Tuesday’s Headlines: The Name's Bond, Amazon Bond
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Nordstrom (JWN) +5.3%
Lemonade (LMND) +4.4%
Ctrip (TCOM) +3.8%
Duluth Trading (DLTH) +2.6%
Ford Motor Company (F) +2.6%
Moving Down ⬇️
DraftKings (DKNG) -3.1%
Tripadvisor (TRIP) -2.8%
Markel Corp (MKL) -2.6%
Booking Holdings (BKNG) -2.6%
1. According to multiple sources, Amazon (AMZN) is in discussions to buy film studio MGM, the legendary maker of the James Bond movies, for up to $9 billion. Landing such an iconic franchise is a big boost for Amazon as competition in the streaming space heats up. Amazon's Prime Video first launched in 2016 and since then it has really expanded and now has 175 million users. The acquisition would help Amazon Prime Video beef up its content catalogue as MGM is famous for producing cult titles such as ‘Rocky’, ‘Pink Panther’ and more recently ‘A Handmaid’s Tale’ and ‘Vikings’. Read the full story here.
2. While we’re on the topic of media content mergers, AT&T has agreed to merge its media assets with Discovery Communications to create one streaming giant. By combining its WarnerMedia division with Discovery, the media mega-merger will help AT&T build a globally scaled growth company with a strong balance sheet that is well positioned to compete against Netflix (NFLX) and the world's largest streamers. The telecom company will supposedly receive an aggregate amount of $43 billion in a combination of cash and debt while AT&T’s shareholders will receive stock representing 71% of the new company, while Discovery investors will get 29%. See more here.
3. Yesterday, ‘The Big Short's' Michael Burry revealed a short position against Tesla (TSLA) worth more than half a billion dollars. According to a regulatory filing, the famed investor had bearish put options (which give investors the right to sell stock at a certain price in the future) on 800,100 Tesla shares by the end of Q1 that were worth $534 million. The man known for calling and making a profit from the subprime mortgage crisis has previously stated that Tesla’s reliance on selling regulatory credits to generate profits is a worry. After the news, Tesla stock dipped 2% on Monday. Check out the full story here.
There are 5 companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.