Pre-Market Trading: CarMax, Salesforce, Coinbase and More Showing Significant Movement

CarMax's shares fell 4.8% after JPMorgan downgraded the company to underweight. JPMorgan said that investors are not fully pricing in the risks surrounding CarMax, and that hopes for a recovery look premature. CarMax fell 53% in 2022 but has risen 18% since its disappointing quarterly results in December.

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Salesforce shares fell by 3% after Bernstein downgraded the company from "market perform" to "underperform." According to Bernstein, Salesforce is in a "growth purgatory" and could have difficulty climbing out. This comes a week after the company announced its plans to reduce staff. Bernstein believes that shares could fall by another 20%.

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Coinbase shares fell by 3% after the company was downgraded by Bank of America. The bank said that consensus estimates on Coinbase are "way too high" given the current outlook for cryptocurrencies. This came a day after Coinbase announced a second round of layoffs, which will affect 950 jobs, or about 20% of the company's workforce. Coinbase shares have dropped by 86% since 2022, as macroeconomic conditions and scandal have weighed down the cryptocurrency market.

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Tesla's shares rose 2% after the EV maker registered with the state of Texas to expand its electric vehicle factory in Austin this year. Separately, Goldman Sachs also named Tesla a top pick for 2023.

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Shares of Levi Strauss & Co. slipped 2.2% after Citi downgraded the stock to neutral from buy. The firm cited weaker denim trends that could pressure the company in the near to medium term.
Guggenheim upgraded Warner Bros Discovery to buy from neutral Wednesday, citing an attractive risk/reward and narrative for the first half of the year. Warner Bros. Discovery rose 1.75% in the premarket, following an 8% gain Tuesday.

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Toll Brothers' shares rose by nearly 2% after Bank of America upgraded the company from neutral to buy. The bank noted that while Toll Brothers will face some headwinds from incentives and mix shifts in the coming year, these will be offset by tailwinds like lower input costs, especially for lumber.

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Wells Fargo is reducing its presence in the mortgage market as it deals with regulatory pressure and the effects of higher interest rates on housing. The company used to be the biggest mortgage lender in the country, but it will now only offer home loans to existing customers and borrowers from minority communities. Shares rose slightly in premarket trading.

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Susquehanna downgraded Southwest Airlines to neutral from positive, citing the operational meltdown during the recent winter storm. Southwest lost 1.55% in the premarket. Walt Disney has revised its pricing policies at its domestic theme parks, making a number of modifications to its reservation and ticketing system, as well as its annual pass membership perks, to make it easier for loyal customers to attend. Shares were higher by less than 1% premarket.