Thursday’s Headlines: Ford Goes All In

Thursday’s Headlines: Ford Goes All In

Morning folks! Did anyone get yesterday’s puzzle?

The answer was Cybersecurity.

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

Celtic Chile Verse

Hint: One of the fastest-growing industries in the world, and found in one of our headlines.

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

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Nordstrom (JWN) +37.8%

nCino (NCNO) +9.2%

Wynn Resorts (WYNN) +8.6%

Ford Motor Company (F) +8.4% Group (TCOM) +8.1%

Moving Down ⬇️

Ericsson (ERIC) -8.4%

Lemonade (LMND) -8.1%

Duolingo (DUOL) -7.6%

Sea Limited (SE) -6.9%

2U (TWOU) -4.3%

1. Ford (F) has revealed plans to separate its electric vehicle (EV) arm from its internal combustion engine business. Pressure had been mounting from investors to spin off the lucrative EV operation, so this in-house split should hopefully appease shareholders to some degree. The announcement also saw increased investment in EVs announced, with the firm now pledging $50 billion by 2026 — up from the original $30 billion. As a comparison, Ford will double its EV spend this year to $5 billion. According to CEO Jim Farley, this move will “produce as much excitement as any pure EV competitor, but with scale and resources that no start-up could ever match.” Investors seemed to agree, with the company’s stock rising by over 8% on the back of the news. Find the full announcement here.

2. Amazon (AMZN) has made the decision to close 68 retail stores across the U.S. and the United Kingdom. The move will see the company shut the doors on all of its physical bookstores, as well as Amazon Pop Up and Amazon 4-star stores. Lagging sales growth of its brick-and-mortar offerings appears to be the key factor in the decision, with physical stores notably reporting lower sales in 2021 than they did in 2018. Amazon isn’t leaving the physical retail space entirely, with Amazon Fresh, Whole Foods, and the recently launched Amazon Style still in operation. But, this noticeable cost-cutting is telling following the company’s slowest quarterly growth since 2001. Click here to read more.

3. Netflix (NFLX) has made an offer to purchase Finnish mobile gaming company Next Games. The gaming studio was previously responsible for producing a game based on 'Stranger Things,' a very successful Netflix Original show. The acquisition is set to be worth $72 million, with Netflix paying $2.33 per share in an all-cash deal, which is expected to be finalized next quarter. Netflix is continuing to expand its gaming arm following the successful release of its first mobile games in November. With a host of valuable intellectual property already at its behest, development now seems to be the priority. Vice president of games for Netflix, Mike Verdu, stated that “we are excited for Next Games to join Netflix as a core studio in a strategic region and key talent market.” Read more here.

Some more earnings from last night:

Pure Storage (PSTG) jumped by 4% yesterday following a solid earnings beat. The company beat on earnings, posting $0.36 per share versus an expected $0.26, and revenue, posting $708.6 million against a predicted $629.3 million. The firm also offered positive guidance, with Q1 revenue expected to come in at $520 million, beating analyst expectations of $512 million. Find out more here.

Veeva Systems (VEEV) is down over 11% in pre-market trading following a costly earnings miss yesterday. Despite beating on revenue, posting $485.5 million versus an expected $480.3 million, the company reported a more than 5% drop in profit compared with the year-ago quarter. Click here to read more.

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

Brown-Forman Corporation (BF.B)
Duolingo (DUOL)
Costco (COST)

Get this week’s full earnings calendar here.

Pádraig BolgerPádraig Bolger