In a significant move in the corporate world, QXO shares rose by 4.8% following the announcement of its acquisition of Beacon Roofing Supply. The deal, valued at $11 billion, sparked interest across the market. In response, Beacon Roofing Supply experienced a 2% increase in its stock, indicating investor confidence in the merger.
Meanwhile, Five Below reported impressive earnings, surpassing analyst expectations set by LSEG. The company revealed earnings of $3.48 per share on revenue of $1.39 billion for the fourth quarter. This exceeded the projected earnings of $3.37 per share and revenue of $1.38 billion. Additionally, Five Below's earnings per share, excluding certain items, were $2.80, slightly above the LSEG forecast of $2.79. Analysts at Citi hinted at a potential return to volume growth for Five Below by 2025.
Coty also witnessed a notable market shift after being upgraded from neutral to buy by Citi. Following this upgrade, Coty's shares increased by 3.4%. Analyst Filippo Falomi commented on Coty's valuation, noting that the anticipated sale of Coty's stake in Wella by year-end was not fully reflected in its current valuation metrics.
Conversely, PDD Holdings faced a setback as its shares dropped 6% post the announcement of lower-than-expected fourth-quarter earnings. The company reported adjusted earnings of 18.53 yuan per share on revenue of 110.6 billion yuan, missing analyst projections.
Stellantis experienced a decline as well, slipping 4% after Piper Sandler downgraded it to neutral from overweight. Analyst Alexander Potter expressed concerns over increasing uncertainties surrounding Stellantis, which contributed to the downgrade.