The Netflix logo is seen on a TV remote, in this illustration taken January 20, 2022.
Dado Ruvic | Reuters
Find out which companies are making headlines in the midday business.
netflix– Netflix fell more than 9% following a report from Digiday that the streaming stock’s startup ad business is missing audience targets. The company reportedly offered to refund money to advertisers.
Novavax – Shares of the drugmaker fell more than 27% after it proposed a sale of up to $125 million in common stock and a $125 million convertible debt offering.
Discovery of Warner Bros. – Shares of Warner Bros. Discovery lost more than 7% after raising its restructuring cost estimates by $1 billion. The media giant has been struggling to cut costs since merging AT&T’s WarnerMedia unit with Discovery earlier this year.
Verizon, AT&T — The communications technology stock gained 1% after Morgan Stanely put it overweight from equal weight, saying its shares looked attractive relative to historical levels. AT&T shares fell more than 2% following a separate downgrade from Morgan Stanley which cited the stock’s recent outperformance.
Instantaneous – Shares of social media company Snap fell 8.5% after it was downgraded from buying by Jefferies analysts due to an uncertain macro backdrop that could weigh on earnings.
western digital – The chip stock fell more than 8% after Goldman Sachs downgraded the name to sell from neutral. The Wall Street firm cited high inventories and slowing demand in the memory sector.
Delta Airlines – Delta fell nearly 3% after the stock was downgraded in line with the outperformance of Evercore ISI, which said it now saw a more balanced risk/reward for the name. Thursday’s decline comes after shares gained on Wednesday on the airline’s forecast that 2023 profits are expected to nearly double.
JetBlue – JetBlue slid more than 3%, continuing its decline after the airline warned on Tuesday that December demand was weaker than expected. Cowen also downgraded the stock’s performance to market from an outperform rating.
Lennar – Lennar shares rose about 2% after the homebuilder reported mixed results for its latest quarter. Revenue was higher than expected, according to Refinitiv, but earnings of $4.55 per share missed estimates. The company’s outlook for new orders was also weaker than expected.
Commercial counter – Shares of the advertising trading platform fell nearly 7% after a Jefferies analyst downgraded the stock to keep it long. The company said in a note to clients that Trade Desk has “best in class fundamentals” but is already trading at a premium to its peer group. The title could also come under pressure from the Digiday report about Netflix returning money to advertisers.
Entertainment at Madison Square Garden – Stocks rose more than 2% after Morgan Stanley upgraded the stock to equal weight from underweight. The investment bank cited “increased visibility” into earnings power from Madison Square Garden Entertainment locations in New York and its Sphere location in Las Vegas, which could boost stocks.
Marriott International – Shares fell more than 2% after Barclays downgraded housing stock to equal weight from overweight, saying stocks are trading fairly given rising macro risks.
Lockheed Martin – Shares fell 1.5% after Morgan Stanley downgraded the stock from overweight to equal weight, saying its outperformance should ease somewhat in 2023. However, the company said it was still bullish on the company’s portfolio and raised its target price.
– CNBC’s Alex Harring, Carmen Reinicke, Michelle Fox, Jesse Pound, Sarah Min, Tanaya Macheel and Yun Li contributed reporting
