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AMC buying and selling frenzy triggers buying and selling halts as inventory surges greater than 80%

AMC trading frenzy triggers trading halts as stock surges more than 80%

AMC multiplex movie theater.

NicolasMcComber | Getty Images

Shares of AMC Entertainment were briefly halted Wednesday after jumping more than 90% as the meme stock rally continues.

As trading resumed briefly only to be halted once more. At one point AMC shares changed hands as high as $61.90, far above its previous intraday high of $36.72, which occurred on Friday. Its closing record is $35.86, set on March 23, 2015, according to FactSet data.

Shares were trading at a brisk pace. More than 350 million shares have traded hands so far Wednesday. Its 30-day average volume is 143 million shares.

The stock frenzy comes despite a report that a hedge fund had sold its stake in the movie theater company. On Tuesday, AMC reported it had sold 8.5 million newly issued shares to Mudrick Capital, the latest in a series of capital raises for the stock, a favorite of Reddit traders. The hedge fund later turned around and sold all of its AMC stock for a profit, according to Bloomberg News.

AMC said in a securities filing that it raised $230.5 million through a stock sale to the investment firm. The movie theater operator said it would use the funds for potential acquisitions, upgrading its theaters and deleveraging its balance sheet.

AMC’s business was effectively halted during the pandemic, as cinemas were shuttered in most of the country for months. With no money coming in from ticket sales and concessions, AMC fell behind on its rent. On the brink of bankruptcy, short sellers swarmed the stock.

Retail investors inspired by Reddit chats have used their growing numbers to fight back. Last week, investors shorting the stock were estimated to have lost $1.23 billion as the shares rallied more than 116%, according to data from S3 Partners. The stock is up more than 2,800% year to date.

The company has been making special efforts to communicate with this new investor base. On Wednesday, it said it launched a new portal on its website for its retail investors. The site includes special offers, including a tub of free popcorn and exclusive movie screenings.

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Health

5 issues to know earlier than the inventory market opens Wednesday, June 2

5 things to know before the stock market opens Wednesday, June 2

Here are the most important news, trends and analysis that investors need to start their trading day:

1. June begins with muted trading on Wall Street

Traders work on the floor of the New York Stock Exchange.

NYSE

U.S. stock futures were relatively flat after the Dow gave up most of a 300-point gain by Tuesday’s close. The 30-stock average ended 45 points higher. The first day of June also started out muted for the S&P 500 and Nasdaq as optimism about the economic reopening met lingering angst about inflation. Following strength last month, the Dow and S&P 500 were less than 1% from their May record closes. The Nasdaq, which dropped in May, was nearly 2.9% away from its late April record close.

Offshore oil platforms are seen on April 20, 2020 in Huntington Beach, California.

Michael Heiman | Getty Images

U.S. oil prices jumped 1% on Wednesday to more than $68 per barrel, trading at levels not seen since October 2018. As more and more people are getting out and about in 2021 after months of stay-at-home precautions, U.S. benchmark crude prices have jumped 40% year to date. The spike in oil has been one of many commodities that have increased worries about price pressures in the recovering economy.

2. AMC soars again as it aims to connect with investors

One day after a similar gain, shares of AMC Entertainment skyrocketed 20% in Wednesday’s premarket to more than $38 each, a move that would put the stock at an all-time high at the open. AMC wants to connect with its shareholder base, announcing Wednesday morning a new way for investors in the movie theater chain to sign up for special benefits such as free popcorn.

AMC revealed Tuesday in a securities filing it raised $230.5 million in a stock sale to depressed debt firm Mudrick Capital Management. CNBC’s Andrew Ross Sorkin confirmed that Mudrick sold those new AMC shares immediately for a profit. As of Tuesday’s close, interest among retail investors on Reddit’s WallStreetBets forum pushed AMC shares up 1,400% in 2021.

3. Elon Musk tweets again, sending shares of ‘Baby Shark’ soaring

Shares of Samsung Publishing, a major shareholder in the producer of “Baby Shark,” soared in trading in South Korea trading Wednesday after a tweet by Tesla CEO Elon Musk about the viral children’s song. Musk wrote on Twitter on Tuesday evening: “Baby Shark crushes all! More views than humans.”

