These are some of the stocks making the biggest moves midday.

• Nvidia — The artificial intelligence giant fell 2% during midday trading, building on Tuesday’s loss ahead of its quarterly earnings report after the bell. 
• Teladoc — Shares dropped 24% Wednesday, the day after the online health-care company released worse-than-expected revenue and guidance. 
• Toll Brothers — The homebuilder’s shares jumped more than 5% on the back of its better-than-expected earnings report. 

See the full list here.

— Alex Harring

Shares of Teladoc are on pace to notch their second worst day in the stock’s history following weak revenue.

The virtual health-care company stock plummeted nearly 25% Wednesday. The only time the stock has previously seen a worse drop is April 22, 2022, when shares tumbled more than 40% in the session.

Wednesday’s drop comes after Teladoc posted lackluster revenue for the fourth quarter and weak current-quarter guidance on the measure. Teladoc recorded $661 million in the fourth quarter, less than the $671 million forecast of analysts polled by LSEG, formerly known as Refinitiv. For the current quarter, the company said to expect between $630 million and $645 million, while analysts anticipated $673 million.

On the other hand, Teladoc saw a smaller loss per share than analysts expected in the fourth quarter. But the company offered guidance for its loss per share that was larger than analysts were predicting.

Teladoc went public in 2015. Shares have dived more than 28% so far in 2024.

— Alex Harring

International Flavors & Fragrances declined 8.4% midday Wednesday. This came a day after the company posted a mixed earnings report and slashed its quarterly dividend. 

The company’s fourth-quarter earnings excluding items came in at 72 cents per share, missing consensus estimates of 86 cents per share, according to StreetAccount. Meanwhile, its revenue of $2.7 billion came in line with expectations. 

Management also announced that it would reduce quarterly dividends by 50.6% to 40 cents from 81 cents.

Shares are now down 7.6% in 2024.

Shares of Palo Alto Networks cratered more than 26% and headed for their worst day on record after the company cut its full-year revenue and billings outlook after the bell Tuesday.

The new outlook anticipates billings growth to range between 10% and 11% for the year, while prior guidance called for between 16% and 17% growth. The company also expects revenue growth to range between 15% and 16%. That’s down from previous guidance that anticipated 18% to 19% growth.

CEO Nikesh Arora said during a call with analysts that the lowered forecast reflects a “shift” in strategy, “wanting to accelerate growth, our platform migration and consolidation and activating AI leadership.”

The cybersecurity company topped quarterly estimates on the top and bottom lines. With Wednesday’s moves, the company is on pace for its worst month since February 2020 and its worst week ever.

Shares of Garmin jumped 11.5% and hit a 52-week high on Wednesday after the company reported fourth-quarter earnings and revenue that beat analysts’ estimates.

Garmin, which makes fitness and navigation devices, also guided for full-year revenue of $5.75 billion, topping the $5.56 billion expected from analysts polled by FactSet.

In addition, the Swiss company is returning money to shareholders. Garmin is increasing its quarterly dividend to 75 per share, up from 73 cents, beginning June 28 for shareholders on record as of June 17. Garmin also announced it was repurchasing up to $300 million of the company’s shares through Dec. 26, 2026.

The stock is up nearly 7% year to date.

— Michelle Fox

Quant funds, levered upside, momentum and call skew are nearing levels that previously preceded some of the largest S&P 500 fragility events in nearly a century, according to Bank of America. But an asset bubble may not be in the cards.

Those markers are all more than two-thirds of the way to where they stood when two of the four largest fragility events have taken place since 1928, analyst Vittoria Volta told clients. The two events were the February 2018 “Vix-plosion” and March 2020 Covid-19 pandemic shock.

In the current market, Volta said fragility risks are high due to the pressure to chase momentum and fickle liquidity. But slides in volatility within the “Magnificent Seven” also show the market is “far” from an asset bubble, as volatility typically rises with prices in that situation.

With depressed volatility and correlation, Volta said she continues to like owning options directionally, which aren’t fully pricing the future drift of markets in either direction.

— Alex Harring

Institutional clients were net buyers of U.S. equities last week, while hedge funds and retail clients were net sellers, according to Bank of America.

Additionally, strategist Jill Carey Hall outlined that small-cap exchange-traded funds saw record inflows.

