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EARLY MOVERS: Starbucks, Costco and Merck slide on results; acquisition

Adobe stock loses ground after a miss on earnings; Shopify drops on share offering

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Starbucks shares slide in premarket.

Coffee retail giant Starbucks Corp (NASDAQ:SBUX) stock fell Friday after it said same store sales growth will probably remain steady. The company, which is synonymous with the coffee culture of Seattle, said annual same store sales growth would be unchanged at 3% to 4% over the long term. The company is engaged in a major push to double the number of its stores in China and expand delivery options in the world's second biggest economy.

Shares of Starbucks were down almost 3.8% to $64.38 in the premarket.

Costco Wholesale Corporation (NASDAQ:COST) shares dropped after reporting an earnings miss although revenue came in ahead of expectations. Earnings per share reached $1.61, compared with expectations of $1.62. Revenue hit $35 billion, versus the expected $34.5 billion. Costco's same-store sales were up 8.8%, in-line with forecasts.

Costco shares retreated almost 3.8% at $218.02.

READ: Starbucks shares abuzz after better-than-expected 4Q results

Adobe Inc (NASDAQ:ADBE) stocks declined after reporting a miss on earnings in its fourth quarter report. The company said earnings per share hit $1.83, compared with expectations of $1.89. Revenue stood at $2.46 billion, versus the expected $2.43 billion. The maker of popular software like Photoshop and Acrobat also raised its revenue forecast for the full year.

Adobe shares were trading at $242.70, down nearly 2.2%.

Merck & Co Inc (NYSE:MRK) shares lost ground after announcing a major acquisition. The drugmaker said it would buy the privately held Antelliq Group, which makes digital identification products for animals, for about $2.37 billion. Merck said it will make a cash payment and assume Antelliq's debt of $1.3 billion, which it plans to repay shortly after the closing of the deal.

Merck stock declined around 1.7% to $77.70.

Shopify Inc (NYSE:SHOP) shares tumbled after it launched an offering of subordinate voting shares. A total of 2.6 million Class A subordinate voting shares will be offered. Shopify expects to use the net proceeds to strengthen its balance sheet and provide flexibility to fund its growth strategies. Morgan Stanley and Credit Suisse are acting as joint bookrunners in the offering.

Shopify stock dropped 7.2% to $149.50.

Contact Rene Pastor by [email protected]

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