According to a Wall Street Journal report, the SEC admonished Musk last spring for allegedly violating terms of a settlement agreement. The financial regulators were incensed by Musk tweets about Tesla’s stock price being too high and those about solar rooftop production numbers without an attorney’s approval.

4. Coinbase Pro gives users option to trade red-hot dogecoin

A visual representation of digital cryptocurrencies Dogecoin and Bitcoin.

Yuriko Nakao | Getty Images News | Getty Images

Dogecoin jumped another 28% to 42 cents per unit Wednesday after Coinbase began offering its Pro users the option to trade the cryptocurrency, which started as a joke but has exploded higher this year. Helped by frequent tweets from Musk and other influencers, dogecoin went from trading at just fractions of a penny in January. However, even with those incredible gains, dogecoin was actually about 40% below last month’s all-time highs.

Monitors display Coinbase signage during the company’s initial public offering (IPO) at the Nasdaq market site April 14, 2021 in New York City.

Robert Nickelsberg | Getty Images

Coinbase, one of the world’s largest crypto exchanges, went public on the Nasdaq in April and soared as high as $429.54 per share on its first day of trading. The stock closed below its direct listing reference price of $250 last month, and it’s been languishing there for weeks. Coinbase rose about 1% in Wednesday’s premarket after closing up a similar amount Tuesday to $238.93.

5. Largest meat producer getting back online after cyberattack

Employees in the parking lot of the JBS Beef Production Facility in Greeley, Colorado, U.S., on Tuesday, June 1, 2021. A cyberattack on JBS SA, the world’s largest meat producer, has forced the shutdown of some of the largest slaughterhouses globally, and there are signs that the closures are spreading.

Michael Ciaglo | Bloomberg | Getty Images

The world’s largest meat processing company is getting back online after production around the globe was disrupted by a cyberattack just weeks after a similar hack shut down a major U.S. oil pipeline. Brazil’s JBS said late Tuesday it made “significant progress” in dealing with the attack and expects the “vast majority” of its plants to be operating Wednesday. Earlier Tuesday, the White House said JBS notified the U.S. government of a ransom demand from a criminal organization likely based in Russia.

— The Associated Press and Reuters contributed to this report. Follow all the market action like a pro on CNBC Pro. Get the latest on the pandemic with CNBC’s coronavirus coverage.

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Business

Meme inventory AMC extends rally, jumps 17% as theater chain sells new shares

Meme stock AMC extends rally, jumps 17% as theater chain sells new shares

Shares of AMC Entertainment surged again Tuesday after the theater chain sold more than 8 million shares to an investment firm, the latest in a series of capital raises for the struggling company turned meme stock.

AMC said in a securities filing that it raised $230.5 million through a stock sale to Mudrick Capital Management. The theater company said it would use the funds for potential acquisitions, upgrading its theaters and deleveraging its balance sheet.

Shares were up 17% in premarket trading.

AMC’s business was effectively halted during the pandemic, with movie theaters shut in most of the country for months and major studios delaying releases during the pandemic. However, the stock became a favorite of traders on Reddit and has seen wild swings in recent months.

The shares doubled last week on incredibly high volume as the speculative activity by retail traders driven by the message board ramped back up once again.

The company has taken advantage of those price surges by selling additional shares to raise cash. The stock is up more than 1,000% year to date.

“Given that AMC is raising hundreds of millions of dollars, this is an extremely positive result for our shareholders,” said AMC CEO and President Adam Aron in a filing. “It was achieved through the issuance of only 8.5 million shares, representing less than 1.7% of our issued share capital and only a small portion of our typical daily trading volume.”

AMC has around $5 billion in debt and needed to defer $450 million in lease repayments as its revenue largely dried up during the ongoing coronavirus pandemic. Theaters were closed for several months to help stop the spread of the virus, and when the company reopened its doors, few consumers felt comfortable attending screenings, and movie studios held back new releases.

