A sign is posted in front of a Broadcom office in San Jose, California, on June 3, 2021.
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Check out the companies making headlines in midday trading.
Cisco Systems, Splunk — Shares of Cisco fell 3.9% Thursday after the company said it is acquiring cybersecurity software company Splunk for $157 per share in a cash deal worth about $28 billion. Splunk’s stock price popped 19.1% on news of the deal.
KB Home — The homebuilder stock slid 4.3% after saying it expected its gross housing margin to shrink in the current quarter. KB Home posted its fiscal third-quarter report Wednesday evening, reporting earnings of $1.80 per share on revenue of $1.59 billion. Analysts polled by LSEG, formerly known as Refinitiv, called for earnings of $1.43 per share and revenue of $1.48 billion.
Fox Corporation, News Corp — Shares of Fox Corporation and News Corp gained 3.2% and 1.3%, respectively, on news Thursday that Rupert Murdoch is stepping down as chairman of both companies.
Broadcom — Shares of Broadcom moved lower by almost 2.7%. The action follows a report by The Information that Google is holding internal discussions about dropping the artificial intelligence chip supplier in favor of its own internally developed chips as soon as 2027. A Google spokesperson later told CNBC that the company is “productively engaged” with Broadcom and other suppliers for the “long term.” “Our work to meet our internal and external Cloud needs benefit from our collaboration with Broadcom; they have been an excellent partner and we see no change in our engagement,” the spokesperson said
Eli Lilly — Shares were down 3.4% after the company earlier this week sued several clinics and pharmacies across the U.S. for allegedly selling cheaper, unauthorized versions of the company’s diabetes drug Mounjaro.
Klaviyo — The marketing automation company stock closed Thursday roughly 2.9% higher. Shares of Klaviyo opened Wednesday at $36.75 on the New York Stock Exchange, which was greater than the company’s offering price of $30 per share.
PulteGroup, Zillow Group, D.R. Horton — Shares of companies in the housing industry fell Thursday after data showed U.S. existing home sales fell in August as tight supply raised prices. PulteGroup was down 3.3%, while both D.R. Horton and Zillow lost 3.7%.
FedEx — Shares gained 4.4% a day after the company reported mixed fiscal first-quarter earnings. FedEx reported adjusted earnings of $4.55 per share, greater than the $3.73 forecast by analysts polled by LSEG. Its revenue of $21.68 billion came in below expectations of $21.81 billion.
Paramount, Netflix, Disney — Shares of streaming companies moved higher as writers and producers neared a potential end to the Writers Guild of America strike, people close to the negotiations told CNBC’s David Faber on Wednesday. Paramount was about 0.5% higher, while Netflix lost 0.6% and Disney added 0.2%, taking back earlier gains.
— CNBC’s Alex Harring, Tanaya Macheel and Samantha Subin contributed reporting.