Check out the companies making headlines in premarket trading. Broadcom — Shares of the semiconductor maker jumped nearly 17% after the company’s fiscal fourth-quarter earnings exceeded expectations. CEO Hock Tan said that Broadcom is developing custom artificial intelligence chips with three large cloud customers. The company also said its artificial intelligence revenue for the year more than tripled. RH — The luxury furniture retailer’s shares skyrocketed 13% in premarket trading after the company hiked its forward guidance. RH sees fourth-quarter revenue growth of 18% to 20% from a year earlier, citing “an acceleration of demand.” The company also swung to a profit in the third quarter. Tesla — The electric vehicle maker ticked 1% higher after Reuters reported that President-elect Donald Trump’s team recommended ending a rule for reporting car crashes. Reuters reported that Tesla has reported the most crashes under the program and that the requirement has been disliked by CEO Elon Musk. Norwegian Cruise Line — The cruise stock popped 2.6% on the back of Barclays’ upgrade to overweight. “We like NCLH given its higher beta in a reaccelerating macro environment, exposure to cross-Atlantic travel in a year which we expect will see strong U.S. demand overseas,” the bank said. Penn Entertainment — The online sports betting stock popped 5.8% after being upgraded at JPMorgan to overweight from neutral. The bank said it sees a path to aggregate growth ahead as Penn Entertainment’s capital projects begin to bear fruit. Ciena — The networking equipment company advanced nearly 2% a day after posting its best performance since August 2023. Shares closed 15% higher on Thursday after Ciena issued strong first-quarter and fiscal 2025 revenue, despite the company falling short of Wall Street’s earnings expectations. On Friday, Bank of America upgraded the stock to a buy from neutral on the back of stabilizing demand and accelerated cloud and AI momentum. Upstart Holdings — Shares of the lending platform rose more than 4% after upgrade to buy from hold at Needham. The investment firm said Upstart has “achieved a proper balance in funding” and strengthened its balance sheet. Centene — The health care stock advanced 1.4% on the heels of UBS’ upgrade to buy from neutral. UBS called the stock “too cheap to ignore.” TaskUs — The outsourcing stock climbed 6.8% following Morgan Stanley’s upgrade to overweight from equal weight. The bank said TaskUs should be an AI beneficiary and has both “industry-leading” margins and a “competitive moat.” Canadian Solar — The renewable energy stock rose 2% after Mizuho’s initiation at an outperform rating. Mizuho believes that investors haven’t fully priced in the value of growth within the energy storage business. PayPal — Shares of the financial technology stock traded 1.8% higher following Wolfe Research’s upgrade to outperform from peer perform. Wolfe said it sees potential upside to Wall Street estimates. Salesforce , ServiceNow — Salesforce shares gained 2%, while ServiceNow slid 1.1%. The moves come after KeyBanc Capital Markets issued a 2025 stock specific outlook for enterprise software, upgrading Salesforce to overweight and downgrading ServiceNow to sector weight. The firm said Salesforce, which has rallied this quarter on a string of positive news around its AI products, still has “room for improvement.” The firm said ServiceNow is an “early AI leader” but has “little upside” at this point. — CNBC’s Pia Singh, Michelle Fox, Lisa Kailai Han, Yun Li, Sarah Min and Jesse Pound contributed reporting
Flushing Financial, a New York-based commercial real estate lender, is seeking to raise $70 million to shore up its capital, CNBC has learned.
The bank’s CEO, John Buran, has told potential investors that he intends to sell low-yielding bonds and loans backed by commercial real estate, including multifamily buildings, moves that would generate a loss and necessitate the sale of fresh stock, people with knowledge of the deal told CNBC.
Bankers working on the deal have yet to finalize pricing, but it will likely be between $15 to $15.50 per share, according to one of the people, below the $17.25 level the stock closed at on Thursday.
The bank declined to comment to CNBC earlier Thursday, but later issued a release confirming the equity sale.
Banks with commercial real estate exposure have struggled after the Federal Reserve hiked interest rates through 2023, leaving them with unrealized losses on their balance sheet. New York Community Bank was forced to raise capital earlier this year after its stock sank amid concerns over its portfolio of commercial loans.
Most of the U.S. banks under pressure are community banks with under $10 billion in assets, like Flushing, which had about $9.3 billion in assets as of September.
Now, with a rebound in bank stock prices this year and the start of a Fed easing cycle in September, investors expect more banks to raise capital in the coming months. Behind the scenes, regulators have been prodding banks with confidential orders to improve capital levels.
“The rate environment is still a challenge, but we’re controlling what we can control and setting the foundation for a better future,” Buran told analysts in October.
Shares of Flushing Financial have risen about 5% this year through Thursday, trailing the 18% rise in the KBW Regional Banking Index.
Check out the companies making headlines in midday trading: Adobe — The software company tumbled more than 12% after it announced lighter-than-expected revenue estimates for the fiscal first quarter. Adobe guided for revenue between $5.63 billion and $5.68 billion in the fiscal first quarter, missing the consensus estimate of $5.73 billion, according to LSEG. Warner Bros. Discovery — Shares surged 15% after the legacy media company announced plans to restructure and split its business into linear and streaming segments. Constellation Energy — The energy company advanced 3% following an upgrade to buy from Bank of America, with the firm citing rising demand and tightening supply as catalysts for shares moving forward. Celsius Holdings — The energy drink maker surged 5% after JPMorgan initiated coverage at an overweight rating. JPMorgan said lighter inventory and a reacceleration of growth can help the stock rebound. Hershey — Shares rose 2% even after Wells Fargo downgraded the candy company to underweight from equal weight, saying Hershey is at the “precipice of historic EPS pressure in 2025 and (now) into 2026 … and Street EPS needs to come down substantially.” Beverage stocks — Shares of Coca-Cola , PepsiCo and Keurig Dr Pepper all advanced more than 1% after Deutsche Bank upgraded the beverage companies to buy from neutral. Analyst Steve Powers said he expects accelerating trends in restaurant traffic and stronger impulse purchases next year, which he believes should be a boon for the sector. Oxford Industries — Shares pulled back more than 7% after the apparel and footwear company’s fourth-quarter earnings guidance fell short of estimates. Oxford forecast earnings per share, excluding items, in the current quarter of $1.18 to $1.38 per share. Analysts polled by FactSet were looking for $1.55 in earnings per share. Riot Platforms — Shares jumped nearly 10% after The Wall Street Journal reported activist investor Starboard Value has taken a “significant position” in the bitcoin miner and is pushing for the company to convert some of its bitcoin mining facilities into space for big data-center users. Pure-play miners such as Riot this year have lagged other miners that pivoted to artificial intelligence. While some caught up in the postelection crypto rally, Riot is still down 16% for 2024. Uber Technologies — The ride-share stock rose about 2% on Thursday, clawing back some of its recent losses. Uber Chief Financial Officer Prashanth Mahendra-Rajah said at a Barclays conference late Wednesday that the company feels “very comfortable” with the near-term growth trajectory of its mobility business, according to FactSet. Uber is still down 13% month to date, in part due to concerns about its business as autonomous driving advances. ServiceTitan — Shares of the cloud software company surged more than 40% as ServiceTitan made its debut on the Nasdaq. The initial public offering was priced at $71 per share Wednesday evening, topping the company’s expected range. The stock is trading under the ticker “TTAN.” — CNBC’s Alex Harring, Hakyung Kim, Sarah Min, Jesse Pound and Tanaya Macheel contributed reporting.