The stock market continued to try to build a base on Thursday after a punishing first nine months of 2022. Two days of big gains on Monday and Tuesday set the stage for a nice recovery, and Wednesday's recovery from steep losses showed the market's resilience. Futures markets for the Dow Jones Industrial Average (^DJI 0.67%), S&P 500 (^GSPC 0.87%), and Nasdaq Composite (^IXIC 1.11%) showed the likelihood of a flat start when regular trading begins this morning.
A couple of stocks made noteworthy moves higher in the premarket session. Below, you'll learn more about why Pinterest (PINS 1.02%) and Provention Bio (PRVB) are on investors' radar Thursday morning and whether their latest moves could be the beginning of a broader move higher.
Pinterest gets a thumbs-up
Shares of Pinterest climbed more than 5% in premarket trading on Thursday morning. The image-based social media company got a vote of confidence from stock analysts late Wednesday that made shareholders more optimistic about its future.
Analysts at Goldman Sachs upgraded their view on Pinterest, raising their rating on the stock from neutral to buy. The Wall Street giant also boosted its price target on the stock by $7, setting its new mark at $31 per share.
Goldman admitted that the entire social media space faces considerable uncertainty right now, especially as an economic slowdown or potential recession could crimp spending on advertising going forward. Yet Pinterest stands in a strong position to boost its monetization efforts in analysts' view, and if it can grab up more market share as advertisers look for the most effective ways to get their messages to receptive customers, then Pinterest could be a good long-term play in its view.
Pinterest has historically had challenges in making the most of its loyal user base, with the challenge of balancing its user-friendly feel with the desire to boost advertising revenue. That's a tough needle to thread, but Pinterest is working harder than ever to do what it has to do to achieve long-term success.
Provention Bio finds a partner
Shares of Provention Bio made an even bigger move higher, rising 16% in premarket trading. The tiny biopharmaceutical company announced a partnership with a giant of the industry, and investors are excited about the ramifications for Provention's future.
Provention said that it will now work with Sanofi (SNY 1.84%) to co-promote Provention's teplizumab investigational drug candidate for forestalling the onset of type 1 diabetes in at-risk patients. Under the agreement, Sanofi will provide its expertise and commercial resources to support teplizumab's potential launch if the U.S. Food and Drug Administration approves the treatment.
Sanofi is also making a more direct contribution to further Provention's success. It paid $20 million for the right to negotiate first with Provention to commercialize teplizumab for diabetes patients, essentially locking out other partners until at least July 2023. Moreover, if the treatment receives FDA approval, then Sanofi will invest $35 million in Provention's stock, with the price to be determined based on a premium above the stock price immediately prior to the investment taking place.
Provention hopes to hear from the FDA by mid November on whether the government agency will approve its lead pipeline candidate. With the company having previously faced the challenge of trying to figure out how best to market and finance the drug's launch, Provention's deal with Sanofi resolves several key issues that could pave the way to a successful rollout if the FDA cooperates.
