Hot Stocks: EV sell-off; PYPL plunges; ETSY hits low; ATI, MPC rise on earnings
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Despite a slow start, stocks built gains throughout Wednesday's session, with the S&P 500 climbing almost 1%, notching its fourth consecutive day of gains. The advance allowed the market to continue its recovery after the sharp sell-off that blighted most of January.
While the overall market experienced another wave of buying, the electric vehicle segment experienced notable selling pressure. A scandal at Electric Last Mile Solutions (NASDAQ:ELMS), which cut the stock's value in half on Wednesday, created a negative vibe for the sector as a whole.
As a result, Rivian (NASDAQ:RIVN), Lucid (NASDAQ:LCID), Mullen Automotive (NASDAQ:MULN), Workhorse Group (NASDAQ:WKHS) and Hyliion Holdings (NYSE:HYLN) all posted notable losses.
PayPal (NASDAQ:PYPL) also moved counter to the newfound positive mood on Wall Street. Shares lost nearly a quarter of their value after a disappointing quarterly report that included soft guidance for the current year.
Etsy (NASDAQ:ETSY) lost ground as well, weighed down by lingering caution about the company's ability to break out of its limited niche. The stock fell to a new 52-week low.
Looking at some of the day's standout gainers, Allegheny Tech (NYSE:ATI) and Marathon Petroleum (NYSE:MPC) both posted substantial gains in the wake of their respective quarterly reports. 
Sector In Focus
A meltdown at Electric Last Mile Solutions (ELMS) carried over into the wider EV sector, sending some of the more speculative names in the group sharply lower.
ELMS plunged more than 51% after the company announced that its CEO and chairman have resigned. The leadership change followed an investigation conducted by the firm's board of directors, which found that certain executives purchased stock at substantial discounts ahead of its SPAC merger.
The probe also concluded that the firm's financial statements will have to be restated.
The air of controversy hung over other startups in the sector. Rivian (RIVN) and Lucid (LCID) both dropped more than 7%. Meanwhile, Mullen Automotive (MULN) slumped 15%, Workhorse Group (WKHS) declined 9% and Hyliion Holdings (HYLN) retreated 8%.
Standout Gainer
Allegheny Tech (ATI) soared more than 16% after reporting stronger-than-expected quarterly results. The company also attracted investors by announcing a stock buyback plan.
The specialties metals firm posted adjusted net income of about $34M, compared to a loss of nearly $42M in the same period last year. Revenues advanced 16% to reach $765M. ATI also unveiled a $150M stock repurchase program.
ATI jumped $3.21 on Wednesday to close at $22.02. The rally took the stock to its highest level since last June. Shares have climbed about 35% over the past month.
Standout Loser
Weak guidance included with the company's quarterly report sent PayPal (PYPL) reeling on Wednesday. Shares of the online payments company plummeted nearly 25% stock.
PYPL missed expectations with its Q4 earnings. The company's revenue rose 13% to $6.9B, with total payment volume rising 23%.
Looking ahead, PYPL predicted non-GAAP EPS of $4.60-$4.75, well below the $5.26 projected by analysts. The guidance unleashed a torrent of downgrades from the analyst community. This included lowered ratings from BTIG, Raymond James and Oddo BHF. 
In cutting his price target, Evercore ISI analyst David Togut attributed the disappointing projections to supply chain problems and inflationary pressures weighing on the spending power of lower-income consumers. He also noted "steep declines" in volumes at eBay (NASDAQ:EBAY), a key source of activity for PYPL.
Dragged down by the guidance, PYPL tumbled $43.23 to finish the session at $132.57. The retreat also took the stock to a fresh intraday 52-week low of $129.01.
Wednesday's slide intensified a longer-term decline that has marked most of the last five months, as the stock has retreated from its 52-week high of $310.16. PYPL has seen its value cut by more than half since the early days of September.
Notable New High
An earnings beat sparked a 6% rally in shares of Marathon Petroleum (MPC). The advance allowed the stock to set a new 52-week high. 
The oil refiner reported a Q2 profit that surged past expectations, more than doubling the amount expected by analysts. The company also posted 96% revenue growth, with the top line reaching a figure of $35.6B -- more than $9.8B above analysts' consensus.
MPC closed Wednesday's trading at $78.50, an advance of $4.48 on the day. Shares also established an intraday 52-week high of $78.78.
The stock took a dip in mid-January but has otherwise been climbing steadily since late December. It has risen about 20% over the past month.
Notable New Low
Etsy (ETSY) lost ground despite an analyst's upgrade, as worries about the company's long-term ability to grow weighed on the stock. Shares plunged 9% to reach a new 52-week low.
UBS removed its Sell rating on the stock but remained cautious about ETSY's prospects. The firm upgraded the online marketplace to a Neutral but said it remains constrained by a limited TAM. Even with the upgrade, UBS lowered its price target to $180.
ETSY sank $14.12 to finish at $138.04. The stock set an intraday 52-week low of $135.28 earlier in the day.
Shares reached a 52-week high of $307.75 in late November but have fallen steadily since. ETSY has plunged 55% since that peak.

For more on the day's biggest winners and losers, head over to SA's On The Move section.