Twitter, Tilray, Underneath Armor, Lyft, GM & extra
A photo illustration shows the blocked Twitter account of US President Donald Trump on a smartphone in the meeting room of the White House in Washington, USA, on January 8, 2021.
Joshua Roberts | Reuters
Check out the companies that are making the headlines in midday trading.
General Motors – The old automaker’s shares fell about 3.5% after the company warned that a global semiconductor shortage could severely affect its profits in 2021. GM’s fourth quarter results exceeded expectations in terms of sales and profits, but the company’s chip shortage would cost the company $ 1.5 billion to $ 2 billion in the coming year.
Twitter – Twitter’s shares rose about 7% after it was revealed that user growth continued to be strong despite ex-President Donald Trump’s exclusion from the platform. Twitter, which on Tuesday night reported fourth-quarter earnings and sales that were above Wall Street’s expectations, said it gained more daily users in January than it did this month in the past four years, even after Trump on Jan. 6 Capitol riots had been banned.
Lyft – The ride-sharing center’s share price rose more than 5% after the company’s fourth-quarter earnings beat Wall Street’s expectations. Lyft is also on track to make EBITDA profitable through the fourth quarter, with an opportunity that could be achieved by the third quarter, said CFO Brian Roberts in the company’s earnings call.
Under Armor – The sportswear company’s stocks rose about 8% after Under Armor posted a surprise gain amid a pandemic-induced surge in consumer spending and interest in exercise and wellness. Under Armor made 12 cents per share on sales of $ 1.4 billion. Analysts polled by Refinitiv expected a loss of 7 cents per share on sales of 1.27 billion US dollars. The clothing company expects earnings to grow in high single digits this year.
Cisco – Technology stock fell more than 4% as the company’s second quarter results showed signs of ongoing fighting. In the company’s leading product segment, infrastructure platforms, sales fell by 3% compared to the previous year. Cisco also expects a return to growth in the next quarter, which will take longer than usual. However, Cisco’s profits exceeded estimates, according to Refinitiv.
Tilray, Canopy Growth, Aphria, Aurora Cannabis – The stocks of the cannabis companies surfaced Wednesday as retailers piled up in hopes of the names the new government will decriminalize the plant. Tilray stocks were up 27%, Canopy Growth stocks were up more than 3%, Aphria stocks were up about 7%, and Aurora Cannabis was up about 11%.
Match Group – The dating service company’s shares rose more than 5% after Match Group announced it would sell South Korea-based Hyperconnect for $ 1.725 billion. USD to buy in cash and stocks. Hyperconnect is a social media company that allows users to connect through video and audio chat. The deal is expected to close in the second quarter.
Pacific Biosciences of California – Biotech shares rose more than 18% after Japanese investment firm Softbank bought $ 900 million in convertible bonds. The stock jump on Wednesday has already pushed the share price well above the original conversion price of USD 42.50 per share. PacBio said the funds will be used for future growth initiatives.
International Flavors & Fragrances – The chemical company saw its shares rise more than 6% after it was revealed that Sachem Head Capital Management added approximately $ 1 billion in stake. Reuters first reported on the investment and CNBC’s Scott Wapner has confirmed the hedge fund’s new stake in the company.
– CNBC’s Maggie Fitzgerald, Pippa Stevens, Tom Franck and Richard Mendez contributed to the coverage.
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