Adobe Systems world headquarters in downtown San Jose, Calif.
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Check out the companies making headlines in midday trading.
Netflix — The streaming stock gained 7% after Evercore ISI upgraded Netflix to an outperform rating and said its stock could rally more than 30% as it rolls out an ad-supported service and cracks down on password sharing.
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Adobe — Adobe shares slumped 15% on news that it’s acquiring a design software firm known as Figma for roughly $20 billion in cash and stock. The company beat earnings estimates for the period but shares mixed guidance for the current quarter.
Oracle – Shares of the software company dropped another 2%, extending a 5% sell-off from the previous session on weak earnings. Oracle’s earnings came in at $1.03 per share, adjusted, compared to the $1.07 per share expected by analysts, according to Refinitiv. Its revenue met expectations, however.
Rail stocks — Select rail stocks moved higher following the announcement of a tentative, last-minute deal between the railroad companies and the unions that represent their workers. Union Pacific and Norfolk Southern rose 1.6% and just below 1%, respectively. CSX Corp. was down more than 2% despite ticking up in extended trading before the bell.
‘Buy now, pay later’ stocks — Shares of major “buy now, pay later” stocks slipped on the back of a report from the Consumer Financial Protection Bureau calling for more oversight into the sector. PayPal and Affirm Holdings both declined less than 1%, while Block‘s stock added nearly 2%.
Fisker — The electric vehicle maker’s share price jumped 3.6% after Needham initiated coverage of Fisker with a buy rating as demand for electric vehicles accelerates. Tesla shares rose about 1% amid an upgrade to a hold rating from underperform.
Nordstrom — The department store stock gained 2% after Jefferies upgraded it to a buy rating. The firm said in a note to clients that Nordstrom is better positioned than some of its peers in a downturn.
Deckers Outdoors — Deckers Outdoor’s stock edged more than 2% higher after Wedbush upgraded the footwear company to outperform, saying in a note to clients that it’s well situated to ride out a difficult retail environment.
Arconic Corp — Shares of the manufacturing company tumbled nearly 15% after Arconic cut its full-year forecast amid higher energy costs in Europe and declining demand.
Duckhorn Portfolio — Shares of the winemaker dropped 8% after being downgraded by JPMorgan to neutral from overweight. JPMorgan said it still likes Duckhorn, calling the company’s long-term and operational performance track record since its initial public offering “impressive.” However, the firm is concerned Duckhorn’s guidance could disappoint.
— CNBC’s Alex Harring, Michelle Fox, Yun Li and Sarah Min contributed reporting.