Stocks making the biggest moves midday: Stitch Fix, DocuSign, Netflix and more

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Netflix’s revelation that it lost 200,000 subscribers in the first quarter put further pressure on an already beleaguered tech sector, but top tech analyst Mark Mahaney believes the current weakness in the sector presents several opportunities for investors.
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Here are the stocks making headlines on Friday, June 10.

Stitch Fix – The clothing retailer dropped 14% after Stitch Fix said it expected revenue to decline in the fiscal fourth quarter and announced layoffs. The company said it expected the layoffs to save it between $40 million and $60 million in the 2023 fiscal year. Stitch Fix’s third-quarter revenue came in at $493 million, which matched expectations, according to Refinitiv.

DocuSign – Shares of the electronic signature software vendor dropped a whopping 24% after the company reported weaker-than-expected earnings in its fiscal first quarter. Both earnings per share and revenue for the quarter missed analysts’ expectations per Refinitiv. DocuSign delivered 25% revenue growth from a year earlier, but investors are increasingly concerned with profitability. The company also got hit by three downgrades from Wall Street analysts.

Netflix – Shares of the streaming giant slipped 4% on a downgrade to “sell” by Goldman Sachs. The bank cited rising competition and a looming recession as major near-term threats to Netflix.

Illumina – The biotech stock dropped more than 9% after Illumina announced that its chief financial officer will leave next month. The current CFO, Sam Samad, is leaving for a similar role at Quest Diagnostics.

Kontoor Brands – Shares of the apparel brand sank 4.3% following a downgrade from Goldman Sachs. The investment firm said Kontoor could see margin pressure from rising costs and lower prices at wholesale retailers.

Roblox – Shares of the gaming company fell nearly 8% after Goldman Sachs downgraded Roblox to sell from neutral. “We have increasing concerns around the post-pandemic environment and expect a continuation of slowing growth, tough comps, & normalization of margins in the near-term,” Goldman said.

IHeartMedia –The radio stock tanked 9% following a downgrade from Morgan Stanley. The investment firm pointed to structural challenges for iHeart’s core business and a potential recession as headwinds for the stock.

Spirit Airlines – Shares of Spirit Airlines rose 2.6% after JPMorgan upgraded the stock to overweight. The firm said in a note to clients that a merger with Spirit and another airline is a “high probability outcome.” JetBlue and Frontier have made bids for Spirit, though it is unclear if the Department of Justice will approve an airline merger.

eBay – Shares of the e-commerce company fell more than 4% after Goldman Sachs downgraded the stock to sell from neutral. The Wall Street firm said it sees revenue growth risk with the global consumer environment under pressure. Goldman also cited eBay’s overexposure to international markets and its growth initiatives that have not scaled.

— CNBC’s Yun Li, Samantha Subin and Hannah Miao contributed to this report.

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