iRobot Corporation Shares Fall as EU Competition Watchdog Likely to Reject Amazon’s Acquisition
U.S. stock futures were higher this morning, with the Nasdaq futures gaining over 100 points on Friday. However, shares of iRobot Corporation (IRBT) fell sharply in today’s pre-market trading. The European Union’s competition watchdog is poised to reject Amazon.com Inc’s ambitious $1.7-billion acquisition of iRobot, according to The Wall Street Journal.
The potential rejection comes as a blow to both Amazon and iRobot, as the deal was seen as a strategic move for Amazon to expand its presence in the consumer robotics market. iRobot, known for its Roomba vacuum cleaners, has been a leader in the home robotics industry for years. The acquisition would have allowed Amazon to leverage iRobot’s technology and expertise in its own product offerings.
However, the European Union’s competition watchdog has reportedly raised concerns about the potential anti-competitive effects of the acquisition. If the deal is rejected, it could have significant implications for both companies. iRobot shares dipped 35.8% to $15.16 in pre-market trading, reflecting investor uncertainty about the future of the acquisition.
In addition to iRobot, several other big stocks recorded losses in today’s pre-market trading session. AST SpaceMobile, Inc. (ASTS) shares tumbled 18.5% to $3.39 after the company announced a $100 million offering of common stock. The company also announced a strategic investment from AT&T Inc (T), Alphabet Inc (GOOG), and Vodafone.
MorphoSys AG (MOR) shares declined 10.7% to $9.14 after falling 6% on Wednesday. Morgan Stanley analyst James Quigley downgraded MorphoSys from Overweight to Equal-Weight, further dampening investor sentiment.
Absci Corporation (ABSI) shares fell 5.8% to $3.41 in pre-market trading. The company recently appointed seasoned R&D executive Professor Sir Menelas “Mene” Pangalos to its Board of Directors and as co-chair of Absci’s Scientific Advisory Board. Despite this, investor confidence in the company appears to have waned.
Diversified Energy Company PLC (DEC) shares declined 4.2% to $12.00 in pre-market trading, while XPeng Inc. (XPEV) shares fell 3.9% to $9.49. Chegg, Inc. (CHGG) shares also fell 3.7% to $9.69 after Goldman Sachs analyst Eric Sheridan downgraded the stock from Neutral to Sell and lowered the price target.
Arcutis Biotherapeutics, Inc. (ARQT) shares fell 3.1% to $3.17 in pre-market trading. The company recently announced Health Canada acceptance of the supplement to a new drug submission for Roflumilast Foam 0.3% for seborrheic dermatitis in individuals 9 years of age and older.
Overall, today’s pre-market trading session has been marked by losses for several big stocks. The potential rejection of Amazon’s acquisition of iRobot by the European Union’s competition watchdog is a significant development that could have far-reaching implications for both companies. Investors will be closely watching for further updates on the status of the acquisition and its impact on the market.
