Tuesday’s Headlines: Why Is Square Up 5%?
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
DraftKings (DKNG) +7.2%
Square (SQ) +5.5%
Cloudflare (NET) +5.5%
TrueCar (TRUE) +5.3%
Roku Inc. (ROKU) +5.0%
Moving Down ⬇️
Evolent Health (EVH) -3.3%
Nautilus (NLS) -2.4%
Ford Motor Company (F) -2.0%
Baozun (BZUN) -1.8%
Etsy (ETSY) -1.4%
1. In the not so distant future, Square (SQ) might be offering its customers savings and checking accounts, according to a Bloomberg News report. The news sent shares soaring yesterday as investors welcomed the prospect of Square offering even more new services. According to experts, certain code was found within a recent Square app update that suggests that the payments company will offer a 0.5% interest rate for its savings account. Square has yet to comment but the news was a breath of fresh air for shareholders after the company’s shares have fallen more than 25% from their most recent high. Read more here.
2. Peloton (PTON) is pedaling fast to get its first factory in the U.S. up and running, and spending $400 million in the process. The fitness equipment maker hopes that the new factory will speed up production and delivery times after long delays have frustrated customers. The selected site is a 200-acre plot in Ohio where Peloton can construct over 1 million square feet of production and office space. Peloton’s manufacturing currently takes place in Asia but after the pandemic-influenced surge in demand for its products, the company is moving production closer to home and plans to have the new factory running by 2023. See more on the story here.
3. The media mega-deal worth an eye-popping $9 billion between Amazon (AMZN) and MGM Studies is expected to be announced today. The acquisition will bring a vast library of MGM content to its Prime Video service, including 'James Bond', 'Pink Panther', and 'RoboCop', helping it compete against streaming king Netflix (NFLX). The deal would be Amazon’s largest since it snapped up Whole Foods in 2017 for $13.7 billion, but it’s not the first time it has spent big on media. The e-commerce giant shelled out roughly $11 billion on content for its streaming services last year and is paying $1 billion a year on NFL rights. Read more about what mergers and acquisitions mean for investors in our recent article 'Are We Entering Into M&A Mania?'
There are three companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.