Tesla Motors Inc.
For Elon Musk it’s a “no brainer,” but investors were less than certain Tuesday night after the tech magnate announced a $2.8 billion deal for his company Tesla Motors (TSLA) to buy the struggling SolarCity Corp., Musk’s renewable energy company.
Musk said the combined company could benefit from consumer appetites: Why not get your solar panel, electric car and battery pack all at once? But investors punished Tesla’s stock in after-hours trading, unclear as to how the car manufacturer would be affected by SolarCity’s $6.2 billion in debt and other liabilities.
Shares of SolarCity (SCTY), meanwhile, advanced 15 percent on the news of Musk’s stock offer. The company is the largest provider of residential solar installation in the country.
Adobe Systems Inc.
Shares in the software company Adobe (ADBE) slid in premarket trading after projecting a lower-than-expected earnings forecast for the current quarter. Still, analysts at Bernstein, Goldman Sachs and Citigroup all raised the stock’s target price Wednesday.
Analysts at Cowen and Co. cut shares of Nike (NKE) to $65, from $70, a day after analysts cut their price outlook for the stock to $67, from $74. The stock, trading down slightly before the market's open, has been under pressure for months, with competition rising in the basketball space.
Marathon Oil Corp.
After a year that saw its stock price plunge 45 percent, Marathon Oil (MRO) is seeing a rebound Wednesday after announcing it will pay $888 million for PayRock Energy, which specializes in oil exploration. Analysts at several banks raised their targets for Marathon Wednesday morning.