Hot Stocks: T trades after WBD deal; MSP takeover deal; MSFT slips on analyst comment

Apr. 11, 2022 12:08 PM ETAT&T Inc. (T)MSP, MSFT, NIOBy: Brian Stewart, SA News Editor9 Comments

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Monday's midday trading saw AT&T (NYSE:T) mark its first day of action following the spin-off and merger that created Warner Bros. Discovery (WBD). The telecom giant gained ground in the wake of the transaction.

M&A headlines also gave a lift to Datto Holding (MSP). The stock rose after the firm agreed to a takeover deal.

Turning to some of the day's notable decliners, Microsoft (MSFT) experienced selling pressure following a cautious note from UBS. NIO (NIO) also dipped, dragged down by news that it has been forced to curtail production due to supply chain issues.

Gainers

AT&T (T) gained ground in the wake of the spin-off transaction that created Warner Bros. Discovery (WBD). On a post-split basis, the stock rose nearly 8% during intraday trading.

Late last week, T closed its $43B transaction with Discovery, merging the media operations of the two companies. As a result, T broke off its Time Warner unit, which owns assets like HBO and CNN, to combine it with Discovery, the parent of networks like Food Network and Animal Planet.

Elsewhere, a takeover deal sparked a massive wave of buying in shares of Datto Holding (MSP). The stock jumped 21% after the cybersecurity and data backup firm agreed to be acquired by IT management software company Kaseya.

Under the deal, the transaction comes with a purchase price of $35.50 per share. The deal is slated to close in the second half of the year.

Losers

Pessimistic analyst commentary put pressure on Microsoft (MSFT). The stock dropped almost 4% in midday trading after UBS predicted a "gentle deceleration" in growth of the firm's Office 365 product.

UBS maintained its Buy rating and $360 price target on the software giant. However, the firm argued that already high penetration, partly related to accelerated growth during the pandemic, will likely lead to slower expansion in the future.

In other news, NIO (NIO) lost ground in intraday action, falling 4% after the Chinese electric vehicle maker revealed that it has suspended production at its factory in Hefei. The firm blamed the move on COVID-related supply chain problems.

NIO also revealed that it will raise prices for three of its models, as well as for its battery rental service. The move comes amid ongoing inflationary pressures, including a sharp rise in raw material costs.

For more on the day's best- and worst-performing stocks, click over to Seeking Alpha's On The Move section.

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