Nike and Foot Locker Stocks Plummet
Shares of Nike and Foot Locker took a hit in midday trading. Nike’s stock plummeted 10% after the company announced a cut of about $2 billion in costs over the next three years and slashed its revenue outlook. Nike’s fiscal second-quarter revenue of $13.39 billion fell short of analysts’ expectations. Foot Locker, which sells Nike products, also slid nearly 5%.
Bristol Myers Squibb Acquires Karuna Therapeutics
Bristol Myers Squibb shares rose by 2% while Karuna Therapeutics’ stock jumped 47% following the announcement that Bristol Myers will acquire the biopharmaceutical company for $14 billion in cash. Under the terms of the deal, Bristol Myers will pay $330 per share for Karuna, representing a 53% premium from Thursday’s closing price.
Chinese Internet Giants Experience Stock Decline
Shares of Chinese internet giants Tencent Music Entertainment, NetEase, and Bilibili took a hit after Beijing proposed guidelines to curb online gaming. Tencent’s stock slid 4%, Bilibili slipped 5%, and NetEase plummeted more than 15%.
Rocket Lab Soars with Government Contract
Rocket Lab’s stock soared by 24% after the space company announced it had signed a $515 million contract with the U.S. government to design, manufacture, and operate 18 space vehicles. The regulatory filing indicated positive growth for the subsidiary.
Coinbase Receives Bullish Outlook
Coinbase, the crypto exchange, saw its shares rise nearly 5% following a bullish outlook from JMP. The bank doubled its target price for Coinbase stock, referring to it as the “Amazon of the cryptocurrency industry.”
Paychex Faces Downgrade
Despite a downgrade to market perform from outperform by TD Cowen, shares of payroll company Paychex rose more than 1% on Friday. This comes after the company’s fiscal second-quarter revenue missed analysts’ expectations.
Lionsgate Entertainment Announces Merger
Lionsgate Entertainment’s stock slid 5% after the company revealed plans to merge with Screaming Eagle Acquisition Corp., a special purpose acquisition company. The deal is valued at $4.6 billion and would bring about $350 million in gross proceeds to Lionsgate.
Ansys Considers Takeover Interest
Engineering software firm Ansys experienced an 11% increase in its stock following reports that it was considering its options after receiving takeover interest.
Hot Take: Stock Market Volatility Continues Amidst Company Announcements
The stock market remains volatile as several companies make significant announcements. Nike and Foot Locker face challenges due to revenue outlook cuts, while Bristol Myers Squibb acquires Karuna Therapeutics in a multi-billion-dollar deal. Chinese internet giants suffer as Beijing proposes gaming restrictions, and Rocket Lab secures a lucrative government contract. Coinbase receives a positive outlook, while Paychex faces a downgrade. Lionsgate Entertainment plans a merger, and Ansys explores takeover options. Investors must stay informed and navigate these developments carefully as they impact the market.
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