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Stocks - Uber, GrubHub Fall in Premarket; SmileDirect Plunges on Weak Q1

Published 05/14/2020, 09:12 AM
Updated 05/14/2020, 09:13 AM
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By Geoffrey Smith 

Investing.com -- Stocks in focus in premarket trade on Thursday, May 14th.

  • Uber (NYSE:UBER) stock fell 3.4% as excitement waned over its possible combination with GrubHub (NYSE:GRUB). The Wall Street Journal reported that the two sides were still in talks on a deal, but that the two sides were looking at an exchange ratio of around 1.9 Uber shares for every GrubHub one.
  • That would value GrubHub’s equity at around $5.8 billion at current prices, a little higher than the $5.35 billion implied by Wednesday’s close. GrubHub stock was down 3.7% in premarket.
  • SmileDirectClub (NASDAQ:SDC) stock was down 8.1% after the company reported a wider loss than expected for the first quarter and scaled back plans to expand its physical presence.
  • Cisco Systems (NASDAQ:CSCO) stock was up 1.2% after the maker of network gear said revenue fell only 8% in the three months through April, its fiscal third quarter and predicted a 9.5% drop for the current quarter.
  • The forecasts were marginally less bleak than expectations.
  • Exxon Mobil (NYSE:XOM) stock fell 2.2% as shareholder activists increased their stake in the company, with a view to forcing stricter environmental governance on it.
  • Norwegian Cruise Line (NYSE:NCLH) stock fell 3.7% after its first-quarter earnings missed expectations, even though the company said that it had enough liquidity to last 18 months, and that 2021 bookings were within historical ranges.
  • Fiat Chrysler Automobiles (NYSE:FCAU) stock was down 3.1% after it and French group Peugeot (OTC:PUGOY) decided to suspend their regular annual dividends for 2019, with a view to strengthening the balance sheet of what will be a combined company. The special dividend due to Fiat Chrysler shareholders under the merger deal wasn't cancelled.

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