Now, as vaccination rates continue to rise and the number of coronavirus cases decline, consumer confidence in returning to movie theaters has spiked. Not to mention, studios are finally releasing new content.

Over the weekend, John Krasinski’s “A Quiet Place Part II,” the sequel to his 2018 blockbuster, garnered $48.4 million over Friday, Saturday and Sunday, the highest three-day haul of any film release during the pandemic.

For the full four-day Memorial Day weekend, the North American box office tallied nearly $100 million in ticket sales.

Still, while initial box-office receipts are promising, fundamental elements of the movie theater business have changed in the last year, including theater capacity, shared release dates with streaming services and the number of days that movies play in theaters.

The securities filing from AMC, which closed Friday with a $11.8 billion market cap, also has a risk warning for investors: “Our market capitalization, as implied by various trading prices, currently reflects valuations that diverge significantly from those seen prior to recent volatility and that are significantly higher than our market capitalization immediately prior to the COVID-19 pandemic, and to the extent these valuations reflect trading dynamics unrelated to our financial performance or prospects, purchasers of our Class A common stock could incur substantial losses if there are declines in market prices driven by a return to earlier valuations.”

—With reporting by Sarah Whitten.

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Business

Asia’s greatest and worst inventory markets in Might battle Covid: India, Vietnam, Taiwan

Asia's best and worst stock markets in May battle Covid: India, Vietnam, Taiwan

Pedestrians wearing protective masks walk past the Bombay Stock Exchange (BSE) building in Mumbai, India, on Thursday, Jan. 21, 2021.

Dhiraj Singh | Bloomberg | Getty Images

India stocks were among Asia-Pacific’s top-performing markets in May, even as the country continues to grapple with tens of thousands of new cases every day.

For the month, the Nifty 50 rose 6.5% while the BSE Sensex was up 6.47%.

“The old phrase ‘go away and sell in May’ wasn’t true — at least for this month,” said Tuan Huynh, who is chief investment officer for Europe and Asia-Pacific at Deutsche Bank International Private Bank. “In the Indian case, I think it is relatively surprising.”

“The markets seem to like to differentiate between economic and obviously corporate earnings development versus then the rise of the new cases,” he told CNBC’s “Street Signs Asia” on Tuesday.

India has registered more than 28 million infections so far and is the second worst-hit country in the world in terms of caseload, according to data compiled by Johns Hopkins University. Daily cases have eased from the record high of over 400,000 at the start of May — but continue to hover above 100,000. That’s still quite high compared to other countries in the world.

U.S. investment bank Goldman Sachs is “overweight” on India, and expects stocks there to outperform.

“Markets tend to, as they say, live in the future and not in the present,” Timothy Moe, co-head of Asia macro research and chief Asia-Pacific equity strategist at Goldman Sachs, told CNBC last week.

He pointed out that there’s a “very concerning humanitarian crisis” in terms of a Covid surge in India. However, “the market is basically looking through that and expecting the rate of infections to come down, which indeed has taken place.”

Asia’s best and worst performers

Meanwhile, Vietnam was Asia-Pacific’s best-performing market in May — the VN Index jumping 7.15% for the month.

The gains came despite Vietnam’s Covid situation taking a turn for the worse in recent weeks. State-run media reported that social distancing measures were imposed in the country’s business hub Ho Chi Minh City starting Monday this week.

Elsewhere, stocks in Taiwan took a beating in May as rising cases of domestic infections prompted tighter restrictions.

The Taiex in Taiwan was Asia-Pacific’s worst performing market in May, and fell 2.84% for the month.

Taiwan was once hailed internationally for its initial response to the pandemic, which enabled life in Taiwan to remain largely undisturbed compared to elsewhere. However, a recent spike in infections has resulted in measures such as mandatory mask-wearing and limits on indoor and outdoor gatherings.

Total infections in both Vietnam and Taiwan remain comparatively low globally. Vietnam has reported more than 7,300 cases while Taiwan has seen at least 8,511 infections, according to Hopkins data.

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World News

Inventory futures begin month barely decrease after main indexes noticed beneficial properties in Might

Stock futures slip as Wall Street looks to rebound from losing week

Traders on the floor of the New York Stock Exchange.

