SDC - Hot Stocks: UPST SDC plunge on earnings news; APP falls on U merger deal; NLSN rallies

Earnings news and deal-making represented critical drivers of intraday action on Tuesday. On the earnings front, Upstart ( UPST ) and SmileDirectClub ( NASDAQ: SDC ) both recorded double-digit percentage declines following their respective quarterly reports.

Turning to M&A headlines, AppLovin ( APP ) plunged after agreeing to an all-stock deal to acquire Unity Software ( U ). Meanwhile, Nielsen ( NLSN ) rallied as an accord with a key shareholder paved the way for a takeover deal to move forward.

Decliners

Upstart ( UPST ) endured significant selling pressure after the company missed expectations with its Q2 earnings. Based on the results, shares fell 11% in midday trading.

The AI lending platform blamed the Q2 shortfall on "a difficult macroeconomic environment that led to funding constraints." The firm also issued disappointing Q3 results, targeting a revenue figure of $170M. Analysts were looking for a total near $247M.

Earnings news also sparked selling in SmileDirectClub ( SDC ). The maker of dental corrective devices said revenue dropped 28% from last year to reach $126M.

The company also cut its revenue forecast for 2022. SDC projected a total between $450M and $500M, down from its previous forecast of $600M-$650M.

AppLovin ( APP ) represented another midday decliner, falling nearly 12% after agreeing to an all-stock deal to acquire Unity Software ( U ). Under the deal, the firm will exchange 1.152 APP Class A voting shares and 0.314 shares of Class C non-voting shares for each U share.

Gainer

Nielsen ( NLSN ) jumped 21% in intraday action amid a deal with shareholder WindAcre that moves forward a previous bid to acquire the provider of TV and internet ratings.

The agreement calls for WindAcre to join a consortium buying NLSN. The firm had previously opposed the takeover deal, which was led by Elliott Investment and Brookfield Business Partners.

For more on the day's biggest winners and losers, head over to Seeking Alpha's On The Move section .

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