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UP AFTER EARNINGS: Boston Beer (SAM), up 14%... Principal Financial (PFG), up 12.6%... First Solar (FSLR), up 12.1%... Gigamon (GIMO), up 9.4%... Ultra Clean (UCTT), up 7.6%... Baidu (BIDU), up 6.6%... Cypress Semiconductor (CY), up 3.8%... Align Technology (ALGN), up 3.7%... Cerner (CERN), up 2.6%... Expedia (EXPE), up 2.4%... Intel (INTC), up 0.8%. ALSO HIGHER: Agile Therapeutics (AGRX), up 12.4% after it announced FDA acceptance of the NDA resubmission of Twirla. DOWN AFTER EARNINGS: Ellie Mae (ELLI), down 21.8%... Cabot Microelectronics (CCMP), down 18.5%... NuVasive (NUVA), down 13.9%... Wix.com (WIX), down 10.3%... MobleIron (MOBL), down 9.9%... Flowserve (FLS), down 8.9%... Echo Global (ECHO), down 7.8%... PDF Solutions (PDFS), down 7.3%... Flex (FLEX), down 6.7%... Leggett & Platt (LEG), down 6.4%... Bojangles (BOJA), down 6.4%... Western Digital (WDC), down 6.4%... Starbucks (SBUX), down 5.9%... Mattel (MAT), down 4%... Electronic Arts (EA), down 3.8%... Amazon (AMZN), down 2.2%.

With Snap's (SNAP) lockup expiration approaching on July 31, JPMorgan analyst Doug Anmuth told investors that he expects further downside into and after that initial date. Snapchat's parent is expected to release quarterly results on August 10. LOCKUP EXPIRATION: JPMorgan's Anmuth noted that the lockup agreements related to Snap's IPO expire on Saturday, July 29, with the first day of trading on Monday, July 31. Importantly, the lockup expires before Snap's second quarter earnings release on Thursday, August 10, and as a result, employees will not be able to sell any shares until their trading window opens on Monday, August 14, he added. The analyst said he believes that some shares are subject to 180-day market stand-off provisions that expire on August 28, and that Snap also has a one-year lockup agreement in place for about 50M shares that were sold in the IPO. Therefore, Anmuth estimated that approximately 1.2B shares will technically become available for sale by the end of August: 400M shares owned by early investors on July 31, 782M shares owned by directors, execs, affiliates, and employees on August 14, and 20M shares owned by early investors subject to 180-day market stand-off provisions on August 29. FURTHER DOWNSIDE: While the recent pressure on Snap shares has likely been attributable to both the fundamental outlook and the upcoming lockup expiration, JPMorgan's Anmuth believes there could still be further downside into and after that initial July 31 date, particularly as stepping into shares at that point would likely require taking on second quarter earnings risk. The analyst acknowledged that Snap product innovation continues with Snap Map and other new creative capabilities, and self-serve Snap Ads and on-demand geofilters on the advertising side, but the impact of these initiatives will not show up in the second quarter results, and he expects Snap to remain disciplined around the quality of ads on its platform. Additionally, Anmuth noted that Snap shares also may lack specific valuation support, and earnings, EBITDA, and free cash flow are likely to remain negative the next couple years. He reiterated a Neutral rating and $18 price target on the shares. PRICE ACTION: In afternoon trading, shares of Snap have gained almost 3% to $13.75, but are still trading below the $17 IPO price. "Before the Move" is The Fly's recurring series of exclusive stories that identify potentially market moving events, along with analyst predictions, ahead of the news.

