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SoFi’s plan to sell up to $862.5 million in convertible notes falls through
1 hour 2 minutes ago
Shares of SoFi Technologies (SOFI) fell 13% on Tuesday after the online financial services provider announced it plans to sell up to $862.5 million in convertible debt.
A convertible bond is a fixed income bond security that pays interest but can also be converted into a specified number of common shares or shares. The decline in SoFi’s stock price reflects the potential dilution of existing shareholders if the bonds are converted to stock, but to limit that dilution, SoFi is using a portion of its proceeds to pay for capped call transactions. He said the funds would be used for
Essentially, this means SoFi is buying a type of call option on its own stock.
SoFi announced the issuance of $750 million in convertible notes due March 2029. In addition, early investors will have the option to purchase an additional $112.5 million within 13 days after the notes are first issued.
SoFi stock was down 14.3% to $7.35 on Tuesday afternoon, and is down about 26% this year.
-Bill McCall
Dialysis stocks soar after Ozempic kidney disease data disappoint
1 hour 47 minutes ago
The dialysis company’s stock soared on Tuesday after Novo Nordisk (NVO) reported clinical trial results for its kidney disease drug Ozempic were lower than some analysts expected.
Novo Nordisk announced Tuesday that Ozempic reduced the odds of kidney disease progression and cardiovascular or renal death by 24%. The trial, called FLOW, compared outcomes in 3,533 people with type 2 diabetes and chronic kidney disease who received Ozempic 1mg injection or a placebo. The trial ended in October last year, a year ahead of schedule, after preliminary data showed the drug was effective.
The results add to a growing body of evidence that GLP-1 agonists, such as Novo’s Ozempic, Wigovy, and Eli Lilly’s (LLY) Munjaro, have uses beyond diabetes treatment and weight loss. In August, Novo released data showing Wegovy reduced patients’ risk of serious cardiovascular events by 20%.
However, the results were not quite what analysts and investors expected. On Tuesday afternoon, shares of Novohe Nordisk fell more than 2.7%, while the dialysis care provider soared. DaVita (DVA) rose 7% to $134, and Fresenius Medical Care (FMS) rose more than 11% to nearly $21.
iPhone sales in China plummet 24% in first six weeks of this year, Apple stock falls
2 hours 18 minutes ago
iPhone sales in China, Apple’s (AAPL) largest overseas market, fell 24% in the first six weeks of this year, according to market research firm Counterpoint.
The data comes after Apple revealed last month that its Greater China sales fell 13% in the first quarter of its fiscal year.
The iPhone maker’s market share in China fell to 16% in the first weeks of 2024, dropping it to fourth place from second place in 2023, when it had a 19% share. Chinese retail giants JD.com, TMall and Pinduoduo are slashing prices on Apple’s iPhone 15 just five months after its launch to stimulate demand.
Apple shares were down 2.7% at midday Tuesday. It has lost about 11% of its value so far this year.
-Fatima Atalwala
Berlin factory arson causes production to halt, Tesla stock plummets
3 hours 50 minutes ago
Tesla (TSLA) stock fell in early trading Tuesday after the electric car maker was forced to halt production at its Berlin factory following an arson attack on a nearby power transmission tower.
The fire broke out in a field near Tesla’s Gigafactory Berlin Brandenburg in Grünheide, cutting off power to the factory and the surrounding area. The factory was evacuated and employees sent home.
The attack came amid local opposition to Tesla’s efforts to expand the plant, its only assembly plant in Europe. Last July, Tesla applied to local authorities to expand its factory, with plans to add a battery testing center and water treatment facility. Tesla hopes to eventually produce 1 million cars a year at the plant, about double its current production volume.
However, it has been met with resistance from local residents and environmental activists. Late last month, residents of Grünheide voted against Tesla’s expansion plans in a non-binding vote. And last week, nearly 100 activists set up camp in the woods near a factory Tesla plans to demolish as part of its expansion.
Residents and activists have also raised concerns about the factory’s water consumption and the potential for local groundwater contamination.
Tesla shares were down about 4.7% at $179.38 as of 10:45 a.m. ET on Tuesday. It has lost nearly 28% of its value since the beginning of this year.
Target stock price soars after 4th quarter results
4 hours 25 minutes ago
Target (TGT) stock soared in early trading on Tuesday after the company announced better-than-expected earnings for its fiscal fourth quarter of 2023.
The retail giant reported net income of $1.38 billion, up 57.8% from the fourth quarter of 2022, well above Target’s own guidance and analyst estimates compiled by Visible Alpha. Revenues increased 1.7% year over year to $31.9 billion, exceeding expectations, and earnings per share (EPS) also exceeded expectations, at $2.98.
The company said the increase in profits was in part the result of cost reductions and improved inventory management, and outlined plans to introduce a new membership program as part of its Target Circle rewards program.
Target stock rose 12.2% to $168.87 on Tuesday morning. It’s up nearly 18% so far this year.
-Aaron McDade
Stocks that move the most before the market
5 hours 19 minutes ago
Profit:
- Target Inc. (TGT): The retailer’s stock rose 8% after reporting fourth-quarter earnings of $2.98 per share, beating Wall Street’s consensus estimate of $2.41.
- Coinbase Global Inc. (COIN): The cryptocurrency exchange’s stock rose 2% as the price of Bitcoin rose above $68,000 and traded just short of its all-time high.
- Newmont Inc. (NEM): The company’s stock rose 1% as gold prices continued to rise after hitting an all-time high yesterday.
loss:
- Gitlab Inc. (GTLB): Shares of the coding collaboration platform fell 22.2% after forecasting full-year 2025 earnings of 19 to 23 cents per share, well below the 35 cents per share that analysts had expected. % fell.
- Tesla Inc. (TSLA): Shares of the electric car maker fell about 3% after it halted production after a suspected arson fire at its factory outside Berlin cut off power to the factory.
- Apple Inc. (AAPL): The tech giant’s stock fell about 2% after reports that iPhone sales in China were down 24% in the first six weeks of this year compared to 2023.
Stock futures fall in pre-market trading
5 hours 55 minutes ago
Futures trading tied to the Dow Jones Industrial Average fell about 0.3% in early trading Tuesday.
S&P 500 futures also fell by about 0.3%.
Nasdaq 100 futures were trading 0.5% lower about an hour before the market opened.
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