Source: NYSE

Stock futures are slightly lower in overnight trading after major indexes saw gains in May.

Futures on the Dow Jones Industrial Average fell 30 points, or 0.09%. S&P 500 futures shed 0.09% and Nasdaq 100 futures ticked 0.04% lower.

The moves in overnight trading come after the blue-chip Dow and the S&P 500 gained 1.93% and 0.55% in May, respectively, to mark their fourth consecutive positive month. The S&P 500 closed Friday just 0.8% off its record high.

The small cap Russell 2000 rose 0.11% in May to post its eighth positive month in a row — its longest monthly win streak since 1995.

The Nasdaq gained 2.06% last week to post its best weekly performance since April. However, the tech-heavy composite lost 1.53% in May, breaking a 6-month win streak.

A key inflation gauge — the core personal consumption expenditures index — rose 3.1% in April from a year earlier, faster than the forecasted 2.9% increase. Despite the hotter-than-expected inflation data, treasury yields fell on Friday.

“Overall, given the market’s reaction to [Friday]’s PCE release, investor concerns about inflation may have been exaggerated — or perhaps already priced in,” Chris Hussey, a managing director at Goldman Sachs, said in a note.

“Consensus may be building that the inflation we are seeing today is ‘good’ inflation — the kind of rise in prices that accompanies accelerating growth, not a monetary policy mistake,” Hussey said.

Investors are awaiting the Federal Reserve’s meeting scheduled for June 15-16. Key for the markets is whether the Fed begins to believe that inflation is higher than it expected or that the economy is strengthening enough to progress without so much monetary support. 

May’s employment report, set to be released on Friday, will provide a key reading of the economy. According to Dow Jones, economists expect to see about 674,000 jobs created in May, after the much fewer-than-expected 266,000 jobs added in April.

Zoom Video Communications and Hewlett Packard Enterprise are set to report quarterly earnings results on Tuesday after the bell.

— CNBC’s Patti Domm contributed reporting.

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Health

5 issues to know earlier than the inventory market opens Thursday, Could 27

5 things to know before the stock market opens Thursday, May 27

Here are the top news, trends, and analysis that investors need to get their trading day started:

1. The S&P 500 opens flat after it has been pushed back in the direction of the receptacle

The Wall Street sign can be seen near the New York Stock Exchange (NYSE) in New York City on May 4, 2021.

Brendan McDermid | Reuters

US stock futures were relatively flat on Thursday and 10-year Treasury bond yields were up over 1.6% after a morning economic data burst. The market posted modest gains on Wednesday, helped by stocks tied to the economic reopening. The S&P 500 ended less than 1% after its record close on May 7th. With two trading days remaining in May, the Nasdaq rose nearly 2% over the course of the week, but rose 1.6% over the month. The Dow Jones Industrial Average and S&P 500 rose for the week and month.

Acorns announced Thursday that it will merge with Pioneer Merger Corp., a publicly traded special-purpose acquisition company. The SPAC deal valued Acorns at around $ 2.2 billion, more than double the previous private valuation. When the transaction is complete, Acorns will trade on the Nasdaq under the symbol OAKS, a nod to the company’s motto and analogy of growing acorns into “mighty oaks.” Comcasts Venture Arm and NBCUniversal are investors in Acorns. Comcast also owns CNBC.

2. Three reports provide more insight into the economic recovery

The government released three key economic reports on Thursday morning, an hour before the opening bell on Wall Street.

  • Initial jobless claims for last week fell more-than-expected to 406,000, another pandemic-era low compared to the unrevised 444,000 new claims the previous week.
  • The second estimate of the gross domestic product in the first quarter remained constant with an annual growth rate of 6.4%. In the fourth quarter of 2020, GDP rose by 4.3%.
  • Durable goods orders were down 1.3% in April. Economists had called for an increase of 0.9% after an upwardly corrected March plus of 1.3%.