Shares of AstraZeneca (AZN) are dropping sharply after the company said its MYSTIC trial failed to show its two-drug combination extended progression-free survival compared with standard-of-care chemotherapy for lung cancer patients. Leerink analyst Seamus Fernandez downgraded the stock to Market Perform following the news, while noting that this could have a negative read-through for Bristol-Myers (BMY), which is testing a similar combination. MYSTIC TRIAL: AstraZeneca has announced progression-free survival, or PFS, results for the Phase III MYSTIC trial, which is testing Imfinzi monotherapy or Imfinzi in combination with tremelimumab versus platinum-based standard-of-care chemotherapy in previously-untreated patients with metastatic first line non-small cell lung cancer. The combination did not meet the primary endpoint of improving PFS compared to standard-of-care in patients whose tumors express PD-L1 on 25% or more of their cancer cells. MOVING TO THE SIDELINES: Following the news, Leerink's Fernandez downgraded AstraZeneca to Market Perform from Outperform and lowered his price target on the shares to $31 from $36, citing the company's "continued reliance on externalization profits and deteriorating earnings quality." The analyst also pointed out that he is surprised that AstraZeneca did not have a major cost restructuring plan in place following the MYSTIC trial failure. Further, selling off 50% of the Lynparza opportunity raises near-term concerns about the sustainability of the company's cash flow, Fernandez contended. READ-THROUGH FOR BRISTOL-MYERS: Leerink's Fernandez argued in a separate note that the MYSTIC trial failure is an obvious negative read-through for Bristol-Myers' combo of Opdivo + Yervoy in the ongoing CheckMate-227 trial. He pointed out that while there are several key differences in trial design between MYSTIC and CM-227, they are unlikely to result in meaningfully different outcomes. Also commenting on AstraZeneca's news, Goldman analyst Jami Rubin said Bristol-Myers could test the $50 level. Confidence gets hit for Bristol's PD-L1+CTLA4 thesis in first line non-small cell lung cancer and for its own registration phase 3 trial, CM-227, with a potential interim readout not expected till later in the year, he added. The analyst told investors that he does not have any contribution from first line non-small cell lung cancer in his estimates, while noting that Bristol's assets and trial are very different from MYSTIC. POSITIVE FOR MERCK: On the other hand, Goldman's Rubin expects Merck (MRK) to trade up approximately $5 based on sentiment following AstraZeneca's MYSTIC failure as it partially de-risks longer-term estimates for Keytruda. Merck's drug has already been approved for the same population. The analyst raised his price target on Merck's shares to $74 from $70. Nonetheless, Rubin cautioned that long-term estimates could be at risk if other competitor trials are successful. The analyst reiterated a Neutral rating on Merck's stock. RESULTS: This morning, AstraZeneca reported second quarter core earnings per share of 87c and revenue of $5.05B, with consensus at 80c and $5.07B, respectively. The company also reiterated its 2017 outlook and announced that AstraZeneca and Merck have entered a global strategic oncology collaboration to co-develop and co-commercialize AstraZeneca's LYNPARZA for multiple cancer types. Bristol-Myers also announced second quarter results this morning. The company reported adjusted earnings per share of 74c and revenue of $5.1B, with consensus at consensus 74c and $5.09B, respectively. Bristol also raised its 2017 earnings per share view to $2.90-$3.00 from $2.85-$3.00. CEO DEPARTURE RUMORS: Earlier this month, a media report said that AstraZeneca CEO Pascal Soriot would be moving to Teva Pharmaceuticals (TEVA). According to a more recent report, Soriot sent an internal memo this week to his employees saying that he intends to attend September's European Society for Medical Oncology annual meeting in Madrid. PRICE ACTION: In morning trading, shares of AstraZeneca have dropped over 15% to $28.72, while Bristol's stock has slipped almost 5% to $53.23. Meanwhile, Merck is up over 3% to $63.75.

Research firm Macquarie downgraded two amusement park operators, Six Flags (SIX) and SeaWorld (SEAS), this morning, citing rising competition. SELL SIX FLAGS: Three new attractions due to be launched in 2019 - the American Dream project in New Jersey, Legoland in New York, and Grand Texas Theme Park - could threaten about 35% of total visits to Six Flags' parks, warned analyst Matthew Brooks. Moreover, in general the high margins that Six Flags has been able to generate along with the increased competition facing brick and mortar retailers will cause more competitors to enter the sector, Brooks believes. Additionally, the international joint ventures that the company is targeting face hurdles, including low oil prices and Fed rate hikes that often cause investment and consumer spending in emerging markets to decline, the analyst warned. Six Flags' free cash flow yield, sometimes used as a metric by investors, will drop, as it is set to pay much higher taxes in 2019, the analyst stated, adding that "new parks could amplify the drop." He slashed his price target on the shares to $40 from $64 and cut Six Flags to Underperform, the firm's equivalent of a sell rating. SEAWORLD: Brooks believes that a lower lease payment by SeaWorld for its San Diego park indicates that revenue from the park declined by about $8M from January to May. The analyst says that the decline is "largely due to" changes the company made in the show which stars its Orca whale. A similar change will be made at the company's Orlando park next year, potentially lowering its revenue by $8M-$10, the analyst warned. Moreover, reviews have not been stellar for the company's new Ocean Explorer attraction in San Diego or its new Kraken VR ride in Orlando, added Brooks. Meanwhile, the company could be hurt by "major new attractions and new themed areas" being launched by Disney (DIS) and Universal in Florida and California "into the 2020s," according to the analyst, who lowered his price target on the stock to $15 from $22 and downgraded the stock to Neutral from Outperform. PRICE ACTION: In morning trading, Six Flags fell 2% to $57.85 and SeaWorld sank 4.7% to $14.33.

