In a wave of dramatic shifts, several major companies experienced significant premarket stock movements. KB Home shares surged over 9% following the release of stronger-than-expected fourth-quarter results. The company reported earnings of $2.52 per share on $2 billion in revenue, surpassing analyst predictions of $2.45 per share on $1.99 billion in revenue. The rise was further bolstered by a 17% year-over-year increase in home deliveries.
Meanwhile, H & E Equipment Services saw its shares soar by more than 100% after United Rentals announced plans to acquire the rental equipment company. United Rentals will pay $92 per share in cash, valuing H & E at approximately $4.8 billion. This acquisition marks a significant expansion for United Rentals in the rental equipment sector.
Celanese also experienced a notable increase, with shares popping 2.7% after receiving a rare double upgrade from Bank of America, which shifted its rating from underperform to buy. The upgrade signals strong confidence in Celanese's future performance within the market.
In other significant developments, Applied Digital shares rallied by 19.3% after Macquarie revealed plans to invest up to $5 billion in the company's artificial intelligence data centers. As part of this investment, Macquarie will acquire a 15% stake in Applied Digital's high-performance computing business. Adding to the momentum, Mizuho initiated coverage of Applied Digital with an outperform rating, highlighting its undervalued position in the grocery delivery market.
Conversely, Signet Jewelers faced a downturn, with shares plunging by 16% after the company lowered its fourth-quarter guidance. The revised outlook has raised concerns among investors about the company's short-term financial prospects.
Elsewhere, United shares recorded a 2% gain before the bell, and Hesai shares jumped 6.4% after Goldman Sachs upgraded its rating from neutral to buy.
Teladoc Health also enjoyed a premarket boost, with shares increasing by 4% following the announcement of a new partnership with Amazon. This collaboration is expected to enhance Teladoc's reach and effectiveness in the digital health space.
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