Traders work the floor of the Dow Jones at the closing bell of the New York Stock Exchange.
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Check out the companies making headlines midday on Friday:
Uber Technologies — Shares of the transportation and food ordering service company fell 7.8% after reporting a huge loss during the second quarter. Uber announced a $5.2 billion loss during the quarter due to substantial stock-based compensation costs.
Micron Technology, Skyworks Solutions — Micron and Skyworks Solutions fell 3.3% and 3.9%, respectively, after Bloomberg News reported the U.S. will hold off on letting U.S. companies use Huawei products. President Donald Trump also said the U.S. will not do business with Huawei. President Donald Trump later said the U.S. is “not going to do business with Huawei.”
Activision Blizzard — Activision Blizzard fell 3.6% after issuing weaker-than-expected guidance for the third quarter. Activision reported a forecast for its third-quarter adjusted revenue of $1.10 billion and profit of 20 cents per share, below analysts’ estimates of $1.36 billion and 40 cents per share.
CBS — CBS shares dropped 4% despite the company reporting positive results for its quarterly earnings. The company had an adjusted quarterly profit of $1.16 a share, 4 cents above estimates, and revenue also beat forecasts, boosted by ad sales for the NCAA men’s basketball tournament and increased content licensing and distribution fees. CBS is in final talks with Viacom on a merger agreement, which is expected soon.
Dropbox — The online file storage and sharing service company’s stock nosedived 12.9% after the company’s second quarter results missed on two key metrics, which counteracted strong sales and earnings. The company reported deferred revenue of $517.3 million compared to the FactSet estimate of $527.7 million. Deferred revenue is a key metric for subscription-based services such as Dropbox. The company’s billings for the quarter also disappointed investors, coming in at $410.4 million. Analysts polled by FactSet expected billings to come in at $420.3 million.
News Corp — News Corp shares jumped 5.1% after the company reported adjusted quarterly earnings of 7 cents a share, beating estimates by 4 cents. The Wall Street Journal publisher’s revenue missed forecasts, however, due to lower ad revenue and falling book sales in its publishing unit, as well as other factors. Earnings beat in the quarter due to cost cuts across the company and a higher contribution from News America Marketing than in the previous year.
Nektar Therapeutics — Nektar Therapeutics plunged more than 30% Friday after the company revealed manufacturing errors for a cancer drug that is currently in clinical trial. One version of the drug, which the company is developing with Bristol-Myers Squibb, had recently received a breakthrough designation from the Food and Drug Administration for early results treating melanoma.
Albemarle — Shares of Albemarle slid 5.2% after the chemical company announced its plans to delay construction of about 125,000 tons of lithium processing capacity due to the oversupply of the metal used to make electric vehicle batteries pushing down prices. The trade war between the U.S. and China have upset the commodity markets, particularly Lithium.
DXC Technology — Shares of DXC Technology plummeted more than 30% after lowering its full year guidance for earnings and revenue. The business-to-business IT services company is now targeting earnings between $7.00 and $7.75 per share and revenue between $20.2 billion and $20.7 billion for the year. Last quarter, the company gave guidance of $7.75 to $8.50 in earnings per share and $20.7 to $21.2 billion in revenue. The company did beat expectations in its first fiscal quarter, reporting earnings of $1.74 per share and $4.89 billion in revenue. Analysts had expected $1.71 in earnings per share and $4.882 billion in revenue, according to Refinitiv.