Twitter, Starbucks, Tesla and more

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Find out which companies are making headlines in the midday business.

Twitter The social media company soared 26.6% after a filing revealed that Elon Musk took a 9.2% passive stake in the company worth around $2.9 billion . The purchase came weeks after Tesla’s CEO polled his more than 80 million Twitter followers on whether the platform upholds free speech principles. Musk also recently hinted at creating his own site. The move sparks speculation among analysts that Musk could take a more active stake in Twitter or even consider a takeover down the road.

Tesla – Shares rose 4.1% after Tesla announced first-quarter electric vehicle deliveries. The more than 310,000 vehicle deliveries marked a quarterly record, but slightly missed Wall Street consensus estimates. Most analysts attributed the failure to Covid shutdowns in Shanghai, where Tesla has a large factory.

Starbucks The coffee chain fell 4.6% following the suspension of its share buyback program. The move comes as Howard Schultz returns to the helm as the company’s CEO and amid a bigger union push by the company’s baristas.

JD.com, Netease, Alibaba, Tencent Music – U.S.-listed shares of Chinese companies rallied after China proposed revising privacy rules around audit oversight. This decision could prevent the delisting of these companies in the United States. JD.com jumped 8%, Netease 2%, Alibaba 6.4% and Tencent Music 8.8%.

Hertz – Shares of the rental car company jumped 9.3% after Hertz announced a partnership with electric vehicle company Polestar. As part of the deal, Hertz will purchase up to 65,000 electric vehicles over the next five years, according to a press release.

Logitech – The stock rose 6.3% after Goldman Sachs switched the company to a “buy” from “neutral” and said it could see big gains from growing trends towards gaming and videoconference.

Quest Diagnostics – Shares fell more than 1% after Citi downgraded the diagnostic information services company to neutral since the purchase, due to uncertainty surrounding its post-pandemic model. Citi cited Quest’s margin outlook this year and next, as well as increased labor pressures and volume declines.

Baxter – Shares fell 3.3% after Goldman Sachs downgraded the stock to a sell rating of neutral. The company said the call was due to “Baxter’s over-indexing of headwind variables and risky numbers.”

Ollie’s Bargain Outlet Holdings – Retail stock jumped 13.1% after Wells Fargo upgraded overweight Ollie’s from equal weight. Wells Fargo said the stock could prove to be a “coil spring” after the company weathers its pandemic-era disruptions.

– CNBC’s Yun Li, Samantha Subin, Sarah Min, Jesse Pound and Tanaya Macheel contributed reporting.

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