Nike Stock Drops 14% in Pre-Market; Nokia Acquires Infinera for $2.3 Billion, and More News (2024)

Nike (NYSE:NKE) – Nike shares fell 14.04% inpre-market trading. Nike exceeded fourth-quarter fiscal earningsestimates with adjusted earnings of $1.01 per share, but sales of$12.6 billion fell short of expectations. Annual revenue of $51.4billion also missed the $51.6 billion target, despite adjustedearnings of $3.95 per share surpassing forecasts of $3.70 pershare. Nike predicted a surprising revenue decline for fiscal 2025,expecting a mid-single-digit percentage drop, against analysts’expected increase of 0.91%. This is due to weakened demand for itssneakers, as it loses market share to newer brands like On andHoka. Nike said it cut overstocked brands and invested in betterrunning shoes, and plans new versions of the Air Max line. For thenext quarter, Nike expects a revenue drop of about 10%. Due toNike’s unexpected fiscal 2025 revenue drop prediction, shares of JDSports and Puma fell significantly, while Adidas shares saw a briefincrease followed by a drop. Analysts expect Adidas to gain marketshare as Nike recalibrates its business until at least spring2025.

Nokia (NYSE:NOK), InfineraCorporation (NASDAQ:INFN) – Nokia will acquire Infinerafor an enterprise value of $2.3 billion to expand its opticalnetworks business, especially in the North American market. Theprice of $6.65 per share represents a 26.4% premium over Infinera’sclosing price. Nokia will pay at least 70% in cash. Nokia sharesrose 1.3% in pre-market trading, while Infinera shares jumped18.4%.

Verizon Communications (NYSE:VZ),AT&T (NYSE:T), T-Mobile(NASDAQ:TMUS) – Major US telecom providers stated on Thursday thatsome of their international traveling users are facing connectivityissues due to an incident with a partner network provider. Verizon,AT&T, and T-Mobile are working to resolve the issue but havenot detailed the extent or the responsible partner.

Super Micro Computer (NASDAQ:SMCI) – SuperMicro Computer may replace Walgreens in the Nasdaq 100 index due toits rising market value. Walgreens faces increasing challenges,having been excluded from the Dow Jones Industrial Average inFebruary and is now at risk of being removed from the Nasdaq 100index. Its stock fell to its lowest level since 1997 afterannouncing the closure of thousands of pharmacies and cuttingfinancial forecasts for the current fiscal year. Shares rose 0.4%in pre-market trading.

Walgreens Boots Alliance (NASDAQ:WBA) – OnThursday, Walgreens shares plunged 22% after reportingthird-quarter fiscal net income of $344 million, or 40 cents pershare, with adjusted earnings of 63 cents, below the expected 68cents. Total sales were $36.351 billion, surpassing last year’s$35.415 billion. The company adjusted its adjusted earningsforecast for the fiscal year to $2.80 to $2.95 per share.Additionally, Walgreens announced the closure of 650 to 700 storesin the US and up to 650 Boots stores in the UK due to weak sales.The company expects pre-tax costs between $3.8 billion and $4.1billion and halved the dividend. Shares fell 0.6% in pre-markettrading.

Accolade (NASDAQ:ACCD) – Accolade exceededfirst-quarter expectations by reporting a loss per share of -35cents, above analysts’ estimate of -48 cents. The company alsoposted revenue of $110.47 million, 5.02% higher than the $105.19million forecast. However, Accolade issued projections for thefiscal second quarter and the year below analysts’ expectations.The company expects revenue between $104 million and $106 millionfor the second quarter and an adjusted EBITDA loss between $8million and $10 million, higher than the projected loss of $5.9million. Shares of the health technology company plummeted 26.3% inpre-market trading.

Biogen (NASDAQ:BIIB) – Eisai and Biogenlaunched their Alzheimer’s treatment, Leqembi, in China, followinglaunches in the United States and Japan. The drug, which removes atoxic protein called beta-amyloid from the brain, is the firstproven to alter the course of the fatal disease. The initial costwill be $345.04 (2,508 yuan) per 200 mg vial.

