Wednesday’s Headlines: Microsoft’s Big Win

Wednesday’s Headlines: Microsoft’s Big Win

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Upstart Holdings (UPST) +13.7%

Atlassian (TEAM) +10.9%

Sea Limited (SE) +10.8%

Cloudflare (NET) +9.4%

Wix (WIX) +9.2%

Moving Down ⬇️

Boston Beer Co. (SAM) -1.9%

Costco (COST) -0.6%

Brown-Forman (BF.B) -0.4%

Prologis Inc. (PLD) -0.4%

Markel Corp (MKL) -0.4%

1. Microsoft (MSFT) has been granted approval by the European Commission to proceed with its purchase of Nuance Communications. The deal, which was announced in April, is worth $19.7 billion and will bolster Microsoft’s transcription services. The EU assessed the acquisition from a competition perspective and deemed that the combined offering of the companies will still face strong challengers from rival firms. This marks a huge win for Microsoft amidst a massive European crackdown on anti-competitive business practices. However, the deal is not in the clear yet, as the UK has announced its own investigation just last week. Microsoft will be hoping for a swift conclusion to the inquiry, as it looks to use the acquisition to accelerate its growth in healthcare through Nuance’s clinical-support speech products. Read more here.

2. FactSet (FDS) posted an impressive earnings beat yesterday to round out an impressive quarter. The financial data and software company reported quarterly earnings per share (EPS) of $3.25 against an anticipated $2.99, on revenue of $424.7 million versus an analyst prediction of $419.5 million. The company, which was added to the S&P 500 Index on Monday, attributed its revenue growth of over 9% to an increase in sales of its analytics and research advisory solutions. CEO Phil Snow expressed confidence for the future by declaring that “demand for differentiated content remains strong, which we intend to capitalize on with our leading open content and analytics platform.” Read more here.

3. Mastercard (MA) and McDonald’s have announced a deal that will see the fast-food giant sell digital tech company Dynamic Yield to Mastercard for an undisclosed fee. Dynamic Yield, a specialist in providing digital customer experiences, was originally bought in order to try personalize the McDonald's drive-thru. That deal cost a reported $300 million in 2019. Despite the purchase, Mastercard will continue to work in tandem with McDonald's in order to appropriately scale and integrate Dynamic Yield’s technology globally. As Raj Seshadri, President of Data and Services for Mastercard, put it, “we’re delighted to continue working with McDonald’s, a longstanding client and proven innovator in this space.” The deal is expected to close in early 2022. Read more here.

Pádraig BolgerPádraig Bolger

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