Story
Nike Shares Plunge on Weak Outlook; Synaptics Surges After M&A Deal Amended to All-Cash
Summary
Nike shares fell sharply in premarket trading after the company issued a disappointing full-year forecast, while Synaptics stock jumped after its acquisition by onsemi was revised to a $5.7 billion all-cash transaction.
Shares of Nike (NKE) tumbled nearly 10% in premarket trading Friday after the apparel giant's weak full-year outlook overshadowed a mixed earnings report. The move came amid a broader rise in U.S. stock futures as investors awaited key jobs data for insights into the economy's health.
Nike's Outlook Disappoints Investors
Nike reported mixed results for its fiscal first-quarter 2027, which failed to reassure investors about its future performance. While the company's adjusted earnings of 48 cents per share beat the consensus estimate of 44 cents, its revenue of $11.21 billion fell short of the expected $11.35 billion, according to Investing.com.
The company noted that revenue declined 5% on a currency-neutral basis compared to the prior year. However, it was the weaker-than-expected guidance for the full fiscal year that drove the significant premarket sell-off, signaling potential challenges ahead for the athletic-wear maker.
M&A and Sector News Drive Major Moves
AdIn deal-related news, shares of Synaptics (SYNA) surged 13.8% after the company and onsemi (ON) amended their merger agreement. The transaction has been converted from an all-stock deal into an all-cash acquisition at $123 per share, valuing Synaptics at approximately $5.7 billion. The change was prompted by an unsolicited, non-binding proposal Synaptics received from another party on Sept. 2. Shares of onsemi also rose 6.5% on the news.
Other notable premarket movers included:
- Moderna (MRNA): The biotech firm's stock rose 2.2% after Nasdaq confirmed it will be added to the Nasdaq-100 Index effective Oct. 9. This inclusion is expected to generate buying from index-tracking investment funds.
- Fair Isaac (FICO): Shares dropped 6.9% following a Bloomberg report that the Federal Housing Finance Agency (FHFA) plans to require lenders to use credit data from only two of the three major credit bureaus for mortgages sold to Fannie Mae and Freddie Mac. The news also weighed on credit-reporting agencies Equifax (EFX) and TransUnion (TRU), which fell 3.4% and 2.4%, respectively.
- MicroStrategy (MSTR): The stock gained 2.7% after analysts at Citi raised their price target on the company to $240 from $136, citing potential upside from a higher bitcoin price.
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