Novo Nordisk A/S (NYSE:NVO) – Novo Nordisk willlimit initial sales of its obesity treatment Wegovy in China whilemanaging access to the drug for the world’s largest obesepopulation. The company faces the challenge of meeting pent-updemand, taking advantage of a temporary edge over its competitor,Eli Lilly. Shares fell 0.7% in pre-market trading.

Illumina (NASDAQ:ILMN), Grail(NASDAQ:GRAL) – Illumina announced on Thursday that it will recorda $1.47 billion goodwill impairment charge in the second quarterrelated to Grail, a recently spun-off cancer diagnostics company.Goodwill impairment reflects the perceived loss in value of anacquired business. Additionally, it expects an additional charge ofapproximately $420 million for Grail’s in-process research anddevelopment asset.

Microsoft (NASDAQ:MSFT) – Russian hackers whobreached Microsoft’s systems and spied on employee inboxes earlierthis year also stole emails from its customers, the tech giantrevealed on Thursday. The disclosure highlights the extent of thebreach and increases regulatory pressure on Microsoft’s systemsecurity against foreign threats. Shares rose 0.33% in pre-markettrading.

OpenAI – Time magazine and OpenAI have signed amulti-year content agreement, allowing the creator of ChatGPT toaccess Time’s news archive. The AI will cite and link to sources onTime.com in user responses. Financial terms were not disclosed.

Meta Platforms (NASDAQ:META) – Meta, the ownerof Facebook, is considering blocking news content in Australia ifthe government requires payment of licensing fees. Mia Garlick,regional policy director, said all options are being considered,including preventing Australians from sharing news on the platformto avoid such fees. Additionally, a US appeals court on Thursdayrevived a class-action lawsuit by a software engineer against MetaPlatforms, alleging the company refused to hire him, preferringforeign workers paid lower wages, potentially setting a precedentagainst discrimination of American citizens. Shares rose 0.6% inpre-market trading.

Amazon (NASDAQ:AMZN) – Amazon plans to launchits first space internet satellites in the fourth quarter of thisyear, with Project Kuiper customer trials slated for 2025 andlimited commercial service also in 2025. The goal is to competewith Elon Musk’s Starlink network, with a constellation of over3,000 satellites. Shares rose 0.4% in pre-market trading.

Uber Technologies (NYSE:UBER),Lyft (NASDAQ:LYFT) – Uber and Lyft agreed to adopta minimum payment standard of $32.50 per hour for drivers inMassachusetts and pay $175 million to settle a lawsuit brought bythe state’s attorney general. The agreement includes paid leave,accident insurance, and health stipends, reflecting a balancebetween flexibility and benefits. Additionally, Uber is offering upto $1,000 in credits for certain travelers in the US and Canada whoopt not to use their personal cars for five weeks. Instead, theymust use public transportation, car-sharing, or other alternativetransport options to reduce carbon emissions and promotesustainable practices. Uber shares rose 0.3% in pre-market trading,while Lyft shares were stable.

Tesla (NASDAQ:TSLA) – Tesla claims Elon Muskwon the legal dispute over his $56 billion pay package becauseshareholders approved the compensation, despite a judge nullifyingit earlier this year. The company argues that the shareholder vote,which ratified the 2018 package, should influence the finaljudgment. According to the J.D. Power Initial Quality Study for the2024 model year, Tesla no longer stands out in quality amongelectric vehicles due to questionable design changes, such as theremoval of turn signal stalks, which frustrated owners and reducedtheir scores in a key quality survey. Shares rose 0.5% inpre-market trading.

Rivian Automotive (NASDAQ:RIVN) – Rivian plansto reduce material costs in its electric SUVs and pickups by 20% bythe end of 2024, focusing on electronics and process simplificationto achieve profitability. The partnership with Volkswagen shouldhelp reduce operational expenses and launch new affordable models.Shares fell 0.8% in pre-market trading.

Fisker (NYSE:FSR) – Hope is dwindling forowners of Fisker Inc.’s electric SUVs as the company facesbankruptcy. Customers report increasing difficulties in gettingtechnical support for their problematic vehicles. According toBloomberg, an owner in Cincinnati has accumulated a dozenunresolved service calls, while another in Colorado can’t find alocal shop to repair a crack in his vehicle’s sunroof.