Shares of Teladoc (TDOC), which offers a telehealth platform to deliver on-demand healthcare to patients through mobile devices, the Internet, video and phone, and athenahealth (ATHN), which offers network-enabled services to support healthcare providers, are sliding after a report that discussed Amazon's (AMZN) "secret" health care projects. AMAZON 1492: Amazon has started a secret health care team, called "1492," which focuses on hardware and software projects in areas including electronic medical records, telemedicine and health apps, CNBC reported last night. The team is currently seeking opportunities that involve data from legacy electronic medical record systems in an effort to provide that information to consumers and their doctors, according to the report. SPECTRE OF AMAZON: As these two stocks appear to be reacting to even a notion that Amazon may be planning to enter their areas of expertise, shares of Ulta Beauty (ULTA) slid yesterday following a news report claiming that the e-commerce giant is considering a partnership deal with beauty space retailer Violet Grey. Other stocks that have recently had pullbacks attributed to Amazon headline worries include Home Depot (HD), Lowe's (LOW), Best Buy (BBY), Whirlpool (WHR), Zillow (Z, ZG) and Core-Mark (CORE). PRICE ACTION: In early trading, athenahealth has slipped 1.7% to $143.24 while Teladoc is down over 6% to $32.20.

Shares of Spirit Airlines (SAVE) dropped in early trading after its earnings beat was overshadowed by a significant amount of pilot-related flight cancellations in the quarter. QUARTERLY EARNINGS: Excluding special items, Spirit reported second quarter earnings per share of $1.14, beating analysts' consensus estimate of $1.10. Revenue for the quarter was $701.7M, falling short of the $702.29M consensus. Total revenue per available seat mile, or TRASM, for the quarter was up 5.7% over the year ago period, and Spirit said results benefited from the Easter calendar shift as well as company-driven revenue initiatives and a "strong" underlying demand environment. Spirit President and Chief Executive Officer Bob Fornaro said that while the underlying revenue trends and progress Spirit had made on revenue initiatives heading into the quarter were "encouraging," overall performance was "disappointing" given the level of operational disruptions. Fornaro continued, "Despite our financial and operational challenges in Q2, the changes in our pricing and revenue management strategies helped to drive year-over-year improvement in passenger and non-ticket revenue per segment -- this is the first time in over two and a half years either of these metrics increased year over year." PILOT-RELATED TROUBLES: During the quarter, Spirit said it had over 850 pilot-related flight cancellations, which it said adversely impacted its quarterly results by approximately $45M, including about $25M or revenue loss. Had these cancellations not occurred, Spirit believes Q2 TRASM would have been up about 6.5% year over year and adjusted CASM excluding fuel would have been up about 2%. Chief Financial Officer Ted Christie commented that while Spirit's Q2 cost performance "was not satisfactory, we do not believe it materially changes our long-term cost outlook." Spirit said the company and its pilots, represented by the Air Line Pilots Association, remain in open contract negotiations under the supervision of the National Mediation Board. WHAT'S NOTABLE: Spirit first noted the pilot woes in a June 8 regulatory filing, saying that the company experienced an "elevated" number of pilot-related cancellations during the month of May. At the time, Spirit said its revenue had been negatively impacted by a "modest level" of book away related to the disruptions, but said the "underlying strength" in the revenue environment was helping to offset some of these pressures. Cowen analyst Helane Becker said Spirit's updated removed an overhang and reiterated a Market Perform rating and $62 price target on shares. PRICE ACTION: Spirit Airlines is down 15% to $41.49 in early trading. Shares are down 22.6% year-to-date. OTHERS TO WATCH: The broader airline sector is also lower this morning, with Southwest Airlines (LUV), which also reported quarterly earnings today, down about 7%.

UP AFTER EARNINGS: Procter & Gamble (PG), up 2%... GNC (GNC), up 6.5%... Facebook (FB), up 6.4%... Cliffs Natural (CLF), up 1.8%... Comcast (CMCSA), up 2.2%... Mastercard (MA), up 1.5%... Anheuser Busch Inbev (BUD), up 6%... Verizon (VZ), up 3.7%... Innoviva (INVA), up 7.3%. DOWN AFTER EARNINGS: Southwest Airlines (LUV), down 1.7%... UPS (UPS), down under 1%... Spirit Airlines (SAVE), down 4.4%... Rent-A-Center (RCII), down 6.1%... Fortinet (FTNT), down 3.9%... Boston Scientific (BSX), down 1.5%... Discover (DFS), down 4.2%.