Apps earnings

Hot Stocks: CRM Jumps on Earnings; COIN, APPS dive; Lithium stocks fall; TNK, STNG rising

Wall Street succumbed to lingering worries about the economy on Wednesday, with major averages ending solidly in negative territory. Stocks fell early in the day but pared their losses in the afternoon.

Pessimistic comments from JPMorgan’s CEO contributed to the decline, with financial stocks bearing the brunt of the skepticism. It also put pressure on cryptocurrencies, causing Coinbase to drop in double digit percentage (PIECE OF MONEY).

Lithium-related stocks also participated in the retreat. A cautious sector forecast from Goldman Sachs triggered shorts in Livent (LTHM), Piedmont Lithium (PLL), Albemarle (ALB) and Lithium Americas (LAC).

Digital Turbine (APPS) was another remarkable decliner for the session, losing nearly a quarter of its value on a disappointing earnings report.

Looking at some of the most notable winners of the day, Salesforce (New York Stock Exchange: CRM) staged a rally following its upbeat quarterly update. Meanwhile, Scorpio Tankers (STNG) and Teekay Tankers (TNK) continued their recent march higher, setting new 52-week highs.

Focus on the sector

A negative comment from an analyst sparked selling among lithium-related stocks as Goldman Sachs predicted that prices for the commodity would fall sharply in the coming years. Lithium received a massive boost amid aggressive projections for battery demand, but Goldman believes the bull market has now peaked.

Livent (LTHM) was among the group’s biggest decliners, returning some of the gains recorded in May. The stock rose from just over $21 in late April to a 52-week high of $34.61 in late May. On Wednesday, shares fell 14% to $27.25.

Elsewhere in the sector, Piedmont Lithium (PLL) fell 13%. Albemarle (ALB) and Lithium Americas (LAC) were also down, each dropping around 8%.

Outstanding Winner

The earnings news release caused Salesforce (CRM) shares to rally. With solid results and a well-received forecast, the stock jumped almost 10%.

The customer management software provider reported revenue of $7.4 billion for the quarter, a 24% increase over last year. The company also beat projections on its results, reassuring investors, who feared that the precarious economic situation could reduce the company’s sales.

CRM ended Wednesday’s session at $176.07, a $15.83 lead on the day. With the rally, the stock continued to slide from a 52-week low of $154.55 hit in mid-May.

Even with the earnings-inspired recovery, CRM remains 33% lower over the past six months.

Outstanding Loser

The cryptocurrency complex suffered a sell-off amid lingering concerns about the economy. Battered by the slide, crypto exchange Coinbase (COIN) recorded a substantial pullback, falling 12% on the session.

Crypto was hurt by a high-profile macro call from JPMorgan CEO Jamie Dimon, who told a conference that an economic “hurricane” was brewing. Hurt by the comments, Bitcoin (BTC-USD) fell almost 6%, while Ethereum (ETH-USD) fell more than 7%.

In this environment, COIN retreated $9.47 to end trading at $68.63. Looking further ahead, COIN hit a 52-week low of $40.83 in mid-May. The stock has lost around 73% so far in 2022.

Notable new peak

With energy stocks among the few sources of strength on Tuesday, investors continued to look to stocks of companies involved in the petroleum product supply chain. This included Scorpio Tankers (STNG) and Teekay Tankers (TNK), both of which reached new highs in 52 weeks.

TNK advanced $1.01 to close at $21.66. During the session, the stock also hit a 52-week intraday high of $22. This continued a long-term recovery for TNK, which has soared 85% so far in 2022.

STNG ended the session at $34.82, a $1.77 lead from the previous day’s close. Shares also hit a 52-week intraday high of $35.65. The stock has jumped around 150% since the end of 2021.

New notable low

Accounting changes clouded an earnings report from Digital Turbine (APPS), causing the company’s share price to fall 23%. With the retreat, stocks hit a new 52-week low.

The provider of an online monetization platform posted fourth-quarter non-GAAP EPS in line with analysts’ expectations. However, the company also disclosed an accounting change that complicated comparisons with previous financial periods.

Additionally, the company said it has identified “a material weakness in internal controls over financial reporting” related to the reporting of certain revenue calculations. As a result, APPS delayed filing its annual report.

Weighed down by earnings news, APPS fell to a 52-week intraday low of $19.21. The shares pared their losses from there but still ended at $19.68, down $5.75 on the day.

Wednesday’s decline added to a longer-term slide. Shares have fallen around 68% so far in 2022.

For more on the best and worst performing stocks of the day, head to the On The Move section of Seeking Alpha.