November 14, 2025 Pre-Market Key Stock Trends: A Mix of M&A Surges and Poor Performances

Key Pre-Market Trends and Market Environment

On November 14, 2025, the pre-market was marked by a flurry of M&A (mergers and acquisitions) announcements and third-quarter earnings reports, leading to stark contrasts in individual stock performances. The biotech sector, in particular, is witnessing intense acquisition competition among major pharmaceutical companies, indicating that the biotech M&A boom that began in the second half of 2024 continues into 2025. The U.S. biotech M&A market reached $124 billion in 2024, and the industry projects a 15% increase to $143 billion in 2025.

The most notable stock in pre-market trading was CDTX (Cidara Therapeutics), which surged 103.18% following the announcement that New Jersey-based pharmaceutical company Merck & Co. would acquire it for $221.50 per share. This figure more than doubled the previous day’s closing price, serving as a prime example of the active premium acquisitions in the biotech industry. Merck’s acquisition is analyzed as a strategic decision to strengthen its antifungal treatment sector, with the total acquisition amount estimated at approximately $3.2 billion.

Positive movements were also observed in the healthcare technology sector. OWLT (Owlet Inc.) rose 12.70% following the announcement of strong third-quarter results, an upward revision of its 2025 fiscal year guidance, and FDA approval of its pediatric health monitoring device. Based in Salt Lake City, Utah, OWLT is noted for its infant health monitoring technology via smart socks, and the FDA approval significantly enhanced its credibility as a medical device. The company reported third-quarter revenue of $45.8 million, a 34% increase from the same period last year, and revised its annual revenue target for 2025 from $180 million to $215 million.

The Ups and Downs of Mergers and Acquisitions and Corporate Earnings

M&A activities were also vibrant at AVDL (Avadel Pharmaceuticals). Dublin, Ireland-based AVDL announced it received a higher acquisition offer from Denmark’s Lundbeck than the previous proposal, resulting in a 17.72% surge. Lundbeck’s new offer is $11.25 per share, a 15% increase from the previous $9.75. AVDL specializes in narcolepsy treatments, with its flagship product FT218 (lumryz) having received FDA approval in 2021, showing steady growth since. The company recorded annual revenue of $234 million in 2024, with expectations to surpass $300 million in 2025.

Homebuilder BZH (Beazer Homes USA) rose 8.13% after reporting earnings per share (EPS) of $0.22, exceeding consensus estimates. Atlanta-based BZH operates primarily in the southeastern and western U.S., with third-quarter orders increasing 18% year-over-year to 1,847 homes. As the U.S. housing market continues to face supply shortages, homebuilders are seeing improved performance, with the average home sale price rising 7.3% year-over-year to $428,000.

Conversely, SRRK (Scholar Rock Holding) rose 6.58% despite reporting a third-quarter EPS of -$0.90, missing the expected -$0.70. The rise is attributed to the Massachusetts-based biotech company’s robust cash reserve of $369.6 million, ensuring sufficient funding for future clinical trials. The company’s main pipeline, SRK-015, is a treatment for spinal muscular atrophy (SMA) currently in Phase 3 clinical trials, with results expected in the first half of 2026.

In the media industry, WBD (Warner Bros. Discovery) rose 2.44% after announcing it would begin reviewing strategic alternatives. Based in New York, WBD is reportedly attracting interest from PARA (Paramount Global), CMCSA (Comcast), and NFLX (Netflix). Amid intensified competition in the streaming market and accelerated restructuring among traditional media companies, WBD’s content library and HBO Max platform continue to be highly valued. The company achieved profitability in its streaming division in the fourth quarter of 2024, with global streaming subscribers reaching 110.5 million.

Among the declining stocks, TSST recorded the largest drop, plummeting 42.16%. The primary cause was poor third-quarter performance in its systems integration division, particularly due to delayed IT investments by corporate clients. While the global systems integration market is expected to grow 7.6% from $342 billion in 2024 to $368 billion in 2025, companies’ conservative investment approaches due to economic slowdown concerns are causing short-term growth rate deceleration.

STUB (StubHub) fell 19.45% following news of widening third-quarter losses. The San Francisco, California-based ticket resale platform is facing ongoing profitability challenges due to intensified competition and pressure to lower fees. The company reported a third-quarter net loss of $87.4 million, a 40% increase from the $62.3 million loss in the same period last year. Despite the recovery of the live entertainment market, margin pressures from fierce competition with rivals like Ticketmaster and SeatGeek persist.

In the semiconductor industry, AMAT (Applied Materials) fell 7.20% due to news of strengthened export regulations to China. Based in Santa Clara, California, AMAT is a global leader in semiconductor manufacturing equipment, with the Chinese market accounting for about 30% of its total revenue, raising concerns about direct impacts from tighter export controls. The U.S. government’s new semiconductor export regulations particularly target equipment needed for advanced AI chip manufacturing, indirectly affecting AI chip manufacturers like NVDA (-3.50%). Analysts predict disruptions in AI infrastructure development plans by cloud service providers like Amazon and Microsoft.

Tesla (TSLA) fell 4.62%, with the Wall Street Journal attributing the decline to “growth stock sell-offs amid reduced shutdown concerns.” As the likelihood of a U.S. government shutdown diminishes, investors are reportedly realizing profits from overvalued growth stocks. Tesla recorded an annual electric vehicle sales volume of 1.8 million units in 2024, a 20% increase from the previous year, but the pace of market share expansion is slowing due to competition from Chinese BYD and German Volkswagen.

Retailer Walmart (WMT) fell 3.50% despite news of John Furner being appointed as the new CEO. Based in Bentonville, Arkansas, WMT selected Furner, who currently serves as president of Walmart US, to succeed current CEO Doug McMillon. Since 2019, Furner has successfully driven online sales growth and store digitalization in the U.S. division. Walmart’s annual revenue for 2024 was $648 billion, with the e-commerce division growing 23%, accounting for 14% of total revenue.

This pre-market trend indicates that the 2025 stock market is increasingly sensitive to individual companies’ fundamentals and industry-specific conditions. Particularly, the volatility of stock prices is significantly expanding as M&A activities in the biotech and healthcare technology sectors become more active, while the semiconductor industry continues to face uncertainties due to geopolitical risks and strengthened export regulations. In the coming weeks, as the fourth-quarter earnings season kicks off, stock price volatility is expected to increase further based on individual companies’ earnings and guidance.

This article is for informational purposes only and does not constitute investment advice or recommendations. Investment decisions should be made based on individual judgment and responsibility.