Friday has seen several stocks make notable moves ahead of the market opening, with Nike () and Karuna Therapeutics () capturing the most attention. The sportswear company fell notably on the , while Karuna’s shares jumped higher after to be acquired by Bristol Myers Squib for $14 billion. Nike Stock Plunges on Lower Revenue OutlookSportswear and apparel giant Nike saw its stock price plummet over 11.6% in premarket trading on Friday after introducing plans to cut costs by around $2 billion over the following three years and cut its sales outlook.Specifically, Nike now expects full-year revenue to grow just 1%, down from a previous growth forecast of mid-single-digits. For the current quarter, the company estimates reported revenue to be slightly negative due to challenging comparisons in the previous year. Sales are expected to be up by low single digits in Q4.
“Last quarter as I provided guidance, I highlighted a number of risks in our operating environment, including the effects of a stronger U.S. dollar on foreign currency translation, consumer demand over the holiday season and our second half wholesale order books.”
– said Nike CFO Matthew Friend.
“Looking forward, the impact of these risks is becoming clearer.”
Nike faced a in 2023, rising just 3.1% year-to-date. Karuna Pops 47% After Agreeing $14B Deal With Bristol Myers SquibMeanwhile, shares of schizophrenia drugmaker Karuna Therapeutics popped over 47% ahead of Friday’s market open after reaching a deal to be acquired by Bristol Myers Squib for $14 billion in cash. According to the terms of the deal, Bristol would pay $330 per share for Karuna, marking a 53.4% premium to the biotech firm’s last closing price. This is the second major acquisition for Bristol in two months. In October, the biopharmaceutical giant agreed to for $5.8 billion.
“We expect KarXT to enhance our growth through the late 2020s and into the next decade.”
– Bristol Myers CEO Christopher Boerner said in a statement.
is Karuna’s investigational drug targeting a different brain chemical than most existing schizophrenia treatments and with fewer side effects. Analysts expect KarXT to see multi-billion dollars in sales. The decision on its use in adults is due by September 2024. Bristol’s acquisition of Karuna is expected to hit the former’s earnings per share by around 30 cents in 2024 because of financing costs. More By This Author:Rocket Lab Stock Up 17.3% After $515M Agreement with US GovUS Third-Quarter GDP Trimmed To 4.9%, Jobless Claims Lower Than ExpectedBitcoin’s Price Was $16.8k A Year Ago; How High Can It Go In December 2024?
