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Under Armour Inc (UA), Workday Inc (WDAY) and Demandware Inc (DWRE) – 3 Stocks to Watch on Wednesday

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The U.S. stock market returned to action following Memorial Day in a herky-jerky way that resulted in stocks sliding a little on Tuesday. The S&P 500 fell 0.1% Monday, while the Dow Jones Industrial Average dipped 0.5%.

Heading into Wednesday's action, more than a few stocks will be on the move. Among some of the stocks investors and traders should be watching today for activity are Demandware Inc (NYSE: DWRE ), Under Armour Inc (NYSE: UA ) and Workday Inc (NYSE: WDAY ).

Here's how these companies will be kicking off humpday:

Demandware Inc (DWRE)

Cloud-based e-commerce service provider Demandware is rocketing higher this morning on news that it will be acquired by cloud solutions expert Salesforce.com, Inc. (NYSE: CRM ).

CRM plans to spend $2.8 billion in cash, which comes out to $75 per share - a 56.25% premium to the Tuesday closing price of DWRE stock. Salesforce plans on using Demandware to push out its new Salesforce Commerce Cloud, and will gain well-known customers such as L'Oreal SA (ADR) (OTCMKTS: LRLCY ) and Lands' End, Inc. (NASDAQ: LE ).

TechCrunch points out that the acquisition "opens up Salesforce to competition" with companies such as Amazon.com, Inc. (NASDAQ: AMZN ) and eBay Inc (NASDAQ: EBAY ).

The acquisition pulls DWRE out of a slump that had seen the company shed more than 35% of its value since August 2015. Demandware shares were rocketing nearly 56% higher in Wednesday's premarket trade.

CRM stock was off 2%.

Under Armour Inc (UA)

UA shares are in for a rough Wednesday after the company updated its full-year guidance to reflect the fate of bankrupt Sports Authority .

Under Armour now expects to bring in $4.93 billion in revenues this quarter - $70 million lower than its previous guidance, and shy of Wall Street's expectations of $5.03 billion. UA believes it will collect only about a quarter of what Sports Authority owes it, and the company also will suffer an impairment charge of $23 million this quarter.

This comes just a couple of months after Under Armour said it was standing by its financial outlook following Sports Authority's bankruptcy protection filing.

UA shares are off 3% this morning, and competitor Nike Inc (NYSE: NKE ) - which is owed $47 million by Sports Authority - is off 3% as well.

Workday Inc (WDAY)

Lastly, Workday shares could take a tumble this morning in light of the company's quarterly earrnings .

In its fiscal first quarter, Workday reported a loss of 41 cents per share. However, on a non-GAAP basis, earnings of 5 cents per share beat the consensus estimate for a 2-cent loss. Revenues of $345 million also beat Wall Street expectations of $338.7 million.

Workday's strong revenue in the quarter was thanks partially to the growth of the company's cloud business.

Guidance was fine, too, with the bottom end of its $371 million-$373 million range in line with analyst estimates.

WDAY looks to shed 2% at Monday's open, which would further extend the stock's mid-single-digit declines in 2016.

As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.

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The post Under Armour Inc (UA), Workday Inc (WDAY) and Demandware Inc (DWRE) - 3 Stocks to Watch on Wednesday appeared first on InvestorPlace .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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