3. The meme stock rally will pause after a month of comeback profits

SELINSGROVE, PENNSYLVANIA, UNITED STATES – 2021/01/27: A woman walks past the GameStop store in the Susquehanna Valley Mall. An online group sent GameStop (GME) and AMC Entertainment Holdings Inc. (AMC) share prices soaring to squeeze short sellers.

Photo by Paul Weaver / SOPA Images / LightRocket via Getty Images

This week’s meme stock rally should pause on Thursday. GameStop and AMC Entertainment stocks, popular with Reddit traders, were under pressure on the pre-market. However, GameStop rose nearly 16% on Wednesday alone and nearly 44% last month. AMC rose 19% on Wednesday and 70% last month. GameStop is up nearly 1,200% this year, including epic gains in January. AMC has gained 822% since the beginning of the year. Strategists attribute the recent surge in these stocks to overselling.

4. Round 2 for bank managers after fireworks at the hearing on Wednesday

Jamie Dimon, chairman of the board of directors of JPMorgan Chase & Co., speaks virtually on a laptop during a Senate Committee hearing on Banking, Housing and Urban Affairs held in Tiskilwa, Illinois, USA on Tuesday, May 25, 2021.

Daniel Acker | Bloomberg | Getty Images

The CEOs of the big banks are facing a second round of barbecue by the legislature, as they testify before the House Financial Services Committee. Fireworks went off at Wednesday’s Senate Banking Committee hearing as progressive Senator Elizabeth Warren chased JPMorgan Chase’s Jamie Dimon. The Massachusetts Democrat called Dimon about the bank’s nearly $ 1.5 billion overdraft fees last year when borrowers struggled during Covid lockdowns. According to Dimon, JPMorgan waived overdraft fees for customers asking for relief. When asked if the bank would reimburse the fees to those who didn’t, Dimon said, “No.”

5. Biden orders a closer look at the origin of Covid, including a possible Wuhan lab leak

During the visit of the World Health Organization (WHO) team tasked with investigating the causes of coronavirus disease (COVID-19) in Wuhan, Hubei Province, China, on February 3, 2021, security guards will be on guard in front of the Wuhan Institute of Virology.

Thomas Peter | Reuters

President Joe Biden has ordered a closer scrutiny of the intelligence services, which he said are two equally plausible scenarios for the development of the coronavirus. Biden announced that earlier this year he asked the intelligence services to assess “whether it was human contact with an infected animal or a laboratory accident.” The hypothesis that the virus may have escaped a Chinese laboratory has grown in importance in recent months. CDC director Dr. Rochelle Walensky said in a Senate testimony last week that a lab leak origin was “a possibility”. China has rejected the laboratory theory.

– Reuters contributed to this report. Follow all market action like a pro on CNBC Pro. With CNBC’s coronavirus coverage, you’ll get the latest information on the pandemic.

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Business

AMC brief sellers dealt huge $1.2 billion blow after inventory rally

AMC secures $100 million investment but bankruptcy concerns still loom

Street performers in Minnie Mouse costumes walk past an AMC movie theater in New York’s Times Square at night on October 15, 2020.

Amir Hamja | Bloomberg | Getty Images

Investors short of meme stock AMC Entertainment have lost an estimated $ 1.23 billion in the past week, as stocks are up more than 116% since Monday, according to S3 Partners.

The rally cooled off late Friday after AMC stock surged up to 38% during early morning trading. The stock closed at $ 26.12 per share on Friday, down from $ 13.68 on Monday. At its peak, the stock hit $ 36.72 per share.

AMC was by far the most active stock on the New York Stock Exchange on Friday as more than 650 million shares changed hands. According to FactSet, the average trading volume after 30 days is just over 100 million shares.

With 450 million shares outstanding, the entire company changed hands nearly 1.5 times during Friday’s trading.

So-called short coverage could add to AMC’s massive rally this week. The company has shorted about 20% of its outstanding shares, compared to an average of 5% short on a typical US stock, S3 Partners said.

When a sharply shortened stock bounces up quickly, short sellers are forced to buy back borrowed stocks to close their short position and reduce losses. The forced buy tends to drive the rally even further.

