In premarket trading, Nike shares took a sharp decline of 12.1% after the athletic retailer announced a reduction in sales guidance and plans to cut costs by $2 billion over the next three years. This news comes as Nike posted its second consecutive quarter of worse-than-expected revenue, a trend not seen since 2016. Foot Locker, a major seller of Nike products, also experienced a decline of 7.1%.
Bristol Myers Squibb Acquires Karuna Therapeutics
Bristol Myers Squibb saw its shares slip by 1% after announcing an agreement to acquire Karuna Therapeutics for $14 billion, at a price of $330 per share. This acquisition will give Bristol Myers Squibb access to Karuna Therapeutics’ experimental schizophrenia drug, which is currently under review with the FDA. In response to the news, Karuna Therapeutics experienced a significant surge of 46% in its stock value.
Chinese Internet Companies Experience Drop in Stock Value
Following the release of draft guidelines by China aimed at reducing incentives for gaming, U.S.-listed shares of Chinese internet companies faced a decline. NetEase saw its stock plummet by 22.2%, while BiliBili experienced a drop of 10.6%.
Rocket Lab Secures $515 Million Government Contract
Rocket Lab witnessed a 12.6% increase in its stock value during premarket trading after announcing an agreement with a U.S. government customer to develop and manage 18 vehicles. The contract is valued at $515 million and work on fulfilling it will begin immediately.
Coinbase Receives Positive Outlook from Investment Bank JMP
Coinbase, the popular crypto exchange, saw a 1.3% increase in its stock value following an optimistic call from investment bank JMP. The bank nearly doubled its target share price for Coinbase, comparing the company to the Amazon of the cryptocurrency space.
Analog Devices Stock Rises After Upgrade by Edward Jones
Shares of semiconductor company Analog Devices rose by 1.1% after receiving an upgrade from Edward Jones, moving from hold to buy. The upgrade was based on the expectation that increased automation and connected devices will lead to a higher demand for chips.
Hot Take: Nike Struggles Highlight Challenges in Retail Industry
The significant decline in Nike shares serves as a reminder of the challenges faced by retailers in today’s market. Slashed sales guidance and worse-than-expected revenue demonstrate the need for companies to adapt to changing consumer behaviors and preferences. As the retail landscape continues to evolve, it is crucial for businesses to stay agile and find innovative ways to attract and retain customers.
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