Hot Stocks: NOW plunges on CEO comments; GOEV soars on WMT deal; CDLX downgrade

Stocks lost ground on Tuesday, weighed down by concerns about upcoming inflation data and the beginning of the corporate earnings season. Continuing weakness seen the day before, the Nasdaq led the retreat with a 1% decline.

ServiceNow (NYSE:NOW) contributed to the pessimistic market sentiment. Shares posted a double-digit percentage decline after the firm’s CEO warned of the effects of the difficult macro environment.

The list of notable decliners also included Cardlytics (CDLX). An analyst’s downgrade took the stock to a new 52-week low.

Looking at some of the day’s standout gainers, Canoo (GOEV) jumped more than 50% after announcing a significant order from Walmart (WMT). Meanwhile, Molson Coors (TAP) added to recent gains to extend its 52-week high.

Standout Gainer

Canoo (GOEV) received a major lift from a new deal with Walmart (WMT). The order sent shares skyrocketing 53% on the day.

GOEV revealed that Walmart has agreed to purchase 4,500 all-electric delivery vehicles. The tie-up includes an option for up to 10,000 units.

The company said it plans to start producing the vehicles in late 2022, with them expected to hit the road in 2023.

Boosted by the WMT deal, GOEV jumped $1.26 to close at $3.63. The advance added to a recent upswing, which has taken shares off a 52-week low of $1.75 reached about two weeks ago.

Even with the advance, shares remain 55% lower for 2022. The stock is coming off a 52-week high of $13.35 set in late November.

Standout Loser

A dreary assessment of the economy from the firm’s CEO churned up a wave of selling in ServiceNow (NOW), which plunged almost 13% during Tuesday’s trading.

Speaking to CNBC late Monday, ServiceNow CEO Bill McDermott said that customers were reconsidering spending priorities amid mounting macro headwinds. He specifically noted rising interest rates, the strong dollar, high energy costs and the ongoing conflict between Ukraine and Russia.

NOW finished Tuesday’s trading at $427.94, a decline of $62.77 on the session. The slide took the stock to the low end of a recent trading range, although it remains above a 52-week low of $406.47.

Shares have been retreating since hitting a 52-week high of $707.60 reached last year. Shares have now fallen 40% from that level.

Notable New High

An upbeat analyst assessment spurred gains in Molson Coors (TAP), allowing the brewer to rise another 2% and extend its 52-week high.

Cowen analyst Vivien Azer pointed out that TAP boasts a higher percentage of sales in the U.S., which gives it an advantage over many of its competitors in the current economic situation.

“We’re seeing success in the premium lights segment for Coors Light and Miller Lite (which have been a challenge to grow simultaneously). Coupled with growth in the hard seltzer (despite category declines), we think the company is reasonably well positioned to hit its guidance for mid-single-digit revenue growth this year, driven by the U.S.,” the analyst noted.

Bolstered by the commentary, TAP rallied to an intraday 52-week high of $58.42. Shares moderated a bit by the close, ending trading at $57.40. This represented an advance of $1.34 on the day.

Looking longer-term, TAP has climbed 13% in the past month and has increased more than 21% so far in 2022.

Notable New Low

Cardlytics (CDLX) fell to a new 52-week low, as a cautious analyst comment spurred the stock to extend its recent weakness. Shares fell almost 6% on the day.

The slide came as Craig-Hallum cut its rating on the advertising company to Hold from Buy, citing a “challenging” environment for consumer spending. The firm also slashed its price target, reducing it to $20 from $50.

CDLX dropped 91 cents to close at $15.63. During the session, the stock reached its intraday 52-week low of $14.47.

Tuesday’s retreat added to a longer-term slide, with the stock losing more than 77% of its value in 2022. Shares have fallen 87% over the last 12 months, with the stock retreating from a 52-week high of $134.91 set last July.

For more on the day’s biggest winners and losers, head over to Seeking Alpha’s On The Move section.