Under Armour Inc (UA), Workday Inc (WDAY) and Demandware Inc (DWRE) – 3 Stocks to Watch on Wednesday

The U.S. stock market returned to action following Memorial Day in a herky-jerky way that resulted in stocks sliding a little on Tuesday. The S&P 500 fell 0.1% Monday, while the Dow Jones Industrial Average dipped 0.5%.

3 Stocks to Watch on Monday: TiVo Inc. (TIVO), Under Armour Inc (UA) and Workday Inc (WDAY)Heading into Wednesday’s action, more than a few stocks will be on the move. Among some of the stocks investors and traders should be watching today for activity are Demandware Inc (NYSE:DWRE), Under Armour Inc (NYSE:UA) and Workday Inc (NYSE:WDAY).

Here’s how these companies will be kicking off humpday:

Demandware Inc (DWRE)

Cloud-based e-commerce service provider Demandware is rocketing higher this morning on news that it will be acquired by cloud solutions expert Salesforce.com, Inc. (NYSE:CRM).

CRM plans to spend $2.8 billion in cash, which comes out to $75 per share — a 56.25% premium to the Tuesday closing price of DWRE stock. Salesforce plans on using Demandware to push out its new Salesforce Commerce Cloud, and will gain well-known customers such as L’Oreal SA (ADR) (OTCMKTS:LRLCY) and Lands’ End, Inc. (NASDAQ:LE).

TechCrunch points out that the acquisition “opens up Salesforce to competition” with companies such as Amazon.com, Inc. (NASDAQ:AMZN) and eBay Inc (NASDAQ:EBAY).

The acquisition pulls DWRE out of a slump that had seen the company shed more than 35% of its value since August 2015. Demandware shares were rocketing nearly 56% higher in Wednesday’s premarket trade.

CRM stock was off 2%.

Under Armour Inc (UA)

UA shares are in for a rough Wednesday after the company updated its full-year guidance to reflect the fate of bankrupt Sports Authority.

Under Armour now expects to bring in $4.93 billion in revenues this quarter — $70 million lower than its previous guidance, and shy of Wall Street’s expectations of $5.03 billion. UA believes it will collect only about a quarter of what Sports Authority owes it, and the company also will suffer an impairment charge of $23 million this quarter.

This comes just a couple of months after Under Armour said it was standing by its financial outlook following Sports Authority’s bankruptcy protection filing.

UA shares are off 3% this morning, and competitor Nike Inc (NYSE:NKE) — which is owed $47 million by Sports Authority — is off 3% as well.

Workday Inc (WDAY)

Lastly, Workday shares could take a tumble this morning in light of the company’s quarterly earrnings.

In its fiscal first quarter, Workday reported a loss of 41 cents per share. However, on a non-GAAP basis, earnings of 5 cents per share beat the consensus estimate for a 2-cent loss. Revenues of $345 million also beat Wall Street expectations of $338.7 million.

Workday’s strong revenue in the quarter was thanks partially to the growth of the company’s cloud business.

Guidance was fine, too, with the bottom end of its $371 million-$373 million range in line with analyst estimates.

WDAY looks to shed 2% at Monday’s open, which would further extend the stock’s mid-single-digit declines in 2016.

As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/06/under-armour-inc-ua-workday-inc-wday-and-demandware-inc-dwre-3-stocks-to-watch-on-wednesday/.

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