Check out the companies making headlines before the bell:
Delta Air Lines ( DAL ) — Delta shares fell 2.9% in premarket trading after reporting a mixed quarter. The airline earned an adjusted $1.44 per share in the second quarter, shy of the consensus estimate of $1.73. Revenue beat forecasts due to strong travel demand, but margins suffered from higher fuel prices and higher operating costs.
Twitter ( TWTR ) – Twitter added 2% in premarket trading after the company sued Elon Musk to force him to abide by the terms of their $44 billion acquisition. Musk said earlier this week that he was pulling out of the deal, claiming that Twitter violated the terms of their agreement.
Snap (SNAP) – The social media company is poised to introduce a feature that will allow NFT artists to showcase their designs on Snapchat, according to people familiar with the situation who spoke to the Financial Times. Snap initially rose 1.7% in premarket action before paring those gains.
Stitch Fix (SFIX) – Shares of the clothing designer rose 9.5% in the market following news that Benchmark Capital’s Bill Gurley bought one million shares. Gurley paid an average of $5.43 per share, according to an SEC filing. Gurley, who serves on Stitch Fix’s board, already owned 1.22 million shares before the latest purchase.
Unity Software ( U ) – The interactive software technology provider announced an all-stock merger agreement with ironSource ( IS ), an Israel-based software publisher. The transaction values ironSource at approximately $4.4 billion. Unity also announced it was lowering its full-year revenue forecast. Unity fell 8.2% in premarket trading, while ironSource jumped 57%.
Novavax ( NVAX ) — Shares of the drugmaker added 2.4% in premarket action after Politico reported that the company’s Covid-19 vaccine could win FDA approval as early as today.
DigitalOcean ( DOCN ) — The cloud computing company’s stock received a double downgrade from Goldman Sachs, which cut its rating to “sell” from “buy.” Goldman’s move is based on expectations of softening demand, particularly in international markets, as well as easing tailwinds in segments that have performed well over the past 12 to 18 months. DigitalOcean fell 3.5% in premarket trading.
Gap (GPS) – Shares of the apparel retailer fell 1.3% in premarket trading as Deutsche Bank downgraded the stock to “hold” from “buy.” Deutsche Bank said there was little visibility of a recovery in sales at Old Navy, as well as concern about the increased level of promotions at both Gap and Old Navy. Shares fell 5% on Tuesday after news that CEO Sonia Singhal was stepping down.
Fastenal (FAST) — The industrial fastener maker saw its shares fall 7% in premarket trading after it said it saw signs of softening demand in May and June. Fastenal’s comments came as it reported quarterly numbers that were broadly in line with analysts’ forecasts.
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