Meanwhile, Kingsoft Cloud (KC) retreated as well, dragged down by disappointing quarterly revenue.
Looking to the upside, ADT Inc. (NYSE:ADT) posted a double-digit percentage gain following new investments from Google and State Farm.
Ciena (CIEN) lost ground in midday trading following a downgrade from J.P. Morgan. The firm lowered its rating on the telecom equipment maker to Neutral from Overweight, pointing to “limited upside” for the stock. The downgrade sparked a nearly 3% drop in CIEN.
In announcing the neutral rating, analyst Samik Chatterjee called the firm’s revenue target “too stretched.” Chatterjee also spotlighted potential cost headwinds from components, freight and logistics.
Elsewhere, analyst comments also put pressure on FedEx (FDX). Shares dropped almost 2% after Citi downgraded the package delivery giant to Neutral from Buy, amid general caution about the transportation sector.
“We spent the last week running checks across our coverage universe and as we enter 3Q conference season and the run into year-end, we’re concerned about the pace of freight activity and think upcoming data points are likely to skew negatively, particularly peak season,” analyst Christian Wetherbee wrote.
The company reported a narrower-than-expected Q2 loss, but revenue failed to meet projections. The top-line figure dropped 12% from last year to dip below $285M.
ADT Inc. (ADT) found buying interest in midday trading, bolstered by news that the provider of home security systems has received sizable investments from Google and State Farm. ADT rallied more than 14% on the news.
ADT announced that State Farm has invested $1.2B in the company, acquiring about 15% of the company. The deal also includes a new partnership meant to mitigate risks related to water, fire, intrusion and other homeownership-related concerns.
Under the agreement, State Farm will also invest up to $300M in product innovation. Meanwhile, ADT revealed that Google has committed an incremental $150M for what it calls “a success fund” meant “to expand access for more customers to smart home innovation and technologies via new sales programs and other related activities.”
To track Wall Street’s best- and worst-performing stocks, head over to Seeking Alpha’s On The Move section.