Tuesday’s Headlines: Google Faces Further Lawsuits
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Nordstrom (JWN) +13.0%
Stitch Fix (SFIX) +11.0%
TrueCar (TRUE) +10.2%
The Trade Desk (TTD) +9.9%
Moving Down ⬇️
Airbnb (ABNB) -5.6%
Sea Limited (SE) -3.3%
Tripadvisor (TRIP) -2.9%
Netflix (NFLX) -2.6%
Baozun (BZUN) -2.5%
1. Google (GOOG) is facing further legal trouble after four U.S. attorneys general announced that they are suing the company. The group is made up of attorneys general from Texas, Washington, Columbia, and Indiana. They are claiming that Google has allegedly misled its users about its location tracking services. The case hinges around the company’s 'Web and App Activity' setting. If a user turns their location tracking off, the attorneys general allege that this setting will continue to track their location. They claim that Google has intentionally misled its customers and profited from this deception. A spokesperson for Google was quick to shoot down these claims, stating that, “the attorneys general are bringing a case based on inaccurate claims and outdated assertions about our settings.” Read more here.
2. Shopify (SHOP) announced on Monday that it is making significant changes to its fulfilment network. The e-commerce company claims that these changes will help merchants using its platform to compete with bigger retailers. This news brought about a recovery of over 6% for the company’s stock which had been steeply declining since the beginning of the year. Shopify is looking to prioritize affordable two-day shipping and access to a simple returns policy for U.S. customers in this latest overhaul. The company was quick to assure investors and merchants alike that these changes would not have any impact on fulfilment capacity. Further details are set to be unveiled at the company’s Q4 earnings announcement. Read more here.
3. Digital automotive marketplace TrueCar (TRUE) saw its stock soar by over 10% yesterday following the news that leading investment bank Goldman Sachs will be taking a 6.3% stake in the company. The firm is now set to reap the benefits of this institutional backing, which could be invaluable amidst the current hammering most of the market is taking. With TrueCar expected to announce its full-year earnings late next month, this investment could prove very timely for the company. Analysts expect negative year-over-year growth for revenue following pandemic-related headwinds. This show of faith by Goldman Sachs could serve to lessen any potential sell-offs if earnings end up underwhelming. Read more here.
Two companies on the MyWallSt shortlist will report earnings today:
Get this week’s full earnings calendar here.