Tilray, Twitter, United Airways, Chipotle, Moderna & extra

A security guard stands in a greenhouse of the European production site of the medical cannabis producer Tilray in Cantanhede on April 24, 2018.

Patricia De Melo Moreira | AFP | Getty Images

Check out the companies that are making headlines in midday trading.

Tilray – Tilray shares surged more than 20% after the cannabis company and Peer Aphria reached a business combination agreement, creating a new giant in the growing industry. The all-stock deal will result in a combined company valued at approximately $ 3.9 billion.

Moderna – Moderna stocks fell more than 6% after Morgan Stanley downgraded the drug maker from overweight to equilibrium. The bank cited its increased valuation following the stock’s 600% rally this year amid high expectations for its coronavirus vaccine.

Dish Network – Dish Network shares fell more than 7% after it was announced that the company would raise $ 2 billion through a convertible bond offering. Dish said the funds will be used for general corporate purposes and 5G network expenses.

United Airlines – An analyst at JPMorgan downgraded United Airlines from overweight to underweight, pushing the stock down 3.5%. Citing concerns about the stock’s valuation, the analyst noted, “The recent surge in airline stocks has significantly reduced the implied upside potential for some of our December 21 price targets, some of which have already exceeded those targets.”

Twitter – Social media stock rose 3.9% after JPMorgan moved it from neutral to overweight and named it a top pick. The company said it was bullish on the online advertising market in 2021 and Twitter should be one of the biggest beneficiaries of this sector as it bounces back.

Teladoc – The remote healthcare company’s stake fell more than 5% after Business Insider reported that Amazon was working on a company to provide medical care to workers at large corporations. According to the report, the effort would include basic online services.

Chipotle – The restaurant chain’s shares rose more than 4% after Stifel upgraded Chipotle to a buy rating. “Chipotle has shown impressive resilience during the pandemic and we believe the brand should benefit from increased consumer mobility and multiple sales promotion initiatives in 2021,” the company said in a statement to customers. Stifel also increased its 12-month price target from $ 1,400 to $ 1,500.

Southwest Airlines – Southwest shares fell 2.3% after the airline cut its forecast for operating income in December. The company expects sales to decline between 65% and 75% year over year. Southwest had previously forecast a decline between 60% and 65%.

Spotify – The streaming platform’s stocks lost more than 2% after Credit Suisse downgraded the stock from overweight to neutral. The Wall Street company said Spotify’s valuation had increased and most of the positive factors were priced into the stock.

GoDaddy – The website builder’s shares rose more than 5% after GoDaddy announced it was acquiring payment company Poynt. Under the terms of the agreement, GoDaddy will pay $ 320 million in cash and $ 45 million in deferred cash, with certain factors applying over a three-year period. The deal is expected to close in the first quarter of 2021.

– CNBC’s Maggie Fitzgerald, Pippa Stevens, Jesse Pound and Fred Imbert contributed to the coverage.

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