Here are the companies that are making headlines on Wall Street.
MSG Entertainment: Madison Square Garden parent company announced Friday that it will buy media company MSG Networks in a stock deal. The companies said in a statement that the combined entity would be better positioned to take advantage of the expansion of sports betting. Shares of both companies fell more than 9%.
Nio: US-traded shares of Chinese EV stock fell more than 8% after Nio announced that one of its production plants was idle for five days. The company cited a global semiconductor shortage as a reason for the hiatus and cut its guidance for first-quarter deliveries.
Bank of America, JPMorgan Chase – Most bank shares rose slightly after the Federal Reserve announced that companies could resume buybacks and increase dividends after June 30. Bank of America shares rose 1.4%, while JPMorgan added 0.7%.
Snowflake: Data company shares gained more than 5% after Evercore ISI initiated coverage with a higher rating. “We believe there are few software firms in the last decade that have as great a growth opportunity as Snowflake,” the firm wrote in a note to clients. Evercore has a target of $ 311 in the stock, which is about 36% above where the stock traded on Friday.
ViacomCBS, Discovery – Shares of media companies continued to decline as Wall Street worries about the valuation of these broadcast and television stocks. ViacomCBS shares fell 12.9% after being downgraded to underweight from the same weight by Wells Fargo, while Discovery’s shares fell 19.5% after being downgraded to the same weight from overweight by the same company.
BowX acquisition – The special-purpose acquisition company jumped nearly 8% after news that it will go public with shared office company WeWork in a deal worth $ 9 billion, including debt. The valuation is a far cry from the $ 47 billion WeWork was valued for a traditional IPO in 2019.
Root: The auto insurer’s shares rose more than 16% after a bullish call from Citron Research. The research firm said that Root is a “disruptive technology company” and that it has been misunderstood. Citron recently abandoned its short selling strategies after the GameStop craze and now only focuses on the long side.
Progress Software: Tech stocks rose 4.9% after reporting stronger-than-expected results for the first quarter. Progress reported earnings of 91 cents a share on revenue of $ 129 million. Analysts surveyed by Refinitiv were projecting 78 cents in earnings per share and $ 128 million in revenue.