Stock Movers: BioMarin Rises on Acquisition, FedEx Drops on Costs, Nike Sinks on Sales Warning

Nike's Sales Warning and Margin Shrinkage

• 📉 Nike (NKE) shares are down approximately 10% following their third-quarter earnings report.
• ⚠️ Investors were disappointed by third-quarter guidance, with expectations of sales to be down low single digits and gross margins to shrink by roughly 2 percentage points.
• 🇨🇳 The company reported weak sales in China and a decline in its Converse brand.
• 📉 Analysts at City have cut their price target for Nike shares to $65 from $70.

FedEx's Mixed Financial Performance

• 📦 FedEx (FDX) shares experienced an intraday drop of up to 5.6%, the largest since June 25.
• 📈 While FedEx upgraded its full-year targets, the magnitude was less than its second-quarter earnings beat.
• 💰 The company raised the low end of its profit outlook, aided by volume and pricing gains in the US.
• ✈️ However, FedEx anticipates a $600 million hit to adjusted earnings due to increased costs from grounding some of its MD-11 planes.

BioMarin's Acquisition and Portfolio Expansion

• 🚀 BioMarin (BMRN) shares surged 17%, marking its biggest jump since November 2016, driven by deal news.
• 🤝 The company has agreed to acquire Amicus Therapeutics for approximately $4.8 billion.
• 💊 This acquisition is expected to allow BioMarin to expand its portfolio of treatments for rare diseases.
• 💰 Investors see this move as a strategic step, leveraging BioMarin's pricing power in the rare disease market.