Yahoo Finance’s Emily McCormick reports on the day's trending tickers.

Video Transcript

- Let's check in with Emily McCormick now for a look at some stocks she has her eye on. And Emily, I'm going to start with Chewy trading lower following strong Q1 results and a bullish outlook. So why aren't investors buying?

EMILY MCCORMICK: Well, that's right, Alexis. We are seeing shares of QE moving to the downside today. That stock is actually off just over 5 and 1/2%, even after topping first quarter sales estimates, posted surprise profit, and boosting its sales outlook.

Now, diving into some of these results, first quarter net sales of $2.14 billion did top estimates. And Chewy now sees full year net sales of as much as $9 billion, up from a previous forecast for as much as 8.95 billion.

Ultimately, these results were not strong enough to impress Wall Street, which is still looking ahead to a possible growth slowdown for the company amid reopenings taking place now and later this year. And if we look at the growth rate that we saw for the first quarter for Chewy, some of those dynamics were already playing out.

We did see first quarter net sales, as I mentioned, topping estimates, up 32% year on year. But this was slower than the 51% growth rate that the company posted for the prior quarter. Then another point of concern for Chewy is around supply chain issues and labor challenges. That has been hitting companies across a number of industries.

And Chewy CEO Sumit saying-- did say that the company was investing in higher wages and short-term incentives to recruit talent. So all that factoring into a bit of that downside move that we're seeing today. And Chewy shares are off about 16% so far for the year to date. Kristin and Alexis.

KRISTIN MYERS: Emily, let's talk about another stock that is in the red right now, taking a leg lower despite also reporting strong first quarter earnings. And that is Dave and Busters. Tell us what's happening there.

EMILY MCCORMICK: Well, you're right, Kristin. Again. A little bit of a paradoxical move if we look at Dave and Buster's, similar to what we've been seeing with Chewy, although we do have to put today's move lower in perspective considering that the stock is still up nearly 50% for the year to date since Dave and Buster's has been lumped into that reopening trade of stocks that would benefit from a post-pandemic economic reopening.

We take a look at these first quarter results that we got from the company. Dave and Buster's posting first quarter earnings per share of $0.40 versus a loss of $0.21 expected. And revenue of $265 million was up 66% year on year and ahead of estimates.

Now, all that said, first quarter comparable sales were still down 35% compared to 2019. So still not quite back at those pre-pandemic levels on a two-year stack for this entertainment company. And again, we are seeing those shares off about nearly 3% intraday today, Kristin and Alexis.

- All right, we also want to talk about a pharma company, Novan. Its stock is surging today. I guess it got some good news about the duration of a treatment for a contagious skin disease. What can you tell us about that?

EMILY MCCORMICK: That's right. So we are seeing Novan really moving strongly to the upside. The company reporting positive results from a phase three clinical study of its new topical antiviral gel for certain skin infections. Now, specifically, this will be a therapy for molluscum which is a condition that currently has no US FDA-approved therapies.

And Novan did say in a statement today that it believes its treatment could be approved and would satisfy an important patient hearing aid for this condition according to its press release this morning. So with this move that we're seeing today, shares are now up 81% for the year to day and more than 260% over the past 52 weeks. So quite a bit of optimism here from Wall Street following these clinical trial data.

KRISTIN MYERS: All right, Emily, let's end with something that we have seen quite a bit lately, which is some of these meme stocks-- a lot of the social media trades that are being made. I see that there's some moves here on Senseonic Holdings because of some Reddit chatter that had been going on. What's the details there?

EMILY MCCORMICK: That's right, Kristin. So, of course, we can't go a segment without talking about the Reddit trade-- the social media-fueled frenzy we've been seeing across so many of these stocks. And Senseonic Holdings has been a beneficiary of that. According to real time data from Yolo stocks, Senseonic was the 10th most discussed stock on the Wall Street that sell Reddit today over the past 24 hours.

Leapfrog to that 10th slot from the 17th slot a date earlier. It is also a trending ticker on the Yahoo Finance web page and not a huge amount of news on the company today. But earlier this month, it did announce a study of its 180-day continuous glucose monitoring system demonstrated strong accuracy of the device.

So again, a little bit of positive momentum when it comes to the fundamental side of this business as well. Shares of the company have also been quite volatile over the past couple of weeks. They are up 350% so far for the year to date and moving higher by just about 8% now in intraday trading. Guys.

- All right, thanks so much, Emily-- appreciate that.