Wednesday’s Headlines: Hindenburg’s Next Target
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Evolent Health (EVH) +2.8%
Pinterest (PINS) +2.7%
Axos Financial (AX) +2.2%
FedEx (FDX) +2.2%
Bill.com (BILL) +1.5%
Moving Down ⬇️
Yext (YEXT) -7.1%
Lemonade (LMND) -7.1%
Roku Inc. (ROKU) -6.8%
1. DraftKings (DKNG) shares closed 4.2% lower last night after Hindenburg Research declared that it had taken a short position against the stock. Hindenburg’s report compares the sports betting company’s valuation to its competitors and raises concerns about its potential in the highly competitive gambling scape. The research firm also said that SBTec, a company that DraftKings merged with, “also brings exposure to extensive dealings in black-market gaming, money laundering and organized crime." Responding to those claims, DraftKings stated that it was comfortable with SBTech’s business and has conducted extensive reviews on the company. Hindenburg has previously taken high-profile calls against Nikola and Lordstown Motors, which have both suffered falling stock prices since. See more here.
2. Spotify (SPOT) just announced one of the largest podcast deals ever, splashing out $60 million to bring Alexandra Cooper’s ‘Call Her Daddy’ show to the platform exclusively. Cooper’s show, which covers dating and mental health, was the fifth most popular podcast on Spotify’s platform last year so was an easy choice. Recently, Spotify has focused on signing podcasts to exclusive deals, signing Dax Shepard’s ‘Armchair Expert’ last month, and is supposedly working with Kim Kardashian and Prince Harry and Meghan Markle on creating audio shows. Bringing in big names with exclusive contracts should attract a wider audience, something Spotify will have to prove in its future earnings reports. More here.
3. Yesterday, Facebook (FB) boss Mark Zuckerberg hosted the company's first public test of Live Audio Rooms, its Clubhouse clone. Critics have noted that the new feature seems to have an identical format as rival Clubhouse, including a speaker stage and a section showing the remaining listeners. Users can like the stream and share the room either to a group, a Facebook post, or to others through the room link. The new product comes at a time when social audio has really taken off, with Twitter (TWTR) playing catch up with its Spaces addition. Meanwhile, Discord, Spotify, Reddit, and Microsoft’s (MSFT) LinkedIn have all either launched or are building their own competing products. Read more here.