exchange rose 17% after a blog post split from Celsius, Voyager and Three Arrows.
“We did not engage in these types of risky lending practices and instead focused on building our finance business with caution and a deliberate customer focus,” COIN said. The stock was also helped by a further rise in Bitcoin (BTC-USD), which rose above $24,000.
Meanwhile, earnings news prompted buying Omnicom (OMC). The global marketing company beat expectations with its quarterly profit, with revenue holding steady with last year’s figure of around $3.6 billion. The main figure exceeded consensus by $100 million.
“As we enter the second half of the year, we are in a strong financial position and our company is well prepared to weather economic headwinds,” said CEO John Wren. Based on the results, OMC was up 5% in intraday action.
Aehr Test Systems (AEHR) was another post-earnings gainer, climbing 14% after reporting revenue that jumped 166% from a year ago. The company said its effective backlog now exceeds $25.5 million.
The pricing of a stock offering led to a sharp intraday decline in Revolution Medicines (RVMD). The stock fell 8% on the news, falling to a level of around $22.74 around 12:30 p.m. ET.
The fall came as the company priced an increased common stock offering worth $230 million. The stock was priced at $20 a share.
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