Popular stocks: Nvidia, Adobe, Opendoor, Pop Mart, and Sainsbury’s

NVIDIA Shares Dip Amid China Investigation

NVIDIA (NVDA) saw its shares drop over 2% in pre-market trading, following news from China regarding a preliminary investigation into chipmakers potentially violating anti-competitive laws.

According to reports, Chinese market regulators announced their decision on Monday to extend their investigation into NVIDIA, citing findings from this initial review.

This inquiry particularly scrutinizes NVIDIA’s acquisition of Israeli chip designer Mellanox Technologies, which took place in 2020. The state’s market regulation authority had initiated an antitrust investigation into the prominent U.S. chip manufacturer late last year.

In other market news, Adobe (ADBE) garnered attention on Monday after multiple stock analysts adjusted their price targets post the company’s third-quarter results announcement.

Piper Sandler (PIPR) reaffirmed its “overweight” rating but lowered its price target from $500 to $470 per share. Meanwhile, UBS (UBSG.SW) retained its “neutral” rating while reducing its target from $400 to $375 per share. Conversely, Barclays (Barc.L) kept its “overweight” status but slightly increased its target from $460 to $465.

This change followed Adobe’s better-than-expected third-quarter performance, as it projected revenues between $5.99 billion and $5.911 billion. Adjusted earnings per share also surpassed expectations, reporting at $5.31 compared to the forecast of $5.18.

Following these results, Adobe raised its fiscal year 2025 revenue target, now estimated between $23.65 billion and $23.7 billion, adjusting earnings per share forecasts from $20.80 to $20.85.

In pre-market trading, shares of Opendoor Technologies (OPEN) climbed 4.3% after a significant announcement from its co-founder and newly appointed chairman regarding necessary workforce reductions. Keith Labore indicated that a cut of 85% of the staff might be required to address what he described as “bloated” costs.

Labore, who was appointed last week, mentioned, “With 1,400 employees, I’m unsure what most are doing. We really only need about 200.” Following recent corporate shifts, including the hiring of Shopify’s Kaz Nejatian as CEO and the interim leadership of Srisha Radhakrishna, Opendoor’s share price had soared the previous week.

Over in Hong Kong, shares of Pop Mart International, the Lovebu Maker, plummeted 6% after JPMorgan downgraded the stock of Chinese toy makers. As per Bloomberg, a JPMorgan analyst pointed out, “The review suggests that small errors and negative media could significantly impact performance.” Analysts downgraded the stock from “overweight” to “neutral,” with a price target reduced to HK$300 per share. Still, despite Monday’s dip, Pop Mart shares have surged more than 189% since the year began.

In the UK, Sainsbury’s (SBRY.L) stock jumped 5% on Monday morning, making it the largest gainer on the FTSE 100 (^FTSE). This rise follows the supermarket chain’s announcement that it had ended discussions with China’s JD.com about selling Argos, just a day after confirming the talks.