Broadcom (AVGO) represented one of the high-profile movers in Tuesday’s midday trading. Shares dropped amid indications that it would be losing a sizable portion of its business from Apple.
Elsewhere, a weak forecast put pressure on shares of Omega Healthcare Investors (NYSE:OHI). On the other side of the spectrum, Oak Street Health (OSH) jumped on reports that it was in talks to be acquired, while Oatly (OTLY) received a boost from an expanded footprint in Scandinavia.
Decliners
Broadcom (AVGO) retreated in midday trading, hurt by reports that Apple is moving away from AVGO’s chips in its products. The stock fell more than 3% on the news.
According to Bloomberg, AAPL is planning to replace combination Wi-Fi and Bluetooth chips made by AVGO with ones the iPhone maker produces in-house. The move is reportedly set to start in 2025.
Omega Healthcare Investors (OHI) also showed midday weakness, dropping more than 6% after the real estate investment trust, which focuses on healthcare facilities, provided a soft forecast.
OHI revealed that both its EBITDA and funds available for distribution will decline in Q1 compared to the previous quarter. The company reported that some of its operators have had trouble paying rent or mortgage obligations due to ongoing COVID impact.
Gainers
Reports of takeover interest sent Oak Street Health (OSH) sharply higher in midday trading, with shares of the primary care center operator jumping by almost 30%. This came after Bloomberg reported that CVS Health (CVS) is exploring the purchase of OSH in a deal that could be valued at $10B.
According to the news outlet, the parties are engaged in ongoing talks but no final decision has been made. Oak Street rival Cano Health (CANO) also gained in intraday action, climbing by about 15%.
Oatly (OTLY) represented another notable midday winner. Shares of the maker of dairy alternatives surged 13% on news that it has expanded its partnership with Norwegian conglomerate Reitan.
Under the deal, OTLY products will become available in coffee machines in about 300 locations of Swedish convenience chain Pressbyrån. The agreement creates availability in 90 7-Eleven convenience stores in Sweden as well.
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