Stocks making the biggest moves midday: Nio, PayPal, Western Digital and more
Check out the companies making headlines in midday trading.
Nio — Shares of the Chinese electric vehicle company tumbled 6% after it announced a $2 billion stock offering. The Tesla rival said it would use the proceeds to strengthen its balance sheet and for general corporate purposes.
Coinbase — Shares of the largest U.S. cryptocurrency exchange dropped more than 3% after revealing it received a notice of possible enforcement action from the Securities and Exchange Commission. The regulator intends to sue Coinbase over the product, called Coinbase Lend, the company disclosed in a Tuesday night blog post.
Citrix Systems — Shares of the software company rose nearly 3% after the Wall Street Journal reported that activist fund Elliott Management has built a stake of more than 10% in the stock, putting its stake at roughly $1.3 billion or more. Elliott previously held a board seat at Citrix.
PayPal — PayPal shares retreated 2.7%. The digital payments platform said it would acquire Japanese "buy now, pay later" company Paidy in a deal worth $2.7 billion. The move is the latest in a flurry of "buy now, pay later" plays. Square said in August it would buy Australian firm Afterpay, and Amazon announced a partnership with Affirm. Affirm and Square each lost about 4%.
Coupa Software — Shares of the software name dipped more than 4% despite the company beating top- and bottom-line estimates during the second quarter. Coupa earned 26 cents per share excluding items, compared to the 6-cent loss analysts surveyed by Refinitiv were expecting. Revenue came in at $179.2 million, also ahead of the expected $163 million.
Chinese stocks — A slew of Chinese stocks sold off in unison on Wednesday amid the ongoing Beijing crackdown. Didi, the world's largest ride-hailing company, saw its shares dropping over 7%, while Pinduoduo lost 2.8% and Alibaba slid about 2.5%. The government stepped up its oversight on many industries including tech, education and gaming, while tightening rules for oversea listings. Hedge fund exposure to Chinese equities and indexes listed in the U.S. has dropped to a two-year low.
Chipmakers — Shares of chipmakers were lower Wednesday amid the ongoing global chip shortage, as demand for chips continues to extend beyond cars and computers, outstripping supply. Western Digital shares lost about 3.8%, while Micron Technology fell 1.6% and Nvidia slipped by 1.4%.
— CNBC's Jesse Pound, Pippa Stevens, Maggie Fitzgerald, Hannah Miao and Yun Li contributed reporting
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