A federal judge’s decision to block JetBlue Airways’ proposed acquisition of Spirit Airlines has sent both companies’ stocks plunging, with Spirit Airlines falling 22% and JetBlue Airways dropping 8% in midday trading. Analysts at Bank of America and Susquehanna have downgraded Spirit Airlines in response to the ruling, expecting a negative impact on the airline.
Interactive Brokers, the electronic broker, saw its shares climb nearly 2% after announcing its mixed fourth-quarter results. While the company’s adjusted revenue of $1.15 billion beat analysts’ estimates, adjusted earnings fell short by 3 cents per share.
An announcement from broadcaster Sinclair about a settlement with Diamond Sports Group caused a 13% jump in its shares. Sinclair will be paying $495 million in cash to Diamond as part of the agreement.
SolarEdge, a solar stock, fell 5% following a downgrade by Barclays to an underweight rating. The bank cited a tougher road to recovery compared to its peers.
Shares of virtual healthcare platform Teladoc dropped 4.5% after being downgraded to neutral by D.A. Davidson. The investment firm cited stalling growth as the reason for its decision.
The cloud computing company Nutanix added 2% after receiving an outperform rating from William Blair. The investment firm expects Nutanix shares to rise as the industry undergoes reshuffling following the Broadcom-VMware acquisition.
Food delivery service Instacart experienced an 8% increase in shares after Wolfe Research upgraded its rating to outperform. The firm sees an “attractive” risk/reward profile at current levels and believes the company has multiple paths towards strong revenue growth, including a potential merger with Uber.
Electric vehicle manufacturer Rivian slid nearly 8% following a hold rating downgrade from Deutsche Bank. The bank expressed concerns that Rivian’s efforts to grow its gross margin may take longer than expected.
Tesla saw a 3% decrease in stock prices after announcing price cuts for its Model Y cars in Europe. This follows similar price cuts the company made in China recently.
Ford’s stock declined 2.5% after being downgraded to neutral by UBS. The bank believes Ford’s stock is currently trading at a fair valuation and could face tougher times ahead compared to its competitors.
Investment bank Morgan Stanley’s shares fell 2% following a neutral rating downgrade from JPMorgan. This came after the release of the bank’s mixed quarterly report, which included hefty regulatory charges and warnings of significant downside risks ahead from CEO Ted Pick.
Morgan Stanley’s rating changes also affected other companies. Polaris, the automotive manufacturer, saw an almost 2% increase in shares after receiving an overweight rating upgrade, while toymaker Mattel experienced a 2.8% decline after being downgraded to equal weight, both by Morgan Stanley.
The Federal Aviation Administration’s announcement that it had completed inspections on Boeing’s 737 Max 9 airplanes caused a 1% increase in the aircraft manufacturer’s stock. This comes after Boeing experienced various setbacks, including a door panel detaching midflight.
American electric vehicle company Fisker suffered a 10% drop in shares after being downgraded to market perform by TD Cowen. The firm cited a shift in distribution strategy, delivery issues, missed timelines, and a softening in the overall EV market as reasons for their downgrade.
Crypto mining firm Marathon Digital saw a 3% decline in its shares despite receiving an upgrade to buy from BTIG. Analyst Gregory Lewis mentioned the recent approval of bitcoin exchange-traded funds as a positive catalyst for the company, which recently closed its acquisition of two bitcoin mining sites.
As companies continue to react to recent changes and market conditions, investors should closely monitor their investments and align their strategies accordingly.