HomeNewsTuesday’s market recap: Stocks show mixed movement on earnings reports, UK CMA wants Facebook to sell Giphy

Tuesday’s market recap: Stocks show mixed movement on earnings reports, UK CMA wants Facebook to sell Giphy

  • Adagio jumps on social media chatter
  • Zscale jumped on fiscal Q1 2021results as Salesforce did in weak Q4 guidance
  • CMA informs Facebook that it should sell Giphy

On Tuesdays, various stocks made major moves moving up while others trended lower at the back of various announcements.

Adagio Therapeutics jumps 35%

Adagio Therapeutics Inc. (NASDAQ: ADGI) shares jumped 35% before dropping in mid-day on Tuesday for a net gain of 4.5%. The surge triggered social media conversation, which saw the stock continue trending upwards in a second successful day, with volume surpassing 10 million shares. On Monday, shares were up 86% after the company's CEO Tillman said that the company’s COVID antibody could be effective against all variants.

Zscaler reported a net loss of $90.8 million 

Zscaler Inc. (NASDAQ: ZS) shares were up 5% in extending trading on Tuesday following robust fiscal Q1 results. The company reported a net loss of $90.8 million compared to $55 million a year ago. The cloud-based information security firm earned $0.14 per share on an adjusted basis.  Also, the San Jose-based firm reported revenue of $230.5 million, representing a YoY growth of 62%, and raised its full-year revenue guidance.

Salesforce beats Q3 2021 earnings 

Another company that releases its earnings is Salesforce.com Inc. (NYSE: CRM) which beat Q3 earnings estimates but dropped 7% after hours after issuing weak guidance. The company has a profit of $468 million on annual sales growth of almost 27% to around $6.86 billion. Earnings were $1.27 per share on an adjusted basis.  For the fourth quarter, the company predicts EPS of $r0.72 to $0.73 per share on sales of $7.23 billion.

Biogen’s Alzheimer’s drug causes brain swelling 

Biogen Inc. (NASDAQ: BIIB) shares dropped marginally on Tuesday, extending the decline this month to almost 14%. This comes at the back of the company losing an appeal on Tecfidera, its multiple sclerosis drug after the US Court of Appeals for the Federal Circuits upheld the decision the trial court made. In addition, another report on Monday put pressure on the shares following reports that its Alzheimer's treatment produced brain swelling in 35% of the patients in a study.

CMA wants Meta to sell Giphy

Despite Facebook Inc. (NASDAQ: FB) changing its name to Meta, its challenges with regulators continue to persist. The UK competition watchdog Competition and Market Authority has informed the social media giant that it should sell GIF-sharing platform, Giphy. The regulator said that the deal would harm UK social media users and advertisers. CMA claims the acquisition of Giphy will reduce competition between platforms and social media apps.

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