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%.
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.
