TLDR
- PayPal shares jumped over 16% after reports of a joint bid from Stripe and Advent International valuing the company at more than $53 billion
- ASML rose after raising its annual sales guidance, citing strong demand from the AI boom
- BlackRock climbed 4.4% after beating second-quarter earnings and assets under management expectations
- Aehr Test Systems surged 30% after posting a strong earnings beat with 33% year-over-year revenue growth
- Pentair plunged 16% after cutting guidance and announcing the departure of its CFO
Softer-than-expected June inflation data gave stock futures a mixed tone Wednesday morning, easing fears of near-term Federal Reserve rate hikes. But rising Middle East tensions, following President Trump’s pledge to continue military strikes until Iran agrees to a deal, kept broader optimism in check.
PayPal was the biggest story of the day. Reports emerged that Stripe and Advent International made a joint offer to acquire PayPal at $60.50 per share. That values the payments company at more than $53 billion, a 28% premium to its prior closing price. The deal is reportedly backed by around $50 billion in committed financing, with each party taking a 50% stake if completed. PayPal and Stripe did not immediately respond to requests for comment.
Aehr Test Systems jumped 30% after reporting a strong fourth quarter. The company posted 33% year-over-year revenue growth and issued fiscal year 2027 revenue guidance of $130 million to $150 million, well above the $85.1 million analyst consensus. It also announced more than $8 million in new silicon carbide orders, including a follow-on from its largest customer and a qualification order from one of the world’s largest automakers.
Chip Stocks and Earnings
ASML rose 3.7% after the Dutch chip-equipment maker raised its annual sales guidance again. The company also said it would increase machine production to meet rising demand driven by the artificial intelligence boom.
Intel climbed 3.2% and Marvell added 0.7% as investors moved into chip stocks. Micron slipped 1.5%. IBM edged up 0.8% a day after tanking 7% on disappointing preliminary results. IT and software stocks including Accenture, Adobe, ServiceNow, and Workday also rose.
BlackRock added 4.4% after its second-quarter earnings and assets under management topped analyst expectations. Morgan Stanley was also set to report second-quarter results before the opening bell.
Losers of the Day
Pentair fell 16% after cutting its second-quarter and full-year guidance. The company now expects full-year adjusted earnings per share of $4.60 to $4.80, down from its prior range of $5.30 to $5.40. It blamed deep inventory issues in its Pool segment, which it expects to reduce full-year Pool sales by around $250 million. The company’s CFO also resigned.
Wabash dropped 14% after announcing a $100 million convertible note offering. The company plans to use the proceeds to repay existing debt.
Johnson & Johnson slipped 1.2% even after raising its full-year outlook. Investors appeared focused on weaker sales of Stelara, its Crohn’s disease treatment.
Lionsgate Studios rose 4% on reports it is exploring a sale and has drawn interest from France’s Bolloré Group.
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