Tuesday’s Headlines: India Blocks Sea Limited Games

Tuesday’s Headlines: India Blocks Sea Limited Games

Morning folks! The answer to yesterday’s anagram was Inflation.

Can you get today’s anagram?

i launch merger

Hint: One of the world’s most renowned investors.

Visit us on Twitter @MyWallStHQ if you think you have the answer.

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

2U (TWOU) +5.8%

Zillow (Z) +4.8%

Upstart Holdings (UPST) +4.6%

TrueCar (TRUE) +4.3%

Square (SQ) +3.5%

Moving Down ⬇️

Sea Limited (SE) -18.4%

Nautilus (NLS) -7.7%

Peloton Interactive (PTON) -5.3%

DraftKings (DKNG) -4.8%

Wix (WIX) -3.2%

1. Sea Limited (SE) shares sank more than 18% yesterday after India banned its flagship mobile game ‘Free Fire’, which is produced by Sea’s Garena division, is being removed due to national security concerns amid ongoing tensions between India and China. Google’s (GOOG) Play Store acknowledged the request and stated it will comply, banning the game temporarily to review, alongside the App Store. It’s a big loss to the company as more than half of its 70 million global monthly active users in gaming were reportedly located in India. The market has been a key demographic given its size and proximity to Sea’s operations, but we could now see it looking towards other growing regions such as South America, North America, and Europe to offset damage. Read the full story here.

2. They don’t call him the ‘Oracle of Omaha’ for nothing! Berkshire Hathaway (BRK.B) head Warren Buffett has revealed that the company purchased 14.66 million shares in Activision Blizzard (ATVI), valued at the time at just under $1 billion, prior to its announced acquisition by Microsoft (MSFT). Despite the public relations issues that were ongoing within Activision at the time, this demonstrates Berkshire’s experience to spot some of the best deals on the market, and Microsoft certainly agreed, having paid a 45% premium for the company, which Berkshire shareholders will reap the benefits from now. Read the full story here.

3. Tesla (TSLA) is trialing options in Europe by opening up its Supercharger network in the Netherlands to every electric vehicle owner. Tesla’s proprietary network has meant that the company was able to previously prevent others who did not own a Tesla from using its charging stations. The Netherlands is the ideal country within Europe to test this strategy as it has the largest number of charging stations at 75,000. For the moment, Tesla has just 33, with plans to provide an additional 18 in the future. This development means that Tesla will be able to profit from other large automakers such as Volkswagen which have a commanding market share, and remains one of Tesla’s key competitive advantages in EVs. Read the full story here

One more earnings from last night:

Arista Networks (ANET)
Arista Networks announced quarterly results yesterday, reporting a 10% year-over-year (YoY) increase in revenue to $823 million and non-GAAP net income of $262 million, a big boost from $198 million in the year prior. CEO Jayshree Ullal commented, “we have executed well to establish Arista among the fastest growing networking companies in this decade.”

There are 2 companies on the MyWallSt shortlist that will report earnings today:

Upstart (UPST)
Airbnb (ABNB)
Wynn Resorts (WYNN)

Get this week’s full earnings calendar here. 

David GranahanDavid Granahan