It has been a quiet day on Wall Street so far as all three indexes are close to flat as traders await the latest earnings reports from major companies.
Among the stocks showing more volatility than the broader indexes are CDK Global Inc (NASDAQ:CDK), Sprint Corp (NYSE:S), 3D Systems Corporation (NYSE:DDD), Stratasys, Ltd. (NASDAQ:SSYS), and Netflix, Inc. (NASDAQ:NFLX). Let’s take a closer look at the latest developments surrounding the companies in question and see what the investors from our database think about them.
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CDK Global Issues Preliminary Results
CDK Global Inc (NASDAQ:CDK) shares are 1.5% in the green today after the company reported preliminary fourth quarter earnings of $0.49 per share, versus guidance of $0.45 per share. Adjusted EBITDA rose 40%, exceeding the forecasted increase of 33%-38%. The strong results were in part due to the management reducing the number of software versions by 20% and the company having solid momentum in other transformation work streams. Management has also accelerated the capital return plan, with a recent commitment to return $1 billion to shareholders by December 2016. Paul Singer’s Elliott Management reported a stake containing over slightly over 8 million shares of CDK Global Inc (NASDAQ:CDK) at the end of March.
Sprint Falls on Parent Aquisition
Sprint Corp (NYSE:S) has retreated by 7.2% after majority owner SoftBank announced the acquisition of ARM Holdings plc (ADR) (NASDAQ:ARMH) for around $32 billion. Although the acquisition doesn’t fundamentally harm Sprint, the M&A deal means that SoftBank won’t have as much to invest in Sprint’s infrastructure as it did before. The U.S. telecom business is highly competitive, and Sprint isn’t exactly in the lead right now in terms of innovation or scale. The number of investors from our database with holdings in Sprint Corp (NYSE:S) rose by three quarter-over-quarter to 20 at the end of March.
On the next page, we take a closer look at 3D Systems Corporation, Stratasys, and Netflix.