Thursday’s Headlines: Amazon and Visa at War?
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Tesla Motors (TSLA) +3.2%
Apple (AAPL) +1.6%
Diageo (DEO) +1.5%
Hasbro (HAS) +1.3%
Moving Down ⬇️
StoneCo (STNE) -34.6%
Roku Inc. (ROKU) -11.3%
Stitch Fix (SFIX) -6.8%
Wix (WIX) -6.5%
1. Amazon (AMZN) has announced that as of January 19, 2022, it will no longer accept payments from Visa credit cards issued in the UK. Visa stock closed down 4.7% following the news, with Amazon citing the payment company’s high fees as the reason behind the move. This marks the latest flurry in a war between the two business behemoths that has raged for the past few months. A spokesperson for Amazon explained that “The cost of accepting card payments continues to be an obstacle for businesses striving to provide the best prices for customers. These costs should be going down over time with technological advancements, but instead they continue to stay high or even rise.” Read more here.
2. Online betting giant DraftKings (DKNG) yesterday announced a new partnership with eSports company FaZe Clan. FaZe Clan, which plans to go public via SPAC in the near future, began life as an eSports brand but has quickly grown to become an online content machine. As DraftKings' North American President Matt Kalish put it, “FaZe Clan is a juggernaut of internet engagement and culture, built from the ground up into one of the most influential eSports and content organizations in the world.” The exclusive deal will see DraftKings become the official betting partner of FaZe as it looks to expand further into the eSports market. “We believe this partnership marks an important cultural crossover moment for the future of sports and entertainment,” explained FaZe Clan CEO Lee Trink. Read more here.
3. In a move that has surprised many, Apple (AAPL) yesterday announced that the company will begin to offer a Self Service Repair Online Store. This announcement coincides with increasing pressure on the tech giant to succumb to the “right to repair” movement that has even caught the attention of U.S. President Joe Biden. Apple users with damaged devices will now be able to receive genuine tools and components certified by the company to attempt to make their own repairs. “Creating greater access to Apple genuine parts gives our customers even more choice if a repair is needed,” explained COO Jeff Williams. The program will launch in the U.S. in early 2022 nut no price structure has been released as of yet. Read more here.
There are three companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.