Netflix, Snap, Warner Bros. Discovery, AT&T, Novavax and more

Check out the companies making headlines in midday trading.

Netflix— Netflix tumbled 8.6% following a report from Digiday that said the streaming stock’s early-stage advertising business is missing viewership targets. The company is reportedly offering to refund money to advertisers.

Novavax — Shares of the drugmaker plummeted 34.3% after it proposed a sale of up to $125 million in common stock and a $125 million convertible debt offering.

Warner Bros. Discovery – Warner Bros. Discovery’s stock shed 8.9% after increasing its restructuring cost estimates by $1 billion. The media giant’s been making efforts to cut costs since the merger of AT&T’s WarnerMedia unit and Discovery earlier this year.

Verizon, AT&T — The communication technology stock added 0.85% after Morgan Stanely upgraded it to overweight from equal weight, saying its shares were attractive compared with historical levels. AT&T shares 2.28% following a separate downgrade from Morgan Stanley that cited the stock’s recent outperformance.

Snap – Shares of social media company Snap slipped 8.18% after it was downgraded to hold from buy by analysts at Jefferies due to an uncertain macroeconomic backdrop likely to weigh on earnings.

Western Digital – The chip stock tumbled 10.1% after Goldman Sachs downgraded the name to sell from neutral. The Wall Street firm cited high inventory and slowing demand in the memory business.

Delta Air Lines – Delta sank 3% after the stock was downgraded to in line from outperform by Evercore ISI, which said it now sees a more balanced risk/reward for the name. Thursday’s decline comes after shares gained Wednesday on the airline’s forecast that 2023 earnings will nearly double.

JetBlue – JetBlue slipped 3.6%, continuing declines after the airline on Tuesday warned that December demand is weaker than it previously expected. Cowen also downgraded the stock to market perform from an outperform rating.

Lennar – Shares of Lennar rose 3.8% after the homebuilder reported mixed results for its most recent quarter. Revenue came in higher than expected, according to Refinitiv, but earnings of $4.55 per share missed estimates. The company’s outlook for new orders was also weaker than expected.

Trade Desk – Shares of the advertising trading platform fell 8.2% after a Jefferies analyst downgraded the stock to hold from buy. The firm said in a note to clients that Trade Desk has “best-in-class fundamentals” but is already trading at a premium to its peer group. The stock may also be under pressure from the Digiday report about Netflix returning some advertiser money.

Madison Square Garden Entertainment — Shares rose 1.4% after Morgan Stanley upgraded the stock to equal weight from underweight. The investment bank cited “increased visibility” into the earnings power for Madison Square Garden Entertainment’s venues in New York, and its Sphere venue in Las Vegas, which could boost shares.

Marriott International — Shares fell 2.5% after Barclays downgraded the lodging stock to equal weight from overweight, saying that shares trade fairly given the rising macro risks.

Lockheed Martin — Shares dropped 1.3% after Morgan Stanley downgraded the stock from overweight to equal weight, saying its outperformance should somewhat cool in 2023. However, the firm said it’s still bullish on the company’s portfolio and raised its price target.

— CNBC’s Alex Harring, Carmen Reinicke, Michelle Fox, Jesse Pound, Sarah Min, Tanaya Macheel and Yun Li contributed reporting