QuantumScape (NYSE: QS) shares hit a new 52-week low of $4.80 after investors reacted sharply to reduced milestone payments under its partnership with Volkswagen’s battery unit, PowerCo.
The milestone payments tied to the Volkswagen partnership fell from a previous maximum of $131 million down to $75.4 million, intensifying concerns about the company’s commercial progress.
Despite reporting a narrower-than-expected loss in its second-quarter results, QuantumScape maintained its full-year adjusted EBITDA loss forecast of $250 million to $275 million, signaling continued profitability challenges.
TD Cowen analyst Itay Nichaeli responded by cutting QuantumScape’s price target from $8 to $6 while maintaining a “Hold” rating, reflecting cautious sentiment among institutional investors.
Paramount Skydance (NASDAQ: PSKY) shares tumbled to a nearly 17-year low of $8.17 after the company announced it was pausing its planned $110 billion acquisition of Warner Bros. Discovery until June 1, 2027, or until a court resolves an antitrust challenge.
The legal challenge was brought by California Attorney General Rob Bonta and 12 other states, who argue the merger could harm competition across movies, cable television, and streaming services, potentially raising costs for consumers.
Paramount executives maintained their support for the deal, stating they believe a legal review will demonstrate the merger’s benefits for audiences and creators, though the court proceedings are expected to add costs and extend the timeline considerably.
Albertsons Companies (NYSE: ACI) stock dropped to a record low of $10.86 as weakening consumer spending patterns and aggressive industry discounting weighed heavily on the grocery retailer’s financial performance.
Albertsons posted first-quarter earnings of $0.42 per share, falling well short of the analyst consensus estimate of $0.54 per share, according to Fiscal AI data, triggering a wave of analyst downgrades on Friday.
Telsey Advisory Group downgraded Albertsons to “Market Perform” from “Outperform” and slashed its price target to $13 from $22, citing an ongoing business transformation that requires more time to produce meaningful results.
BMO Capital matched that downgrade, also moving to “Market Perform” from “Outperform” while cutting its price target to $12 from $23, stating that its expectations for improved EBITDA stability have not materialized as quickly as anticipated.
Across the three names, the year-to-date losses have been severe, with ACI and PSKY down 35% and 38% respectively, while QS has shed 53% of its value, reflecting a broader investor retreat from companies with limited near-term cash flow visibility.
