Tuesday’s Headlines: Roku Ups the Ante
Morning folks! Did anyone get yesterday’s puzzle?
The answer was Sports Betting.
See if you can figure out today’s puzzle, and let us know on Twitter @MyWallStHQ if you think you’ve got it.
Hint: The reason the stock market was closed yesterday.
We’ll reveal the answer in tomorrow’s headlines.
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Cognex (CGNX) +6.6%
Chuy's (CHUY) +5.3%
Ford Motor Company (F) +2.9%
Trupanion (TRUP) +2.4%
Texas Roadhouse (TXRH) +2.1%
Moving Down ⬇️
Roku Inc. (ROKU) -22.3%
DraftKings (DKNG) -21.6%
Redfin (RDFN) -20.2%
MercadoLibre (MELI) -8.2%
Teladoc (TDOC) -7.8%
1. Streaming platform Roku (ROKU) is reportedly exploring the idea of developing and manufacturing its own TV sets. Currently, the company licenses its platform to a host of TV makers, but speculation arising from an alleged focus group event has led people to believe that Roku wants to take this process in-house. The move would make some sense, with supply chain problems currently wreaking havoc on its earnings. The stock is down over 30% in the past five days following Q4 results that failed to provide investors with a desired outlook for the coming year. Investors were also displeased with this purported move, as it would see Roku pivot away from its current model and into a lower-margin business. Read more on the story here.
2. As tensions between Russia and Ukraine continue to escalate, investors are preparing for the markets to be heavily impacted. Russian President Vladimir Putin delivered a television address last night that ordered the deployment of troops to two breakaway regions of Ukraine, deepening the crisis. Analysts are now awaiting the response from the U.S. markets following their closure for President’s Day yesterday. Both the S&P 500 (VOO) and the Dow Jones Industrial Average fell last week by 0.7% amidst rising tensions, so further volatility is expected. With uncertainty continuing to increase, some investors have attempted to rotate into traditional safer assets, causing U.S. treasuries to rally. Find out more by clicking here.
3. Intel has announced that it has been forced to delay its upcoming server chip release from 2023 to 2024. This marks a blow for the company, as the chip was to be among the first to utilize extreme ultraviolet lithography technology. Releasing a working chip with this technology would have seen Intel make up significant ground on rivals such as TSMC. The announcement also coincided with a meeting where the company told investors significant spending will be required over the next two years in order to fully develop its manufacturing capabilities. Wall Street appears unconvinced, as shares in the business dropped by over 5% following the meeting with investors. Click here to read more on the story.
There are five companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.