Tuesday’s Headlines: Is Facebook Leaving Europe?

Tuesday’s Headlines: Is Facebook Leaving Europe?

Morning folks! Did anyone get yesterday’s puzzle? 

The answer was Compound Interest

Today's answer can be found early in both the Nvidia and the Bumble story.

See if you can figure out today’s puzzle, and let us know on Twitter @MyWallStHQ if you think you’ve got it.

Nicosia quit

We’ll reveal the answer in tomorrow’s headlines. 

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Peloton Interactive (PTON) +20.9%

IMAX (IMAX) +4.3%

Cloudflare (NET) +3.8%

Chegg (CHGG) +3.6%

Tripadvisor (TRIP) +3.0%

Moving Down ⬇️

Square (SQ) -5.6%

Facebook (FB) -5.1%

Baozun (BZUN) -3.8%

PayPal (PYPL) -3.7%

ShotSpotter (SSTI) -3.4%

1. Meta (FB) has revealed that it may be forced to shut down some of its major platforms in the EU as a result of a data-sharing issue. The tech giant has outlined reluctant plans to pull both Instagram and Facebook from the EU if it’s blocked from transferring user data back to U.S. servers. European regulators are currently creating legislation aimed at protecting its inhabitants' data. In its annual report, Meta was blunt in stating that such a move would “materially and adversely affect our business, financial condition, and results of operations.” Investors in the company are already feeling the pinch after a landmark loss of over $230 billion last week, and will be keeping a close eye on how this story develops from here. Find out more here.

2. Nvidia’s (NVDA) proposed $40 billion acquisition of semiconductor company ARM is officially off. A joint statement from Nvidia and ARM's owner, SoftBank, revealed that “significant regulatory challenges” were the cause of the collapse. Both the UK and the U.S. had launched probes into the deal due to a potential monopoly in the chip technology space being formed. Other Big Tech companies also voiced their concerns, with Google (GOOG) and Microsoft (MSFT) among those opposing the proposed purchase. SoftBank is now preparing to take ARM public via IPO, having originally acquired the firm in 2016. ARM is already looking at a record year for revenue, as it was one of the few beneficiaries of the global semiconductor shortage which sent demand sky high. Click here to get more on the story.

3. Bumble (BMBL) has announced its first-ever acquisition. The dating app unveiled plans to purchase the French app ‘Fruitz’ for an undisclosed fee. Fruitz certainly fits the bill for Bumble’s repertoire of apps, with a distinct focus on “empowering people to be honest with their intentions” according to CEO Julian Kabab. The app currently has over 5.6 million global downloads and will offer Bumble an excellent opportunity to continue to expand in France and amongst the highly sought-after Gen Z audience. Fruitz will be integrated into Bumble’s suite of dating apps and will not undergo any wholesale changes or rebrand. The original team, including the co-founders, will continue to run the app from France but now with the added weight of Bumble’s resources behind it. Read more here.

Some more earnings from last night:

Despite posting an earnings beat yesterday, Hasbro (HAS) stock slid on a cautious outlook for the year. The company posted earnings per share (EPS) of $1.21 against an estimated $0.88, on revenue of $2.01 billion versus an analyst prediction of $1.87 billion. However, the company warned that shipping issues and input costs could weaken its profit line for the coming year. Get more information here.

Take-Two (TTWO) reported EPS of $1.32 versus an anticipated $1.12, on revenue of $866 million against an expected $868 million. This mixed earnings call saw the gaming developer’s stock fall by over 2% in after-hours trading. This came only days after the company had popped by over 7% following the announcement that a new ‘Grand Theft Auto’ game is officially in development. To find out further details on Take-Two’s earnings, click here.

Chegg (CHGG) reported a strong earnings beat yesterday after the bell. The education technology company posted EPS of $0.38 against an estimate of $0.31, on revenue of $207.47 million versus an analyst predicted $195.24 million. Shares in the company spiked by over 8% in pre-market trading as a result of the news. You can find out more by clicking here.

There are three companies on the MyWallSt shortlist that will report earnings today:

Chipotle Mexican Grill (CMG)
Paycom (PAYC)
Peloton (PTON)

Get this week’s full earnings calendar here.

Pádraig BolgerPádraig Bolger