AMC’s new retail investors, who are 3.2 million strong, owned approximately 80% of the company’s 450 million shares outstanding as of March 11, AMC reported earlier this month. Their efforts, which soared in January, raised the stock from $ 5 to $ 20 per share and allowed AMC to reduce its debt burden by around $ 600 million.

The retail investor agenda was to keep AMC alive and hold onto the hedge funds, an analyst told CNBC.

AMC’s stock has risen more than 1,100% since January has defied the predictions of Wall Street analysts. AMC’s business was extremely strained. The company has roughly $ 5 billion in debt and has had to postpone repayments on lease agreements of $ 450 million as its revenues largely dried up during the ongoing coronavirus pandemic. The cinemas were closed for several months to stop the virus from spreading. When the company reopened its doors, few consumers were comfortable attending film screenings and film studios withheld new releases.

As the cinema business recovers, AMC is still facing tough headwinds. Although the company ended the first quarter with $ 1 billion in liquidity, the highest in its 100-year history, that money will only keep it afloat until 2022 unless audiences come back in droves for months without offsetting revenue.

While early box office revenues are promising, fundamental elements of the cinema business have changed over the past year, including theater capacity, joint release dates with streaming services, and the number of days that movies are shown in theaters.

“Anything that’s really important here in the long term will never make money to this company again,” said Rich Greenfield, co-founder of LightShed Partners, on CNBC’s “Squawk Box” Friday morning. “You will never generate cash with your current capital structure. It was trading at seven times EBITDA before the pandemic. It is currently trading at 25 times EBITDA and is now in a worse position with the changed industry. This is simply contrary to all logic . “

On the last day of 2019, AMC had a market value of $ 751.87 million. On Friday, that figure was around $ 11.9 billion, according to FactSet.

– CNBC’s Yun Li contributed to this report.

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Business

5 issues to know earlier than the inventory market opens Friday

Earnings reports, the Fed will test the market rally in the week ahead

Here are the most important news, trends and analysis that investors need to start their trading day:

1. Dow futures rise as stocks head for winning week

A Wall Street sign is seen near the New York Stock Exchange (NYSE) in New York City, May 4, 2021.

Brendan McDermid | Reuters

Futures contracts for the Dow Jones Industrial Average jumped more than 150 points on Friday morning, leading the way as Wall Street looked to head into Memorial Day weekend with a winning week. The Nasdaq Composite has been the best performer this week, rising nearly 2%, while the S&P 500 and Dow have added roughly 1.1% and 0.7%, respectively. For the month, the S&P 500 and Dow are positive while the Nasdaq is down 1.6%.

Dow futures were helped by Salesforce, which rose more than 4% in premarket trading after a stronger-than-expected first-quarter report.

2. Meme stocks surging again

People wear face masks as they walk by a movie theater during the coronavirus disease (COVID-19) pandemic in Newport, New Jersey, April 2, 2021.

Eduardo Munoz | Reuters

The renewed surge in so-called meme stocks that are popular on Reddit showed no signs of slowing on Friday morning. Shares of movie theater chain AMC jumped more than 20% in premarket trading, while GameStop was up nearly 5%.

AMC’s stock price has more than doubled over the past week, while GameStop could open at its highest level since March.

3. Biden to unveil $5 trillion spending proposal

U.S. President Joe Biden delivers remarks on the economy during a visit to Cuyahoga Community College in Cleveland, Ohio, May 27, 2021.

Evelyn Hockstein | Reuters

President Joe Biden is set to release a proposal that calls for $5 trillion in additional spending over the next decade, a source familiar with the proposal tells CNBC. The proposal also includes raising $3.6 trillion in spending over that time frame, leaving an additional net deficit of $1.4 trillion.

The new spending is for Biden’s proposals to boost and extend the economic recovery: the American Jobs Plan and the American Families Plan.

The plan calls for $300 billion of that spending to be included in the 2022 fiscal year budget, which would push the total spending to $6 trillion for that period, according to the source.

