Traders work on the floor of the New York Stock Exchange.
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Check out the companies making headlines in midday trading.
Twitter — Shares of the social media company fell more than 8% after Elon Musk backed out of his $44 billion deal to buy Twitter. Musk claimed that Twitter underreported the number of spam bots on the platform. The two parties likely face a lengthy court battle, and Musk could also face paying a $1 billion separation fee.
Casino Stocks – Shares in Wynn Resorts and Las Vegas Sands fell 9.4% and 8.8%, respectively, after Macau instituted a week-long shutdown as it struggled with a Covid-19 outbreak. Monday marked the first time in more than two years that Macao has closed all of its casinos.
Lululemon, Under Armor – Activewear retailers’ shares were lower after downgrades by Jefferies. Lululemon fell 4% after the company downgraded its rating on the stock from “hold” to “underperform,” citing “increasing competition.” Under Armor was down about 4.7%. Jefferies downgraded it to neutral from buy and said fundamentals were “flagging”.
Meta Platforms – The social media company’s stock fell 4.2% after Needham downgraded it from hold to underperform. The firm pointed to Meta’s heavy investment in the metaverse, which may take too long to pay off.
Uber – Shares in ridesharing fell more than 4% after a report from the International Consortium of Investigative Journalists, which said Uber had campaigned hard to relax labor and tax laws and used “stealth technology” to rip off the to block government control. The company issued a statement acknowledging past mistakes and stressing that Uber “is a different company today.”
Nio – Nio shares fell 8.4% as China appears to be battling another wave of Covid-19. Reuters reported that several Chinese cities have imposed new health restrictions. The automaker also announced that it has formed a committee to investigate allegations made against Nio by a short seller last month.
Amazon — The e-commerce giant slipped 2.3% after Bloomberg reported that U.S. Prime subscriber numbers faltered in the first half of the year, possibly due in part to the $20 membership price hike in February . Amazon had 172 million members as of June 30, up from six months ago, the report said, citing Consumer Intelligence Research Partners.
Upstart – Upstart rose as much as 2.6% on Monday as investors tried to buy the drop. The company’s stock suffered a setback last week after announcing it would miss its already reduced second-quarter financial targets and JMP Securities downgrading it. Shares are down more than 80% this year.
– CNBC’s Yun Li, Sarah Min, Samantha Subin, Carmen Reinicke and Jesse Pound contributed coverage.