U.S. Stocks to Watch: Nvidia, Tesla, Applied Materials, Warner Bros.,Cidara Therapeutics, and More

Dow Jones
11/14

US stock futures were falling on Friday, as investors carried on fretting about lofty tech valuations.

These stocks were poised to make moves:

Nvidia stock slipped 1.2%. Amazon has privately joined Microsoft in supporting legislation that threatens to further curb the chip maker's exports to China, the Journal reported, citing congressional aides and people familiar with the matter.

Nvidia stock could also be taking a hit from the broader pivot away from artificial intelligence, with investors worried that valuations have become too high. Shares in AI-enhanced software provider Palantir Technologies slipped 1.4% on Friday.

Tesla stock slipped 2.6% to $391.70, having closed below $400 for the first time since mid-September on Thursday. The electric vehicle manufacturer's stock has fallen since shareholders approved a trillion-dollar pay award for CEO Elon Musk on Nov. 6, as the market rotates away from Big Tech.

Applied Materials shares dropped 4.7% ahead of the opening bell. The chip equipment maker reported better-than-expected earnings and revenue after Thursday's close, and also forecast solid results for the current quarter, which ends in January. Investors may have been looking for stronger results, given the stock's recent rally: As of Thursday's close, Applied Materials was up 37% for the year.

Warner Bros. Discovery climbed 3.7% in premarket trading. Paramount Skydance, Comcast, and Netflix are all preparing bids for the entertainment company ahead of next week's deadline, The Wall Street Journal reported, citing people familiar with the matter. Warner Bros., Paramount, and Netflix didn't immediately respond to a request for comment from Barron's. Comcast declined to comment.

Gap climbed 2.7% to $24.94 after Jefferies upgraded the clothing retailer's stock to Buy from Hold, and raised its price target to $30 from $22. The new price target implies shares can rise 24% from their level as of Thursday's close.

Cidara Therapeutics stock soared 87.8%. Pharma giant Merck is closing in on a deal to buy the biotechnology company at a premium to its $3.3 billion valuation, the Financial Times reported, citing people familiar with the matter. Cidara and Merck didn't immediately respond to a request for comment from Barron's.

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