Monday’s Headlines: Tiffany & Co. Agrees on Sale Price
1. Luxury French brand LVMH has reached a deal to buy Tiffany & Co. at $135 a share, or $16.3 billion, according to sources familiar with the matter. Last month, an offer of $14 billion was reportedly made by the Christian Dior owner, but this was rejected by Tiffany’s, who believed the offered price was simply too low. Shares of Tiffany, the iconic New York-based jeweler, have risen overexcitement of a higher-priced deal. Shares closed on Friday at $125.51 and traded at about $140 in the middle of last year. Read the full story here.
2. Tesla saw its stock drop more than 6% on Friday following its rather unusual Cybertruck unveiling on Thursday. The electric-car manufacturer’s sixth vehicle was met with mixed reactions on Wall Street as some balked at the Cybertruck’s unusual design, as well as the botched demonstration of its ‘bulletproof’ windows. Despite this, Tesla CEO Elon Musk has claimed that there have been nearly 150,000 orders for the Cybertruck. In a tweet on Saturday, the CEO wrote: “146k Cybertruck orders so far, with 42% choosing dual, 41% tri & 17% single motor.” He then tweeted on Sunday that this number had risen to 187,000. Get the full story here.
3. Some earnings news from over the weekend:
Intuit: The financial software company reported strong fiscal first-quarter results last week, with a revenue increase of 15% to $1.16 billion, beating analysts' expectations of $1.12 billion. Despite beating expectations, the company’s forecast remained unchanged and saw its stock fall 4% by market-close Friday. Read more here.
Nordstrom: The U.S. department store has been unable to avoid broader sales decline in the market, yet saw its stock spike more than 10% after reporting earnings that beat analysts' estimates, and narrowed its 2019 forecasts. The company’s stock is down roughly 26% year-to-date, with sales down 2.2% from last year, which is in line with expectations. Read the full report here.
Pure Storage: The high-speed storage equipment manufacturer saw its stock plunge more than 15% on Friday after its earnings report, which forecasts worsening macroeconomic conditions due to the trade-war. Sales expectations of between $484 million and $496 million versus consensus estimates of $511.3 million. Get the full earnings report here.