Tuesday’s Headlines: Nike Acquires Virtual Shoemaker
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Boston Beer Co. (SAM) +4.2%
Hain Celestial (HAIN) +3.7%
Cloudflare (NET) +3.2%
MercadoLibre (MELI) +3.1%
Moving Down ⬇️
Huazhu Hotels Group (HTHT) -10.1%
Trupanion (TRUP) -9.2%
LoveSac (LOVE) -7.0%
Nordstrom (JWN) -6.0%
Upstart Holdings (UPST) -6.0%
1. Nike (NKE) has announced the acquisition of RTFKT, a company that specializes in the creation of virtual sneakers and fashion collectibles. This move comes as the latest in a big push from the Oregon-based sports giant to join the metaverse in a leading role. The company has already debuted the virtual Nikeland experience within the Roblox platform and patented ‘CryptoKicks – blockchain compatible digital shoes – in late 2019. This latest acquisition signals Nike’s intent of becoming a major player in the evolving digital space of the Web3 era. Despite no terms of the purchase being announced, Nike President and CEO John Donahoe proclaimed that the deal “accelerates Nike’s digital transformation and allows us to serve athletes and creators at the intersection of sport, creativity, gaming and culture.” Read more here.
2. Silicon Valley Bank (SIVB), the high-tech commercial bank that has helped fund over 30,000 start-ups, has announced the purchase of independent tech and media research boutique MoffettNathanson. The research firm has vast experience in the area of telecommunications in particular. This will allow Silicon Valley Bank to greatly expand its coverage within this industry. MoffettNathanson is highly regarded as one of the top names in technology equity research, well known for its coverage of disruptive companies. Silicon Valley Bank will hope to leverage this research acumen as it seeks to expand its own operations. Greg Becker, President and CEO of Silicon Valley Bank’s financial division, heaped praise on the company when he said “The MoffettNathanson team has built an incredible reputation as a leader in equity research.” Read more here.
3. Tesla (TSLA) CEO Elon Musk is once again in the news for selling off more of his shares in the electric vehicle (EV) firm. Musk has sold another 934,091 shares of Tesla, bringing his total of sold shares to roughly $2.87 billion so far. This all comes in the wake of a highly controversial tweet wherein Musk polled followers on whether or not he should sell 10% of his shares to fulfill his tax duties. Interestingly, he also exercised options to buy 2.13 million shares at a strike price of $6.24. Tesla closed down 5% yesterday on the back of this news, but the company is no stranger to CEO induced volatility, with Musk’s aforementioned poll sending the stock plummeting 12% last month. Read more here.