Tuesday’s Headlines: New York Times Buys Wordle
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Upstart Holdings (UPST) +14.7%
Cloudflare (NET) +14.5%
Baozun (BZUN) +13.9%
Spotify (SPOT) +13.5%
Bill.com (BILL) +12.0%
Moving Down ⬇️
Boston Beer Co. (SAM) -1.3%
The Home Depot (HD) +0.1%
Morning folks! Did you manage to crack the code to yesterday’s investing-related anagram?
The answer was Stock Market.
Remember to let us know on Twitter @MyWallStHQ if you figure out today’s puzzle.
We’ll reveal the answer in tomorrow’s headlines.
1. The New York Times (NYT) has announced the acquisition of the popular online game 'Wordle.' The word-based guessing game has catapulted itself to the forefront of internet culture over the last few months, with millions of people now playing along daily. The deal will see the publishing giant purchase the site from its developer, Josh Wardle, for a fee in the low seven figures. The NYT will be hoping this helps achieve its goal of 10 million digital subscribers by 2025 and follows the recent purchase of sports media platform The Athletic for $550 million earlier this month. 'Wordle' will remain free to play and no changes are expected to be made to its gameplay. Instead, its new owners will be hoping it can simply attract more potential subscribers to its product. Read more here.
2. Internal documents have revealed that Peloton (PTON) has slashed sales projections for its apparel unit for the rest of its fiscal year, despite revenue doubling from 2020 to 2021. This marks another stumble for the exercise equipment manufacturer following a series of high-profile failings over the last number of months that has seen the stock lose nearly 80% of its value in the past half-year. Demand for athletic apparel boomed throughout the pandemic and Peloton benefitted massively. However, with demand now slowing, Peloton’s initial outlook appears to have been overly optimistic. Originally forecasted to generate more than $200 million in revenue, estimates are now closer to the $150 million mark. With its earnings call fast approaching, investors should prepare for a continued bumpy ride. Read more here.
3. Recent reports have revealed that the U.S. antitrust review of Microsoft’s (MSFT) proposed purchase of Activision Blizzard (ATVI) will be overseen by the Federal Trade Commission (FTC). Microsoft has managed to avoid many of the regulatory woes faced by some of its Big Tech competitors over the last year, but its blockbuster move to become the world’s third-largest gaming company has put it firmly in the sights of antitrust lawmakers. Should the deal fail to hold up under FTC scrutiny, Microsoft will reportedly have to pay a $3 billion break fee as part of the contract. This may indicate confidence that the deal will sail through without issue, but antitrust approval is increasingly hard to come by these days with concerns over the power and reach of large tech companies. Read more here.
Four companies on the MyWallSt shortlist will report earnings today:
Get this week’s full earnings calendar here.