Lucid's stock surged by 14% following an upgrade from Morgan Stanley, which raised its rating from underweight to equal weight. The investment bank cited an emerging bull case tied to artificial intelligence as a significant factor in their decision. Meanwhile, UBS highlighted Lucid's quicker-than-expected improvements in operating and free cash flow margins compared to its industry peers. Despite these positive developments, Jefferies expressed concerns over Lucid's valuation. In the same vein, Lucid's shares have experienced a 3.9% decline in month-to-date losses.
Lucid recently reported a notable increase in net income for the fourth quarter, generating $26 million. However, the company's stock performance is influenced by Tesla's market activity. Tesla's shares have also seen a 3.9% drop in month-to-date losses. The electric vehicle giant faces increased competition from Zeekr, its China-based rival, which has announced the rollout of an advanced driver assistance system at no additional cost. Additionally, RBC Capital Markets has lowered expectations for Tesla's self-driving capabilities pricing. The firm's fiscal second-quarter earnings per share are projected to be between 65 cents and 68 cents.
In other financial news, Hims & Hers Health experienced an 8% decline in its stock price after the Food and Drug Administration raised concerns about unapproved GLP-1 drugs used for weight loss. The company began prescribing compounded semaglutide last year, which has come under scrutiny.
Meanwhile, Google made headlines with its acquisition of cloud security startup Wiz for $32 billion in an all-cash transaction. Despite this major acquisition, Google's shares fell 2.7% in midday trading.