4. Microsoft warns that the SolarWinds hackers are back

The Russian hackers thought to be responsible for the SolarWinds cyberattack have launched another assault, this time using emails from the U.S. Agency for International Development, according to Microsoft. The group, known as Nobelium, sent phishing emails to more than 3,000 accounts using a marketing email address from the platform Constant Contact used by the aid industry, Microsoft said in a blog post. The attack has target organizations across at least 24 countries, and at least a quarter of those organizations are involved in international development, humanitarian, and human rights work, Microsoft said.

5. Cathie Wood downplays inflation

Cathy Wood

Crystal Mercedes | CNBC

Don’t count Ark Invest’s Cathie Wood among the major investors worried about inflation. The star fund manager said Thursday during a conference that deflation was actually a bigger concern, predicting that prices for commodities and key industrial inputs would fall later in the year once the demand crush of the economic reopening normalizes.

A deflationary environment would be good innovation tech stocks and bitcoin, Wood said. She is a long-time bull of both asset classes.

— Follow all the market action like a pro on CNBC Pro. Get the latest on the pandemic with CNBC’s coronavirus coverage.

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Business

Snowflake CEO urges buyers to be affected person with inventory throughout cloud transition

Snowflake CEO urges investors to be patient with stock during cloud transition

Snowflake CEO Frank Slootman said Wednesday that shareholders need to be patient with the company’s stock because the cloud transition is not happening overnight.

“Our business is really going to conduct itself really over considerable, long periods of time,” Slootman said in an interview with CNBC’s Jim Cramer on “Mad Money.” “That’s sort of the message to investors to really understand we’re signing on here for a journey that’s five to 10 years.”

The comments came as shares of Snowflake tumbled as much as 8% in extended trading after the company reported fiscal first-quarter results.

While revenue grew 110% year over year to a better-than-expected $228.9 million, the data-analytics software firm also reported a net loss of $203.2 million. That’s up from $93.6 million in the same period a year earlier. At the same time, Snowflake also raised its full-year guidance for product revenue.

Snowflake went public in September in a record-breaking IPO, with shares closing that initial trading day at $253.93. However, the stock was below that level at Wednesday’s close. Snowflake shares are also down 16% year to date, as investors have rotated out of high-flying growth names into economically sensitive companies that stand to benefit from the Covid recovery.

Despite the recent moves on Wall Street, Slootman stressed that the company’s software is only becoming more important as enterprises shift away from databases tied to hardware.

“These are big, big changes that we are experiencing in the marketplace, and we’re just super happy to be in the middle of that and be an enabler of that,” he said, adding that Snowflake places its focus on growing at scale. “We’re not a growth-at-all-costs company.”

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Business

Why Jim Cramer says to maintain shopping for dips within the inventory market

Why Jim Cramer says to keep buying dips in the stock market

Investors should benefit from market declines in the short term, CNBC’s Jim Cramer said Tuesday, suggesting that there are a number of positive catalysts that will drive stocks higher.

“The stock market is cyclical. When so many are running at once, the averages are usually pretty damn resilient,” said the host of “Mad Money,” shortly after the S&P 500 and the Dow Jones Industrial Average both fell % had decreased. “So I think you have to keep buying the dips. There is just too much to like.”

While he said the Federal Reserve would eventually adjust its highly accommodative monetary policy, Cramer claimed there was a “rush of minor bull cases” to support the market until the central bank’s actions pose a more imminent threat.

Most important among them is the resilient reopening of the economy this summer as Covid vaccinations allow for more activity, Cramer said. In addition to seeing more upside in cruise and casino stocks, Cramer was optimistic about theme park operators like Disney and Cedar Fair.

Mall operators like Simon Property Group and their tenants like L Brands and Gap have also recovered more than expected, Cramer said.

The booming economy is also lifting cyclical stocks from agricultural stocks like Deere to steelmakers Nucor, Cleveland-Cliffs and United States Steel Corporation, according to Cramer. He added that the real estate cycle still appears to be strong, which benefits stocks in areas like Lennar.

“Then there’s the bull market in health insurance,” Cramer said, pointing to UnitedHealth, Centene, Cigna, Humana and Aetna-Parent CVS. “They just say welcome aboard. They can be bought on any rare bath.”