Trending Tickers: $AI Tumbles on CEO Rebuke, $GIL to Buy $HBI, $WBTN Soars on Disney Deal
This week, several stocks caught investors’ attention, driven by significant developments and market momentum. Here’s the breakdown of this week’s trending stocks:
C3.ai ($AI) Tumbles After CEO Slams Preliminary Results
C3.ai ($AI), an enterprise AI software provider serving large corporate and government clients, saw its stock tumble after releasing preliminary Q1 results that came in far below expectations. The company reported sharp revenue declines, rising losses, and ongoing internal disruption as it restructures its go-to-market organization.
Key Drivers Behind the Sell-Off
- Major Revenue Miss:
Preliminary revenue came in at $70.2–$70.4 million, down 19% from the prior year and a staggering 33% below the company’s own guidance range of $100–109 million. A year ago, C3.ai reported $87.2 million in revenue for the same quarter, underscoring the severity of the drop amid broader AI sector growth. - Deepening Losses:
GAAP operating losses widened significantly to $124.7–$124.9 million, compared to $72.6 million a year earlier. The non-GAAP loss was also steep, at $57.7–$57.9 million—well above analyst expectations and indicating mounting pressure on the company’s profitability. - Leadership and Organizational Changes:
C3.ai disclosed that it had completed a full restructuring of its global sales and services organization during the quarter. The company brought in new executive leadership to drive its commercial operations, as part of broader efforts to stabilize growth and execution. - CEO Response:
CEO Tom Siebel called the results “completely unacceptable” and cited disruptions from the reorganization and his own recent health issues as contributing factors.
Stock Price Reaction
$AI plunged 25.6% following the announcement, as investors reacted sharply to the revenue shortfall, deteriorating margins, and concerns about operational stability during a time of high industry momentum.
Gildan Activewear ($GIL) to Acquire HanesBrands in $4.4B Deal
Gildan Activewear ($GIL) announced it will acquire HanesBrands ($HBI) in a transaction valued at $4.4 billion in enterprise value, combining two major players in the global apparel space. The deal is expected to double Gildan’s revenues and create one of the world’s largest providers of basic apparel, with complementary strengths in activewear and innerwear and a vertically integrated manufacturing platform.
Key Details of the Transaction
- Deal Structure: HanesBrands shareholders will receive 0.102 Gildan shares and $0.80 in cash per share, valuing $HBI at $6.00 per share—a 24% premium to its August 11 closing price
- Ownership Structure: HanesBrands shareholders will own approximately 19.9% of Gildan upon closing
- Expected Synergies: Gildan expects $200 million in annual run-rate cost synergies within three years—$50 million in 2026, $100 million in 2027, and $50 million in 2028
- Financial Impact: The deal is expected to be immediately accretive to Gildan’s adjusted diluted EPS and more than 20% accretive including synergies
- Debt & Financing: Gildan has secured $2.3 billion in financing and plans to refinance HanesBrands’ ~$2 billion in debt. Net debt-to-EBITDA is expected to drop to ≤2.0x within 12–18 months post-closing
- Headquarters & Operations: Gildan will retain its HQ in Montréal and maintain a strong presence in Winston-Salem. A strategic review of HanesBrands Australia is also planned
Strategic Rationale
Gildan cited the opportunity to expand its retail reach while leveraging HanesBrands’ strong innerwear brand portfolio and U.S. retail presence. The combined company is expected to enhance product diversification, improve supply chain efficiency, and strengthen its resilience across categories and geographies.
Stock Price Reaction
$GIL initially fell 3.57% on the day of the announcement but rebounded strongly, rising 11.83% the following day. $HBI jumped 22.5% on the news.
WEBTOON ($WBTN) Partners with Disney on Mobile Comics
WEBTOON Entertainment ($WBTN), a digital comics platform known for pioneering the vertical-scroll webcomic format, is teaming up with Disney in a multi-year collaboration to bring iconic comics from Disney, Marvel, 20th Century Studios, and Star Wars to its mobile-first platform. The partnership will feature around 100 classic and original series, all reformatted for WEBTOON’s signature vertical-scroll experience and available through a new section in the English-language app.
Key Details of the Collaboration
- Content Launch: Around 100 classic and current titles will debut in a new dedicated section of the English-language WEBTOON app.
- First Titles Available:
- Amazing Spider-Man (2022–present)
- Avengers (2012)
- Star Wars (2015)
- Alien (2021)
- Disney As Old As Time: A Twisted Tale
- Original Webcomics in Development: New, mobile-native stories from across the Disney, Marvel, and Star Wars universes are in production. These will feature fresh storylines for familiar characters.
- Monetization Model: Each series will launch with select free episodes; additional episodes will be available through WEBTOON Coins.
The deal leverages WEBTOON’s global user base and mobile-first storytelling platform to reintroduce blockbuster IPs in a more accessible and engaging format for younger, mobile-native audiences.
WEBTOON executives emphasized the long-term potential to redefine how fans interact with comic content, while Disney highlighted the collaboration as part of its broader push to innovate digital consumer experiences.
Stock Price Reaction
$WBTN shares rose 81% following the announcement.
This article is for informational purposes only and is not investment advice or a solicitation to buy or sell securities. The content is based on publicly available information and reflects the author’s opinions as of the publication date, which may change without notice. All investments carry inherent risks, including the potential loss of principal, and past performance is not indicative of future results. Forward-looking statements, including references to projected revenues, market trends, or business developments, are based on current expectations and assumptions. Actual results may differ due to various factors, including regulatory changes, economic conditions, competitive pressures, and unforeseen market fluctuations. Readers should conduct their own research or consult a financial advisor before making investment decisions. BBAE holds no position in the securities mentioned, nor are they compensated by the companies mentioned.
