Monday’s Headlines: Russia’s Losing Its Tech
Here were the biggest movers in the MyWallSt shortlist on Friday:
Moving Up ⬆️
Duolingo (DUOL) +4.6%
ShotSpotter (SSTI) +3.1%
The New York Times (NYT) +3.0%
Cognex (CGNX) +1.4%
American Tower (AMT) +1.3%
Moving Down ⬇️
Upstart Holdings (UPST) -14.5%
Sea Limited (SE) -11.4%
Baozun (BZUN) -10.4%
Trip.com Group (TCOM) -7.4%
1. PayPal (PYPL) said Saturday it was suspending its services in Russia, adding to the number of firms retreating from the country in response to its invasion of Ukraine. “Under the current circumstances, we are suspending PayPal services in Russia,” Dan Schulman, PayPal’s CEO, said in a letter addressed to the Ukrainian government. PayPal is unlikely to suffer any financial recourse from this, having shut down new operations in Russia back in 2020. The new restrictions are simply a removal of all remaining services. Joining them was Netflix (NFLX), though the streaming service is unlikely to feel any pressure from this, given less than 1 million of its 222 million global subscribers come from the region. Read the full report here.
2. Despite telling investors last week that he could “find little that excites us” in the equity markets, Warren Buffett’s Berkshire Hathaway (BRK.B) appears to have taken a big chunk of Occidental Petroleum (OXY). As of Friday, Berkshire owns 91.2 million common shares of the oil giant, worth $5.1 billion at Friday’s close of $56.15. OXY stock gained 18% on Friday and 45% last week on the news, while Berkshire is up less than 3% over the week. In the shorter term, Buffett’s bet on oil prices in recent years hasn’t been doing very well when they collapsed in early 2020 due to the onset of the COVID-19 pandemic. However, amid Ukrainian war-related volatility, there could be a change in thinking for the Oracle of Omaha. Read the official filing here.
3. Disney (DIS) continues to chase growth in its streaming model, announcing the launch of ad-supported streaming for its Disney+ product in late 2022. The model will attempt to bring an influx of new users to the platform that can be upsold once they are within the Disney+ ecosystem. While it’s still undisclosed how much the House of Mouse will charge for this service — if anything — it has the potential to support the company’s ambitious target of acquiring between 230 million and 260 million subscribers for the service by 2024. This move presents an opportunity in international markets like Europe, where consumers are much more likely to subscribe to only one streaming service, and competitors have a stronger hold of the market share at present. Read the full story here.
Get this week’s full earnings calendar here.