Stocks to Watch: Charles Schwab, Snowflake, Wolfspeed
By Connor Hart
Toronto-Dominion Bank plans to cut its stake in Charles Schwab to offset part of a provision for fines it is likely to face from U.S. regulators. TD Bank said it had set aside $2.6 billion for fines for weaknesses in its anti-money-laundering practices. It plans the sale of 40.5 million shares of common stock in Charles Schwab, reducing its ownership interest in the wealth-management company to about 10% from more than 12%. In after-hours trading, shares of Charles Schwab fall 4.4%, to $61.77, while shares of TD Bank are roughly flat at $59.90.
Snowflake widened its quarterly net loss, and guidance in line with market forecasts failed to buoy the stock. The provider of cloud-data warehousing software Wednesday posted a net loss of $316.9 million, or 95 cents a share, compared with a loss of $226.9 million, or 69 cents a share, in last year's quarter. The company's second-half guidance "insinuates a significant deceleration vs. [first-half] product growth," Evercore ISI analyst Kirk Materne said in a research note. Shares fall almost 8%, to $124.41, in after-hours trading.
Wolfspeed's net loss widened and the company posted lower revenue in its fiscal fourth quarter, but it projected a bottom-line boost driven by investments in electric vehicles and artificial intelligence. CEO Gregg Lowe said on a call with analysts that the company's EV revenue is projected to triple in the current quarter, while AI companies' need for silicon carbide will help business in the coming years. Shares rise 5.5%, to $14.25, in after-hours trading.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
August 21, 2024 20:10 ET (00:10 GMT)
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