Nikola (NASDAQ:NKLA), Walmart(NYSE:WMT) – Nikola delivered its first hydrogen-electricsemi-truck to Walmart Canada, making it the first major retailer inthe country to add this vehicle to its fleet. The initiative ispart of Walmart’s efforts to achieve zero emissions by 2040. Nikolashares rose 3.7% in pre-market trading, while Walmart shares rose0.3%.

Target (NYSE:TGT) – Target is taking a tougherapproach to combat store theft, lowering the minimum valuethreshold for theft intervention from $100 to $50. This change ispart of efforts to control inventory losses impacting its profitmargins. The new directive is expected to be implemented thissummer.

Boeing (NYSE:BA) – Despite Boeing’s financialand production challenges following an incident in January,workers’ willingness to strike for better working conditions willnot change, according to the local union president. Workers,represented by the IAM, seek better retirement benefits and wageincreases above 40% over three to four years after years ofstagnant wages. Additionally, the National Transportation SafetyBoard (NTSB) warned Boeing that it could lose its status as part ofthe incident investigation after violating rules by disclosingnon-public information to the press and speculating on possiblecauses.

Lockheed Martin (NYSE:LMT),Boeing (NYSE:BA) – The joint venture betweenBoeing and Lockheed Martin will replace Sierra Space’s Dream Chaseraircraft with a mass simulator on its Vulcan rocket certificationflight in September, announced Tory Bruno, CEO of United LaunchAlliance. This flight is essential to qualify the Vulcan for USnational security missions.

Banks – Major US banks have sufficient capitalto withstand a severe economic downturn, according to the FederalReserve’s annual stress test results. While they may facesignificant losses in risky business areas this year, the CET1ratio shows robustness, with minimums above regulatoryrequirements. Additionally, ten major banks agreed to pay $46million to settle an antitrust lawsuit accusing them ofmanipulating the interest rate swaps market. Investors claimed thebanks profited from bid/ask spreads, harming competitors andinvestors. The banks include Bank of America(NYSE:BAC), Goldman Sachs (NYSE:GS),JPMorgan Chase (NYSE:JPM),Barclays (NYSE:BCS), BNP Paribas(EU:BNP), Citigroup (NYSE:C), DeutscheBank (NYSE:DB), Morgan Stanley (NYSE:MS),NatWest (NYSE:NWG), and UBS(NYSE:UBS).

New York Community Bancorp (NYSE:NYCB) – NYCBannounced a one-for-three reverse stock split, effective mid-July,aiming to raise the stock price after a 71% drop since January dueto unexpected losses and dividend cuts. The measure aims to attractmore institutional and retail investors.

UBS Group AG (NYSE:UBS) – UBS is restructuringits wealth management sector in the US, hiring Michael Camacho, aformer JPMorgan Chase executive, to lead the unit. Additionally,UBS is creating a new division, Global Wealth Management Solutions,focused on offering various products and services to its advisorsand clients. Camacho, who assumes the role on September 16,replaces Jason Chandler, who will take on a new role in thecompany.

Block (NYSE:SQ) – Block Inc.’s investment inBitcoin allows the company to explore a “potentiallytransformative” technology, according to CFO and COO Amrita Ahuja.The Bitcoin bet is seen as a long-term commitment, with the companyinvesting 10% of gross profit from Bitcoin products monthly. Ahujaemphasizes that Bitcoin could change the reality of underservedconsumers, who typically pay high fees to move money.

Webtoon Entertainment (NASDAQ:WBTN) – Onlinecomics platform Webtoon Entertainment saw its shares rise up to14.3% above the initial price on its Nasdaq debut, reaching amarket value of $2.71 billion. Founded as a side project in 2005 byJunkoo Kim, the company plans to use the $315 million raised in theIPO to expand its presence in North America. Shares jumped 11.17%in pre-market trading.

Chewy (NYSE:CHWY) – Keith Gill, known asRoaring Kitty, posted an image of a dog on his social network X onThursday, generating 2.5 million views and speculation about itsmeaning, possibly related to Chewy Inc. The trading volume of thepet products company’s shares was well above the 65-day average,with shares rising quickly on Thursday but closing the day down0.3%. Chewy shares fell 0.17% in pre-market trading.