Tuesday’s Headlines: Amazon’s Silent Purchase
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Duolingo (DUOL) +5.8%
Evolent Health (EVH) +3.6%
Calavo Growers (CVGW) +2.2%
ShotSpotter (SSTI) +2.0%
Wix (WIX) +1.6%
Moving Down ⬇️
Texas Roadhouse (TXRH) -15.0%
Huazhu Hotels Group (HTHT) -13.1%
DraftKings (DKNG) -12.8%
The Trade Desk (TTD) -12.6%
Chuy's (CHUY) -12.3%
1. Amazon (AMZN) has acquired e-commerce software company Veeqo. The UK-based firm provides a suite of online tools that allow businesses to sell products on Amazon’s platform. The deal actually took place last November, but Amazon remained tight-lipped, with news finally breaking following confirmation yesterday from a firm invested in Veeqo. Amazon declined to discuss the terms of the deal when contacted, but expressed excitement about new opportunities to “facilitate growth for sellers’ multi-channel businesses, and enhance the experience of their customers.” This purchase will bulk out Amazon’s Multi-Channel Fulfillment service as it attempts to prise customers away from rivals such as Shopify. Find out more on the story here.
2. Microsoft (MSFT) has expanded its operations in India following the announcement of plans for its fourth data center in the country. The center will be located in Hyderabad in the southern state of Telangana. With the public cloud market in India expected to reach $10.8 billion by 2025, Microsoft’s continued effort to grow in the country makes sense. Head of Microsoft India, Anant Maheshwari, stated that “a public cloud data center is not a one-time investment, it is a continuous investment that we have,” outlining the further willingness of the firm to develop in that market. Microsoft already serves over 340,000 companies in India via its cloud network, with this new data center likely to see that number increase. Click here to read more.
3. Rumors are swirling that Google (GOOG) is looking to acquire cybersecurity company Mandiant. The speculation sent shares in the Virginia-based firm soaring by over 16% yesterday. Reports have also surfaced that Microsoft is interested in pursuing the company following Mandiant’s vital role in helping discover the notorious Solarwinds hack that plagued both government and non-government organizations alike in 2020. Google is looking to bolster its cloud-computing arm in an attempt to compete with Microsoft Azure, so a deal for either company could help swing the balance of power. Both Google and Mandiant have so far declined to comment. Read more here.
There are four companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.