Wednesday’s Headlines: 2U Soars On Non-Profit Buy

Wednesday’s Headlines: 2U Soars On Non-Profit Buy

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Duluth Trading (DLTH) +7.2%

2U (TWOU) +4.2%

Nautilus (NLS) +3.4%

Coupa Software (COUP) +3.1%

Nike (NKE) +2.4%

Moving Down ⬇️

IMAX (IMAX) -3.8%

Wix (WIX) -2.4%

PagerDuty (PD) -2.0%

Stitch Fix (SFIX) -2.0%

Casey's General Store (CASY) -1.8%

1. 2U (TWOU) stock gained 4.2% yesterday off the back of confirming its acquisition of non-profit, edX, in a deal worth $800 million. The combined effort of the Harvard and MIT-founded firm and 2U’s SaaS platform could reach more than 50 million students. The buy will bring more collaboratively built content to 2U’s software as edX hosts over 3,000 courses. In addition, edX also has a solid reputation with students from the Ivy Leagues, thanks to its founders, with many seeing the acquisition as a branding move to help the public firm own this highly lucrative market. As part of the deal, 2U has promised to continue edX’s free coursework for at least five years and will invest in a new nonprofit. See more here

2. Great news for developers, Shopify (SHOP) just dropped all revenue sharing on the first $1 million made on the e-commerce giant’s app store. The move comes as rivals Apple (AAPL), Amazon (AMZN), Google (GOOG), and Microsoft (MSFT) also lowered their developer fees after coming under scrutiny for unfair charges. Staying ahead of the curve, Shopify President Harley Finkelstein, explained that commission for those who make more than a million will now be reduced to 15% from 20%, “half of what other popular app stores cost.” The Canadian-based company is obviously thinking long-term as lower revenue intake now should result in attracting more app builders to the platform. More here

3. Facebook (FB) just dropped Bulletin, its Substack newsletter competitor. The new service allows writers to publish free or paid newsletters that can be posted to the web, sent to subscribers’ directly, or share it on Facebook. The company has signed writers Malcolm Gladwell, Tan France, and Erin Andrews, to discuss topics such as sports, finance, and science. The biggest benefit for creators is that the social media firm won’t be taking a cut, for now. CEO of Facebook Mark Zuckerberg explained that Bulletin is part of his mission to continue growing its monetization tools for creators whilst it competes against Twitter’s (TWTR) Revue in the newsletter game. Read more on the story here

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