“Small cap ETF momentum continued, with inflows in 22 of the 23 past weeks, and largest weekly inflow in our data history since ’17 (mainly Retail-driven buying). Despite more positive sentiment, positioning in small caps remains light and valuations remain inexpensive vs. history,” she wrote.

Sector-wise, communications services led last week’s inflows, while health-care and tech stocks saw the biggest outflows.

“The last three weeks have been the three biggest weeks of Comm. Svcs. net buying in the history of the sector since ’18. The sector also has the longest recent buying streak of any sector (16 weeks),” Hall added.

— Lisa Kailai Han

Nvidia’s earnings report on Wednesday evening is likely to be a key factor in whether the momentum trend that has pushed stocks to new highs can continue, according to Wolfe Research.

Strategist Chris Senyek said in a note to clients that the momentum trade is showing signs of weakening during the recent hiccup for stocks but that it was still too soon to call for a bigger reversal. Momentum is a trading factor that can serve as a bet that hot stocks will keep leading the market higher.

“While there could be some more near-term downside, we believe that the key event to derail the Momentum trade will be indications that AI demand and Tech fundamentals broadly are starting to soften. Along this vein, NVDA’s report tonight has the potential to be a major market moving event — both to the upside and the downside,” Senyek said.

— Jesse Pound, Michael Bloom

These are the stocks moving the most in premarket trading.

Read the full list of stocks moving here.

— Lisa Kailai Han

Tech earnings should continue to support an already impressive earnings season, according to Barclays.

“U.S. tech exceptionalism has remained a massive theme, and should be underlined by Nvidia earnings this week…margin expansion for the second straight quarter is all about U.S. mega-cap tech firms,” analyst Ajay Rajadhyaksha wrote in a Tuesday note. “In sum, we believe that much of the equity rally is justified based on better earnings, and so is less vulnerable to a pullback.”

Earnings per share growth year-over-year in the U.S. was 5%, higher than in Europe, Rajadhyaksha pointed out. Nearly four-fifths of the broader market have beaten on EPS expectations, while 68% have beaten on sales, he said.

Nvidia, which is expected to post earnings after the bell on Wednesday, has been the crown jewel of the market since last year amid the excitement around advancements in AI, which also boosted shares of ‘Magnificent 7’ tech peers such as Meta and Amazon. Investors are eyeing the chipmaker’s results to gauge how far the stock can rally.

— Pia Singh

Teladoc shares dropped more than 20% before the bell on Wednesday, the morning after the online health-care company posted worse-than-expected revenue and guidance.

The company reported $661 million in revenue, below the $671 million forecast of analysts polled by LSEG. However, Teladoc saw a loss of 17 cents per share, smaller than the 21-cent figure anticipated by analysts surveyed.

For the current quarter, Teladoc guided revenue between $630 million to $645 million. That’s lower than the estimate of $673 million from analysts, per LSEG.

Teladoc shares have dropped almost 5% so far in 2024, underperforming the broader market.

— Alex Harring

SolarEdge shares dropped 20% in the premarket after the company posted mixed quarterly results. The solar inverter maker posted fourth-quarter revenue of $316 million, less than an LSEG estimate of $354 million. It also reported a smaller-than-expected loss for the quarter.

However, first-quarter revenue guidance came in well below analyst expectations.

— Fred Imbert

Check out the companies making headlines after the bell.

Palo Alto Networks — Shares declined nearly 19% after the cybersecurity company’s full-year guidance missed expectations. Palo Alto Networks said it predicts full-year revenue growth of 15% to 16%, down from earlier guidance of 18% to 19% growth. The company also reduced its full-year billings forecast. Meanwhile, adjusted earnings and revenue in the fiscal second quarter topped analysts’ estimates.

Diamondback Energy — Shares gained 1.6% after the energy company beat on both top and bottom lines in the fourth quarter. Diamondback posted adjusted earnings of $4.74 per share on $2.23 billion in revenue. Analysts polled by LSEG, formerly known as Refinitiv, had forecast $4.66 in earnings per share on revenue of $2.17 billion. 

Caesars Entertainment — The hotel and resorts stock lost more than 1% after posting a revenue miss in the prior quarter. Caesars reported $2.83 billion in revenue while analysts had estimated $2.85 billion, according to LSEG. 

— Hakyung Kim