Alphabet Stock Surges After Introducing AI Features

A reverse stock split is weighing on HEPA

Digital Content Manager
May 11, 2023 at 3:12 PM
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Alphabet Inc (NASDAQ:GOOGL)Beyond Meat Inc (NASDAQ:BYND) and Hepion Pharmaceuticals, Inc. (NASDAQ:HEPA) are making outsized moves today. Let's dig deeper into the drivers behind that price action, as Wall Street grapples with earnings results and the latest inflation data.

GOOGL Enjoying AI Tailwinds

Last seen up 4.4% at $116.64, Alphabet stock earlier hit a nine-month high after introducing artificial intelligence (AI) features across its products ranging from file organization to photo editing. The equity now sports a 32.6% year-over-year lead.

Today's update is sitting well with options traders, with 625,000 calls and 386,000 puts traded so far, which is four times the volume that's typically seen at this point. The most popular contracts are the weekly 5/12 118- and 117-strike calls, where new positions are being opened.

Cooling Demand Hurts BYND 

Beyond Meat stock is down 18.2% at $10.21 at last check -- despite beating first-quarter estimates -- after revenue fell roughly 16%, as demand for its plant-based burgers cooled. At least three analysts cut their price targets, including UBS and BMO to $14, earlier driving BYND to a record low of $10.11. Year-over-year, the shares are off 60.7%.

Drilling down to today's options activity, 61,000 puts and 34,000 calls have crossed the tape -- six times the average intraday amount. The weekly 5/12 11-strike put is currently the most active, with positions opening there.

HEPA Sinks on Reverse Stock Split

HEPA is on the struggle bus as well, last seen down 18% at $8.75, after the company announced a reverse stock split at a ratio of 1-for-20. Shares are today trading at their lowest level since January, after yesterday losing support from their 200-day moving average. The stock also breached a floor at the $13 level, which contained several pullbacks this year, though it still boasts a 48.3% lead in 2023.


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