Monday’s Headlines: Judge Rules In Apple v.s. Epic Case
Here were the biggest movers in the MyWallSt shortlist on Friday:
Moving Up ⬆️
Bumble (BMBL) +4.5%
Match Group (MTCH) +4.2%
Zoom Communications (ZM) +1.9%
Moving Down ⬇️
Upstart Holdings (UPST) -6.6%
Stitch Fix (SFIX) -6.2%
Wix (WIX) -5.0%
RH (RH) -4.2%
Bill.com (BILL) -4.1%
1. One of the most closely followed stories in Big Tech has been Apple’s (AAPL) ongoing dispute with gaming developer, Epic Games. On Friday, Judge Yvonne Gonzalez Rogers issued an injunction that said Apple will no longer be allowed to prohibit developers from providing communications that direct users away from Apple in-app purchasing — Apple typically takes a 15% to 30% cut of these gross sales, which reportedly amounted to revenue of $64 billion in 2020. Apple will have to make changes to its policies by December when the injunction comes into effect. However, the iPhone-maker had one thing to celebrate as Judge Rogers concluded that Apple was not a monopolist and “success is not illegal.” Read more here.
2. If you missed Friday’s roundup, you might be wondering why Peloton’s (PTON) share price jumped 7%. The digital fitness leader unveiled that it’s raising the bar for its sports apparel category, which grew from $2.6 million in fiscal 2017 to $14.7 million in fiscal 2019. The company will be launching a complete activewear line to complement its exercise equipment and looks set to rival the likes of Lululemon (LULU). Selling athletic apparel is complementary to the company’s core business and adds another revenue stream that can improve its profitability. With Peloton’s share price down a concerning 21% year-to-date (YTD) due to decelerating growth and product recalls, this announcement is a nice reprieve for investors. Read more here.
3. The neverending acquisition streak keeps going over at Microsoft (MSFT) as the tech giant acquired learning marketplace start-up TakeLessons on Friday. TakeLessons allows users to book paid online and in-person classes on a variety of subjects, and is likely to slot in with LinkedIn — which provides more than 6% of Microsoft’s annual revenue. A spokesperson for Microsoft addressed the acquisition, though discloses no terms of the deal: “This acquisition is in response to the growing demand on personalized hybrid opportunities and expands our product offerings to TakeLessons consumers, a leading online learning platform.” Read more here.